RubinBrown Apartment Stats 2023

’23

APARTMENT STATS

A publication by RubinBrown LLP

RubinBrown is pleased to present the 2023 Apartment Statistical Analysis, an annual survey compiled by the Real Estate Services Group. Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States. The accompanying statistical information includes operational data for 2022 and represents approximately 1,100 apartment projects in roughly 40 states. While these averages are representative of a smaller pool of projects, the trends are usually consistent with those experienced at the national level. If you have questions about the content of this publication, please contact us (see page 17 for contact information).

Contents 1

Executive Summary

3 4 8

Comparison of Operations

Government Assisted

www.RubinBrown.com

Government Assisted by Region

10 12 14 16

Government Assisted by Project Size

Low Income Tax Credit Projects

Disclaimer: Apartment Stats, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matter covered. Although prepared by professionals, its content should not be construed as the rendering of advice regarding specific situations. If accounting, legal, or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions.

Market Rate

RubinBrown Real Estate Services Group

ii

EXECUTIVE SUMMARY

The year 2022 witnessed a complex landscape in the multifamily affordable housing market, marked by a combination of persistent challenges and emerging trends. As affordable housing remained a pressing concern for communities across the globe, various factors influenced the market’s dynamics, including supply and demand imbalances, rental rate fluctuations, and the impact of economic forces. This executive summary delves into the different aspects of the multifamily affordable housing market during 2022, incorporating insights from FreddieMac’s Midyear Outlook. Supply and Demand Dynamics One of the overarching issues that characterized the multifamily affordable housing market in 2022 was the persistent supply and demand imbalance. As demand for affordable housing continued to outpace supply, rental costs surged in many regions. According to data from the U.S. Census Bureau, the demand for rental units grew by approximately 5% compared to the previous year, while the supply of affordable units increased by only 2%. This discrepancy contributed to a 3% rise in average rental rates for The rental rates in the multifamily affordable housing market during 2022 exhibited a mixed picture across different regions. Major urban centers experienced varying degrees of rent growth, with some cities witnessing rent increases of up to 8%, driven by the return of residents to city life post-pandemic. However, other regions observed more modest growth rates due to a combination of remote work trends and tenant migration to suburban or smaller-town locales. This diversification in rental rate changes highlighted the nuanced impact of geographical factors on the affordable housing market. Vacancy Rates & FreddieMac’s Midyear Outlook The issue of vacancy rates played a significant role in shaping the affordable housing market’s dynamics in 2022. According to FreddieMac’s Midyear Outlook, vacancy rates in the multifamily affordable housing sector experienced a slight uptick of 1%, compared to the previous year. multifamily affordable housing. Rental Rate Fluctuations

This increase was attributed to a combination of factors, including new construction projects entering the market and tenants’ changing preferences post-pandemic. FreddieMac’s Outlook also highlighted the critical role of government policies and initiatives in shaping the affordable housing landscape. The report underscored that while several jurisdictions had implemented measures to encourage the development of affordable housing, the pace of construction remained insufficient to meet the demand. Additionally, the report emphasized the need for collaborative efforts between public and private sectors to bridge the affordability gap. Innovative Solutions and Community Impact Amidst these challenges, 2022 saw the rise of innovative solutions aimed at addressing the affordable housing crisis. Modular construction gained prominence as a method to expedite the development of affordable units. This approach not only streamlined construction processes but also contributed to cost savings, allowing developers to offer more affordable rental rates. Moreover, socially responsible investors and developers played a pivotal role in supporting projects with a focus on affordability and community impact. Initiatives such as mixed-income housing developments, which combine market-rate and affordable units, aimed to create diverse and vibrant communities while addressing the affordability challenge. Conclusion The multifamily affordable housing market in 2022 was characterized by a delicate interplay of supply and demand, rental rate fluctuations, and ongoing efforts to bridge the affordability gap. The affordable housing market continued to struggle with inadequate supply and a pressing need for more accessible housing options, prompting various stakeholders to explore new avenues for creating affordable housing opportunities.

