Market Rate HUD 223f

Market Rate vs. Affordable Properties in Relation to HUD 223f Loans

Market Rate vs. Affordable Properties in Relation to HUD 223f Loans

When purchasing or refinancing a building with a HUD 223(f) loan, investors and developers often need to decide whether to set rents low enough to have the property legally qualify as affordable housing, or to set rents at the going market rate. While market rate units typically provide more rental income upfront, deciding to make an affordable housing development can have a variety of benefits for developers and investors.