Cluster 5
Low
Suburbs of most metro areas
Rental deserts
Low/moderate income
35-44 years old
Bachelor's degree or higher
Single-family homes
Built after 2000
Low density & vacancy
New development of high density buildings
High-income suburbs with limited rental options, particularly affordable rental options. Most frequently found in the suburbs of most metro areas.
- Demand: This market type has low levels of renter households. Renters in this area are generally early middle-aged with higher levels of renters 35-44. Renters in this area also tend to have higher incomes with the highest level of renters earning 80% to 200% AMI and a high share of renters earning over 200% AMI. It has the lowest levels of low-income renters (less than 50% AMI). This market type has higher levels of white population.
- Supply: The rental stock was largely built between 1950 and 2000, and it has the lowest levels of rental housing built before WW2. Although renter levels are low, this area has the seen recent investment in new rental housing with the high levels of rental units in properties built since 2000 and a large increase in newly built rental properties. Single-family homes account for the largest share of rental units, but there was a large increase in rental units found in 50+ unit properties.
- Affordability: This market type generally has the worst affordability conditions of any area. It has the lowest levels of lower-cost rental units, and this share declined since 2012. This lack of affordability leads to a low share of renters who are lower-income renters, and therefore generally low levels of rental cost burden. Of the lower-income renters in this market type, the highest share are living in unaffordable units. This area also has the lowest levels of rental subsidy programs (HCV, Project Based Section 8, and Public Housing)
Programs active in Cluster 5
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 >
Rental Improvement Fund (RIF) Philadelphia
Cluster 1 Cluster 2 Cluster 3 Cluster 5 Cluster 6Entities 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 >
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 >
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 >
MSAs including Cluster 5
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