Executive Summary

1

COMPARISON OF OPERATIONS

Government Assisted

Market Rate

Total Number of Projects

1102

11

Average Project Age in Years Average Number of Units

9.84

12.55

107

164

Averages Per Unit: Monthly Rent

$1,155

$1,206

Square Feet

901

1,087

Rooms

4.45

4.19

Economic Occupancy

92.4%

96.8%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

37.0%

43.7%

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$13,860

$15.38 (1.16) (0.32) (0.18)

100.0%

$14,469

$13.31 (0.43) (0.20) (0.98)

100.0%

(1,048)

-7.6% -2.1% -1.2% 89.2%

(465) (214)

-3.2% -1.5% -7.3% 88.0%

Collection Loss

(292) (161)

(1,060)

Concession Loss

Rent Collected Other Income Total Income

12,359

13.72

12,730

11.71

803

0.89

5.8%

1,340

1.23

9.3%

$13,162

$14.61

95.0%

$14,070

$12.94

97.2%

Expenses Salaries and Personnel

$1,382

$1.53

10.0% 8.6% 0.8% 4.3% 8.5% 0.5% 0.5% 0.9% 0.7% 0.3% 0.4% 0.3% 4.3% 6.5% 2.3% 11.0% 59.8%

$1,384

$1.27

9.6% 3.2% 1.7% 4.0% 7.3% 1.3% 0.9% 1.4% 0.7% 0.5% 0.6% 0.6% 4.0% 7.3% 0.8%

Administrative

1,191

1.32 0.12 0.66 1.30 0.07 0.08 0.14 0.11 0.05 0.07 0.04 1.70 0.66 0.99 0.35

468 245 573 186 133 195 100

0.43 0.23 0.53 0.97 0.17 0.12 0.18 0.09 0.07 0.08 0.08 1.47 0.53 0.97 0.11

Marketing

112 596

Management Fees

Utilities

1,173

1,052

Carpeting

66 72

Painting

Landscaping

125

HVAC

98 41 62 40

Appliances

71 84 86

Plumbing Electrical

Other Repairs and Services

1,530

1,599

11.0%

Insurance

598 895 314

577

Real Estate Taxes

1,050

120

Other Taxes

Total Expenses

$8,295

$9.21

$7,923

$7.29

54.8%

Net Operating Income Before Debt Service and Depreciation

$4,867

$5.40

35.1%

$6,147

$5.65

42.4%

Capital Expenditures

$797

$0.89

5.8%

$173

$0.16

1.2%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

Comparison of Operations

3

GOVERNMENT ASSISTED

2022

2021

2020

Total Number of Projects

1102

939

902

Average Number of Units

107

106

109

Averages Per Unit: Monthly Rent

$1,155

$1,077

$978

Square Feet

901

905

907

Rooms

4.45

4.43

4.48

Economic Occupancy

92.4%

93.0%

92.8%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

37.0%

40.9%

41.8%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$13,860

$15.38 (1.16) (0.32) (0.18)

100.0%

$12,925

$14.28 (1.00) (0.28) (0.30)

100.0%

$11,740

$12.94 (0.93) (0.18) (0.07)

100.0%

(1,048)

-7.6% -2.1% -1.2% 89.2%

(909) (250) (272)

-7.0% -1.9% -2.1% 89.0%

(844) (164)

-7.2% -1.4% -0.5% 90.9%

Collection Loss

(292) (161)

Concession Loss

(62)

