Income Based Rent/New Development

[Logan Pourbaix]

Hey Bp! 
I have a strong background is new development. (SGL Family, Small Multifamily/duplex triplex) I’m interested in beginning to branch into some larger development projects. (15-20 units) With rising construction costs and number of units wrapping you into commercial style loans, Im struggling to make the numbers on a project like this work. When I look around at some of the bigger developments in my area by large development firms(50-100 units) I find that the rents on these complex are largely based on “income”. Which tells me that there is some type of government assistance that makes up the difference between what the tenant pays and the developer collects monthly. These said complexes are new and in great areas so I do not see them being section 8 or anything along those lines, but I don’t have any experience with any type of rent assistance programs. Just curious if anyone knows what programs or agencies these larger developers use to bridge the gap between new development costs and a descent rate of rate of turn. Any advice appreciated, thanks!