Cluster 3



Moderate


Suburbs of established metro areas


NIMBYism


Moderate income
55+ years old
No high school diploma
Hispanic/Latino


2-4 unit & 50+ unit buildings
Built before 2000
Low vacancy


Limited new development

Older rental housing stock and limited new construction, paired with increased demand from higher-income renters leads to challenging affordability conditions. Most frequently found in suburbs of more "mature" metro areas.

  • Demand: This market type has moderate renter levels. Renters in this area are more likely to be middle-aged (45-54) than in other market types, and this area saw the largest decline in younger renters aged 25-34. The distribution of renter incomes is fairly diverse and consistent with the distribution of renter incomes overall. This area is the most racially/ethnically diverse. It is majority white, but has the highest share of Hispanic population and average or above average levels of Black and Asian population.

  • Supply: The rental stock was largely built between 1950 and 2000, but what distinguishes this cluster is higher levels of pre-WW2 housing and generally low levels of newer rental housing development despite the presence of higher-income renters. It has higher levels of rental units in 2 to 4 unit buildings and 50+ unit buildings than most other clusters.

  • Affordability: This area has indicators of emerging affordability challenges and rising displacement pressure. It has among the lowest levels of lower-cost rental supply, and high (and increasing) levels of lower-income renters living in higher-cost units. Because of this, it has the second highest level of cost burdened renters and has seen a decrease in lower-income renters. This market type has higher levels of housing choice voucher usage with lower levels of project-based section 8 and public housing.

Programs active in Cluster 3

District Opportunity to Purchase Act (DOPA) Washington D.C.

Cluster 1 Cluster 2 Cluster 3

Entities involved: City Government, Non-Profit Housing Developer

The District Opportunity to Purchase Act (DOPA) is a preservation tool implemented by the DC Department of Housing and Community Development that promotes affordable rental housing by maintaining the affordable status of existing affordable rental units as well as increasing the total number of affordable rental units within the District. … Read more >

Local Rental Owners Collaborative (LROC) Los Angeles

Cluster 3

Entities involved: Foundation, Non-Profit Organization

The Los Angeles Local Rental Owners Collaborative (LROC) was created to provide much-needed financial assistance, tools, and resources to local rental owners in South Los Angeles — especially in communities impacted by COVID-19 and the region’s housing affordability crisis. The program will benefit local rental property owners by providing: - … Read more >

Rental Improvement Fund (RIF) Philadelphia

Cluster 1 Cluster 2 Cluster 3 Cluster 5 Cluster 6

Entities involved: Non-Profit Organization

Philadelphia Housing Development Corporation (PHDC) offers loans for small property owners owning no more than 15 units across no more than 5 properties are eligible for full forgiveness or a preferable 0% interest rate if landlords meet program affordability requirements during the loan term. Loan amount must be between $10,000 … Read more >

Acquisition Opportunity Program Boston

Cluster 1 Cluster 2 Cluster 3

Entities involved: City Government

The City of Boston Mayor’s Office of Housing administers the Acquisition Opportunity Program. This program offers developers the opportunity to pre-qualify for a set amount of funding, up to $75,000 per unit. These potential buyers can then become more competitive in the real estate market. To pre-qualify for the program, … Read more >

Opportunity Investment Fund (OIF) Chicago

Cluster 2 Cluster 3

Entities involved: Community Development Financial Institution (CDFI)

Community Investment Corporation (CIC) offers the Opportunity Investment Fund (OIF), also referred to as the Mezzanine Debt Fund. The Fund provides low-cost mezzanine debt to developers who purchase existing, functioning rental buildings in high cost markets. In exchange, at least 20% of those units must be affordable to households at … Read more >

Washington Housing Initiative Impact Pool (WHIIP) Washington D.C.

Cluster 1 Cluster 2 Cluster 3

Entities involved: Financial Institution

The Washington Housing Initiative Impact Pool (WHIIP) is an approximately $115 million investment vehicle that targets after-tax returns equivalent to many traditional investment funds. The Impact Pool is managed by JBG SMITH Impact Manager, a subsidiary of JBG SMITH Properties. The Impact Pool provides mezzanine/second trust financing, coordinates placement of … Read more >

Small Buildings Program (SBP) Washington D.C.

Cluster 1 Cluster 2 Cluster 3

Entities involved: City Government

The District of Columbia’s (D.C.) Department of Housing and Community Development’s (DHCD) Small Building Program (Program) provides financial assistance for limited systems replacement and other key repairs to eligible property owners of multi-family rental housing located in the District of Columbia (District). Repairs are expected to improve sub-standard housing conditions, … Read more >

Amazon’s Housing Equity Fund Nashville, Seattle, Washington D.C.

Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5

Entities involved: City Government, For-Profit Entity, Local Housing Authority, Non-Profit Organization, State Housing Finance Agency (HFA)

In January 2021, Amazon launched the $2 billion Housing Equity Fund with the goal of creating and preserving 20,000 affordable homes across three of its hometown communities—Washington State's Puget Sound region; the Arlington, Virginia/National Capital region; and Nashville, Tennessee—within five years. The Fund is designed to help moderate- to low-income … Read more >

Low-Income Rental Classification (LIRC) Edina, Golden Valley, Minneapolis, Saint Paul, St. Louis Park

Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6

Entities involved: State Housing Finance Agency (HFA)

Qualifying Properties are at least 20% of total units in the rental property must be affordable (Section 8, LIHTC, USDA, Rent restrictions placed by state, local, or federal government at or below 60% AMI). For qualifying properties, the eligible units use the 4d(1) tax class rate of .25%. The lower … Read more >

MSAs including Cluster 3


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