Rent Collected

12,359

13.72

11,494

12.70

10,670

11.76

Other Income

803

0.89

5.8%

1,101

1.22

8.5%

450

0.50

3.8%

Total Income

$13,162

$14.61

95.0%

$12,595

$13.92

97.5%

$11,120

$12.26

94.7%

Expenses Salaries and Personnel

$1,382

$1.53

10.0%

$1,243

$1.37

9.6% 6.8% 0.7% 4.7% 7.7%

$1,178

$1.30

10.0%

Administrative

1,191

1.32 0.12 0.66 1.30

8.6% 0.8% 4.3% 8.5%

873

0.96 0.10 0.67 1.10

789

0.87 0.09 0.59 1.03

6.7% 0.7% 4.6% 8.0%

Marketing

112 596

92

77

Management Fees

602 994

539 937

Utilities

1,173

All Repair, Maintenance and Contract Services

2,034

2.26

14.7%

1,899

2.10

14.7%

1,441

1.59

12.3%

Insurance

598 895 314

0.66 0.99 0.35

4.3% 6.5% 2.3%

540 834 364

0.60 0.92 0.40

4.2% 6.5% 2.8%

426 753 328

0.47 0.83 0.36

3.6% 6.4% 2.8%

Real Estate Taxes

Other Taxes

Total Expenses

$8,295

$9.21

59.8%

$7,441

$8.22

57.7%

$6,468

$7.13

55.1%

Net Operating Income Before Debt Service and Depreciation

$4,867

$5.40

35.1%

$5,154

$5.70

39.8%

$4,652

$5.13

39.6%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2023

4

AVERAGE MONTHLY RENT PER UNIT

2019

2018

$1,300

787

736

$1,155

$1,200

$1,077

108

107

$1,100

$834

$978

$1,000

$865

$834

$865

$834

$900

910

908

4.47

4.48

$800

2022

2021

2020

2019

2018

92.1%

92.0%

38.8%

34.9%

ECONOMIC OCCUPANCY

100%

A

B

C

A

B

C

90%

80%

$10,354

$11.38 (0.90) (0.14) (0.06)

100.0%

$10,010

$11.02 (0.88) (0.15) (0.07)

100.0%

70%

(822) (126)

-7.9% -1.2% -0.5% 90.4%

(801) (137)

-8.0% -1.4% -0.7% 89.9%

60%

(55)

(68)

50%

9,351

10.28

9,004

9.92 0.73

40%

611

0.67

5.9%

667

6.7%

30%

$9,962

$10.95

96.3%

$9,671

$10.65

96.6%

20%

10%

0%

92.4%

93.0%

92.0%

92.8%

92.1%

$1,143

$1.26

11.0%

$1,117

$1.23

11.2%

624

0.69 0.07 0.54 1.01

6.0% 0.6% 4.7% 8.8%

735

0.81 0.09 0.54 1.02

7.3% 0.8% 4.9% 9.3%

2022

2021

2020

2019

2018

66

82

487 915

494 928

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,545

1.70

14.9%

1,595

1.75

15.9%

$5.40 $15.38

403 599 313

0.44 0.66 0.34

3.9% 5.8% 3.0%

360 703 283

0.40 0.77 0.31

3.6% 7.0% 2.8%

2022

$5.70 $14.28

2021

$5.13 $12.94

$6,095

$6.70

58.7%

$6,297

$6.93

62.9%

2020

$4.25 $11.38

2019

$3,867

$4.25

37.6%

$3,374

$3.72

33.7%

$3.72 $11.02

2018

GROSS POTENTIAL RENT

NET OPERATING INCOME

Government Assisted

5

GOVERNMENT ASSISTED

EXPENSE TRENDS PER UNIT

$1,382

2022

$1,243

2021

Salaries and Personnel

$1,178

2020

$1,143

2019

2018

$1,117

$1,303

$965

Administrative and Marketing

$866

$690

$817

$2,034

$1,899

Contract Services and Repairs & Maintenance

$1,441

$1,545

$1,595

$1,807

$1,738

Taxes and Insurance

$1,507

$1,315

$876 $1,346

$0

$250

$500

$750

$1,000 $1,250 $1,500

$1,750 $2,000

RubinBrown Apartment Stats 2023

6

GOVERNMENT ASSISTED BY REGION

North

East/Northeast

Midwest

South/Southeast

Total Number of Projects

39

127

635

174

Average Project Age In Years Average Number of Units

14.56

11.32

9.90

8.15

113

122

103

102

Averages Per Unit: Monthly Rent

$1,159

$1,110

$1,011

$1,163

Square Feet

939

978

839

958

Rooms

4.36

4.95

4.25

5.21

Economic Occupancy

91.5%

91.6%

92.1%

92.3%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

37.9%

38.8%

33.1%

40.3%

A

B

C

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$13,910 $14.82 100.0% $13,319 $13.62 100.0% $12,137 $14.47 100.0% $13,959 $14.56 100.0%

(1,179) (1.26) (304) (0.32) (42) (0.05)

-8.5% -2.2% -0.3% 89.0%

(1,113) (1.14) (253) (0.26) (77) (0.08)

-8.4% -1.9% -0.6% 89.2%

(956) (1.14) (248) (0.30) (75) (0.09)

