Cluster 4
Moderate
Urban core of smaller, growing metro areas
Decreasing share of affordable units
Low income
Under 35 years old
5+ unit buildings
Built after 2000
High vacancy
Low density
New development of high density buildings
Generally affordable rental markets that have seen new growth in rental housing development, but also rapidly deteriorating affordability conditions. Often found as part of the urban core of smaller, growing metros or suburban areas in larger, more established metros
- Demand: This market type has moderate levels of renter households. Renters in this area are more likely to be younger (under 35) than other areas. It has the highest level of moderate-income renters (50%-80% AMI) and has seen the largest growth in renters at this income level compared to other areas. It has also seen large declines in very low-income renters (less than 30% AMI). This area is racially/ethnically diverse with a majority white population, but has high and increasing levels of Black and Hispanic/Latino population compared to other clusters.
- Supply: The rental stock was largely built between 1950 and 2000, but what distinguishes this cluster is low levels of rental housing built before WW2. It has low levels of rental housing in 2 to 4 unit buildings, but the highest levels of rental units in 5 to 49 unit buildings. This area has seen some indication of new investment with higher levels of rental properties built since 2000 and above average increases in properties built since 2000. There has also been an above average increase in rental units in 50+ unit properties. In certain parts of the country, this market type is also more likely to have mobile home rentals.
- Affordability: This area is generally affordable, but trends since 2012 indicate that this area has seen the largest declines in rental affordability conditions. This market type has high levels of affordable rental supply and average levels of renter cost burden. However, it has the largest recent declines in the share of rental units that are affordable. It has also seen the largest increase in the share of lower-income renters living in higher-cost units. This area has also seen the largest declines in the share of renters who are lower-income. This has modest levels of subsidy with average levels of housing choice voucher usage, but low levels of project-based section 8 and public housing.
Programs active in Cluster 4
Small NOAH Program Saint Paul
Cluster 1 Cluster 2 Cluster 4 Cluster 5 Cluster 6Entities involved: Community Development Financial Institution (CDFI)
The Greater Minnesota Housing Fund (GMHF) is a Community Development Financial Institution (CDFI) that created the Small NOAH program to provide low-cost capital in the form of first mortgage, mezzanine and gap funding to small property owners to preserve unsubsidized affordable housing stock in communities throughout Minnesota. The Small NOAH … Read more >
Texas Housing Conservancy Fund Austin
Cluster 2 Cluster 4 Cluster 5Entities involved: Private Equity Fund
Administered by the Texas Housing Conservancy (TxHC), the Texas Housing Conservancy Fund is an open-ended social impact private equity fund for high-net-worth individuals, family offices, private foundations, institutional investors, Bank CRA programs, larger foundations and others. Unlike other impact investment funds, which invest in enterprises with social or environmental missions, … Read more >
NOAH Impact Fund Minneapolis, Saint Paul
Cluster 1 Cluster 2 Cluster 4 Cluster 5 Cluster 6Entities involved: Community Development Financial Institution (CDFI)
Greater Minnesota Housing Fund, a statewide Community Development Financial Institution (CDFI), officially launched the NOAH Impact Fund in June 2017 with $25 million from seven impact investors to acquire 1,000 units of rental housing and maintain affordable rents for 15 years. The NOAH Impact Fund partners with socially motivated investors … Read more >
Green Cost Share Minneapolis
Cluster 1 Cluster 2 Cluster 4Entities involved: City Government
The City of Minneapolis created the Green Cost Share connect property owners with a variety of energy savings programs including energy efficiency upgrades and solar installation. Multifamily rental property owners can apply for: The commercial and multifamily property owners with five units or more can apply for a City match … Read more >
Small and Medium Multifamily (SMMF) Loan Program Minneapolis
Cluster 1 Cluster 2 Cluster 4 Cluster 6Entities involved: City Government, Community Development Financial Institution (CDFI), Land Bank, Non-Profit Organization
Small and Medium Multifamily (SMMF) Loan Program is a partnership between the Land Bank Twin Cities, Inc. (“Land Bank”), Local Initiatives Support Corporation (“LISC”), and the City of Minneapolis. The goal of the program is to get community control over small-to medium multifamily (SMMF) buildings defined as 2-49 units in … Read more >
Amazon’s Housing Equity Fund Nashville, Seattle, Washington D.C.
Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5Entities 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 6Entities 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 >
The Housing Fund - Affordable Housing Financing Chattanooga, Clarksville, Knoxville, Memphis, Nashville
Cluster 4 Cluster 5 Cluster 6Entities involved: Community Development Financial Institution (CDFI)
The Housing Fund assists nonprofit and for-profit entities in the builder-developer community who are pursuing projects to help Tennessee’s low/moderate-income populations. Commercial-lending projects or partnerships can include a variety of uses or purposes, such as: • Land Acquisition • Infrastructure work to prepare a site for development • Vertical construction … Read more >
Housing Impact Fund (I & II) Charlotte
Cluster 4 Cluster 5 Cluster 6Entities involved: For-Profit Entity
Through financing provided through HIF, multifamily rental housing with below market rents are acquired by Ascent Housing, HIF has been paired with other financing tools, such as the City’s housing bond program, which amended in 2019 to support preservation, and requires the unit to maintain affordability for 80% of the … Read more >
Nashville NOAH Fund Nashville
Cluster 4Entities involved: Foundation, Lending Institution/Bank, Non-Profit Housing Developer
Regions Bank offered the $19.2 million loan for the two properties on a short-term, interest-only basis. The loan was made through the state Community Investment Tax Credit program, which gives the bank a tax credit in exchange for investing in low income housing. For the next few years, until it … Read more >
MSAs including Cluster 4
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