Government Subsidized Multifamily Studies

Following is a synopsis of components typically included in a market feasibility study for government subsidized multifamily development. Most of the market studies we perform for government subsidized development are for RD (Rural Development, formerly FmHA) development. The following guidelines meet their criteria for market studies. For more detailed information about other government subsidized projects, please contact us.

Site Inspection

Each proposed site is personally inspected by a Danter Company field analyst. The site is inspected for the suitability for development as it relates to the market. A full area description is included identifying surrounding land uses, as well as proximity to area resident services.

Effective Market Area

The EMA, the area from which the project is expected to draw most of its support, is determined according to guidelines mandated by the Rural Economic and Community Development. The EMA includes the immediate population base and all or part of the surrounding rural periphery that does not compete with or contain any other community. The EMA often transcends township, county, but not state boundaries.

The study satisfies requirements for professional market studies as prescribed by RD in its Instruction 1944-E, Exhibit A-7.

100% Field Survey

A 100% field survey of modern apartment development within the EMA is conducted by our trained field analysts. The following information is identified for each community:

1. Number of units
2. Type of unit (garden/townhouse)
3. Unit mix
4. Rent
5. Vacancies
6. Unit amenities
7. Project amenities
8. Project type (market-rate/government subsidized)
9. Utilities
10. Year built/opened
11. Determination of Comparability Rating, an impartial apartment project rating based on a community's unit, project, and aesthetic amenities.

Conclusions

1. Identification of potential area support for both Interest Credit and Rental Assistance units by family and elderly occupancy based on demographic and economic characteristics of area population and existing modern apartment base
2. Identification of potential support levels for proposed development by unit mix, proposed Basic Rent, and Interest Credit/Rental Assistance mix
3. A comparison of proposed rent to expected market-driven rent at opening based on a Rent/Value Analysis

For more information on studies for government subsidized housing, please call Terry Hall at (614) 221-9096 during business hours (8 am to 5 pm) Eastern US time, or e-mail us at thall@danter.com.

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