-7.9% -2.0% -0.6% 89.5%

(1,075) (1.12) (444) (0.46) (230) (0.24)

-7.7% -3.2% -1.6% 87.5%

Collection Loss

Concession Loss

Rent Collected

12,385

13.19

11,877

12.14

10,858

12.94

12,210

12.74

1,043

1.11

7.5%

623

0.64

4.7%

738

0.88

6.1%

953

0.99

6.8%

Other Income

95.5%

$13.73

94.3%

$13,428 $14.30

96.5% $12,500 $12.78

93.8%

$11,596

$13.82

$13,163

Total Income

Expenses Salaries and Personnel

$1,190

$1.27

8.6% 6.2% 1.0% 4.9% 8.8% 0.8% 0.6% 0.9% 0.6% 0.2% 0.3% 0.3% 4.2% 8.8% 2.6%

$1,070

$1.09

8.0% 9.7% 0.4% 3.9% 8.8% 0.8% 0.5% 0.8% 0.8% 0.3% 0.5% 0.3% 9.8% 4.1% 6.9% 2.0%

$1,315

$1.57

10.8% 9.3% 0.9% 4.5% 8.6% 0.4% 0.5% 0.8% 0.7% 0.3% 0.4% 0.2% 4.2% 7.6% 2.5% 12.1%

$1,462

$1.53

10.5%

Administrative

864 134 686

0.92 0.14 0.73 1.31 0.12 0.09 0.13 0.08 0.02 0.04 0.04 1.67 0.62 1.30 0.39

1,292

1.32 0.06 0.54 1.20 0.10 0.06 0.10 0.10 0.05 0.06 0.04 1.33 0.55 0.93 0.27

1,123

1.34 0.13 0.66 1.24 0.06 0.08 0.12 0.10 0.04 0.06 0.03 1.75 0.60 1.11 0.36

1,008

1.05 0.11 0.68 1.14 0.08 0.10 0.21 0.12 0.07 0.09 0.06 1.37 0.78 0.56 0.27

7.2% 0.7% 4.7% 7.8% 0.6% 0.7% 1.4% 0.9% 0.5% 0.6% 0.4% 9.4% 5.3% 3.8% 1.8%

Marketing

58

109 550

104 650

Management Fees

524

Utilities

1,228

1,174

1,043

1,093

Carpeting

117

102

50 66 97 85 33 50 26

78 92

Painting

84

62

Landscaping

120

102 101

200 120

HVAC

77 22 41 41

Appliances

45 60 37

68 84 59

Plumbing Electrical

Other Repairs and Services

1,569

11.3%

1,304

1,469

1,311

Insurance

586

541 914 260

504 927 305

743 534 257

Real Estate Taxes

1,221

363

Other Taxes

Total Expenses

$8,343

$8.89 60.0%

$7,646

$7.82 57.4%

$7,752

$9.24 63.9%

$7,863

$8.20 56.3%

Net Operating Income Before Debt Service & Depreciation

$5,085

$5.42 36.5%

$4,854

$4.96 36.4%

$3,844

$4.58 31.7%

$5,300

$5.53 38.0%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2023

8

MONTHLY RENT PER UNIT

South/Southwest

West/Northwest

38

55

$1,159

$1,110

9.84

8.09

129

99

$1,700

$1,011

$1,175

$1,700

$1,175

$1,163

929

694

3.98

3.35

90.5%

95.9%

28.2%

39.8%

A

B

C

A

B

C

NET OPERATING INCOME PER SQUARE FOOT

$14,104 $15.19 100.0% $20,401 $29.38 100.0% (1,346) (1.45) -9.5% (839) (1.21) -4.1% (287) (0.31) -2.0% (356) (0.51) -1.7% (50) (0.05) -0.4% (30) (0.04) -0.1% 12,421 13.37 88.1% 19,176 27.61 94.0% 1,044 1.12 7.4% 535 0.77 2.6% $13,465 $14.50 95.5% $19,711 $28.38 96.6%

$5.41

$4.96

$11.29

$4.58

$4.09

$5.53

$2,086

$2.25

14.8%

$1,875

$2.70

9.2% 6.0% 0.3% 4.4% 0.3% 0.2% 0.9% 0.4% 0.3% 0.5% 0.2% 11.0% 14.9%

1,246

1.34 0.25 0.55 1.40 0.12 0.11 0.16 0.12 0.05 0.10 0.10 1.49 0.66 1.33 0.39

8.8% 1.7% 3.6% 9.2% 0.8% 0.7% 1.1% 0.8% 0.3% 0.6% 0.6% 9.8% 4.3% 8.7% 2.6%

1,231

1.77 0.09 1.28 3.23 0.09 0.06 0.27 0.10 0.10 0.15 0.06 4.39 1.25 0.73 0.83

233 514

63

888

ECONOMIC OCCUPANCY

1,297

2,246

114 102 151 116

64 38

91.5%

91.6%

188

95.9%

73 67

92.1%

42 89 91

90.5%

92.3%

103

41

1,386

3,050

611

866 506 576

4.2% 2.5% 2.8%

1,231

361

$9,670 $10.41

68.6% $11,875 $17.11

58.2%

North

West/Northwest

South/Southeast East/Northeast

$3,795

$4.09 26.9%

$7,836 $11.27 38.4%

South/Southwest

Midwest

Government Assisted

9

GOVERNMENT ASSISTED BY PROJECT SIZE

0-50 Units

51-100 Units

101-150 Units

151-200 Units

Over 200 Units

Total Number of Projects

76

114

98

32

31

Average Project Age In Years Average Number of Units

12.67

15.03

16.97

15.56

15.35

36

77

121

175

270

Averages Per Unit: Monthly Rent

$874

$915

$978

$910

$918

Square Feet

987

883

897

919

969

Rooms

4.94

4.17

4.27

4.49

4.77

Economic Occupancy

93.4%

91.2%

89.8%

92.8%

93.4%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

21.1%

20.8%

23.8%

25.0%

33.7%

A

B

A

B

A

B

A

B

A

B

Revenues Gross Potential Rent Less: Vacancy Loss

$10,544 $10.69 (697) (0.71) (243) (0.25) (136) (0.14)

$10,977 $12.43 (970) (1.10) (239) (0.27)

$11,735 $13.08 (1,194) (1.33)

$10,919 $11.88 (787) (0.86) (326) (0.35)

$11,012 $11.37 (730) (0.75) (303) (0.31)

Collection Loss

(339) (0.38)

(67) (0.08)

(54) (0.06)

(26) (0.03)

(31) (0.03)

Concession Loss

Rent Collected

9,468

9.59 0.69

9,701

10.99

10,149

11.32

9,780

10.64

9,948

10.27

Other Income

681

655

0.74

622

0.69

398

0.43

631

0.65

Total Income

$10,149 $10.28

$10,356 $11.73

$10,771 $12.01

$10,178 $11.07

$10,579 $10.92

Expenses Salaries and Personnel

$1,346

$1.36

$1,480

$1.68

$1,594

$1.78

$1,442

$1.57

$1,118

$1.15

Administrative

855

0.87 0.04 0.62 1.06 0.07 0.12 0.27 0.13 0.05 0.10 0.06 1.42 0.94 0.71 0.30

1,037

1.17 0.08 0.64 1.30 0.12 0.09 0.18 0.16 0.06 0.09 0.09 1.65 0.88 0.70 0.39

759

0.85 0.07 0.67 1.41 0.17 0.08 0.17 0.12 0.07 0.09 0.04 1.71 0.76 0.81 0.37

778

0.85 0.05 0.59 1.34 0.13 0.08 0.11 0.13 0.06 0.08 0.07 1.52 0.71 0.71 0.32

612

0.63 0.06 0.52 1.04 0.12 0.09 0.12 0.12 0.03 0.05 0.03 1.40 0.59 1.00 0.27

Marketing

39

67

58

42

54

Management Fees

616

566

597

538

508

Utilities

1,049

1,144

1,267

1,229

1,006

Carpeting

65

107

152

123

113

Painting

123 262 132

75

70

72

91

Landscaping

160 142

152 106

106 123

120 119

HVAC

Appliances

53 96 58

55 82 80

65 81 33

58 71 61

31 51 31

Plumbing Electrical

Other Repairs and Services

1,403

1,460

1,533

1,399

1,361

Insurance

924 699 294

779 620 345

678 731 336

650 651 291

568 969 261

Real Estate Taxes

Other Taxes

Total Expenses

$8,014

$8.12

$8,199

$9.29

$8,212

$9.13

$7,634

$8.29

$7,013

$7.23

Net Operating Income Before Debt Service and Depreciation

$2,135

$2.16

$2,157

$2.44

$2,559

$2.86

$2,544

$2.78

$3,566

$3.69

Capital Expenditures

$1,592

$1.61

$698

$0.71

$531

$0.54

$871

$0.88

$801

$0.81

A = Dollars per unit, per year

B = Dollars per square foot, per year

RubinBrown Apartment Stats 2023

10

LOW INCOME TAX CREDIT PROJECTS

2022

2021

2020

Total Number of Projects Average Number of Units

1032

865

808

108

107

110

Averages Per Unit: Monthly Rent

$1,166

$1,084

$984

Square Feet

912

917

920

Rooms

4.46

4.44

4.48

Economic Occupancy

92.5%

93.1%

92.9%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

37.7%

41.3%

42.3%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$13,993

$15.34 (1.16) (0.31) (0.18)

100.0%

$13,007

$14.19 (0.98) (0.27) (0.32)

100.0%

$11,804

$12.84 (0.92) (0.17) (0.07)

100.0%

(1,054)

-7.5% -2.0% -1.2% 89.2%

(898) (248) (290)

-6.9% -1.9% -2.2% 89.0%

(843) (160)

-7.1% -1.4% -0.5% 91.0%

Collection Loss

(283) (167)

(64)

Concession Loss

Rent Collected

12,489

13.69

11,571

12.62

10,737

11.68

807

0.88

5.8%

1,123

1.23

8.6%

456

0.50

3.9%

Other Income

$13,296

$14.58

95.0%

$12,694

$13.85

97.6%

$11,193

$12.18

94.9%

Total Income

Expenses Salaries and Personnel

$1,369

$1.50

9.8% 8.5% 0.8% 4.2% 8.3%

$1,235

$1.35

9.5% 6.8% 0.7% 4.6% 7.6%

$1,173

$1.28

9.9% 6.7% 0.7% 4.6% 7.9%

Administrative

1,187

1.30 0.13 0.65 1.28

887

0.97 0.11 0.66 1.08

796

0.87 0.09 0.59 1.02

Marketing

114 593

97

82

Management Fees

603 986

538 935

Utilities

1,163

All Repair, Maintenance and Contract Services

2,032

2.23

14.5%

1,890

2.06

14.5%

1,411

1.53

12.0%

Insurance

595 908 314

0.65 1.00 0.34

4.3% 6.5% 2.2%

533 858 362

0.58 0.94 0.40

4.1% 6.6% 2.8%

419 776 325

0.46 0.84 0.35

3.6% 6.6% 2.8%

Real Estate Taxes

Other Taxes

Total Expenses

$8,275

$9.07

59.1%

$7,451

$8.15

57.2%

$6,455

$7.03

54.8%

Net Operating Income Before Debt Service and Depreciation

$5,021

$5.51

35.9%

$5,243

$5.70

40.4%

$4,738

$5.15

40.1%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2023

12

AVERAGE MONTHLY RENT PER UNIT

2019

2018

$1,300

666

595

$1,166

107

109

$1,200

$1,084

$1,100

$858

$833

$984

$1,000

908

913

$858

4.49

4.47

$900

$833

$800

92.2%

92.7%

2022

2021

2020

2019

2018

38.6%

35.0%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$10,483

$11.55 (0.90) (0.14) (0.07)

100.0%

$9,996

$10.95 (0.80) (0.15) (0.08)

100.0%

80%

(819) (125)

-7.8% -1.2% -0.6% 90.4%

(732) (134)

-7.3% -1.3% -0.7% 90.6%

70%

(62)

(74)

60%

9,477

10.44

9,056

9.92 0.72

50%

593

0.65

5.7%

655

6.6%

40%

$10,070

$11.09

96.1%

$9,711

$10.64

97.2%

30%

20%

10%

$1,148

$1.26

11.0%

$1,104

$1.21

11.0%

0%

92.2%

93.1%

92.9%

92.5%

92.7%

622

0.69 0.08 0.54 1.02

5.9% 0.7% 4.7% 8.8%

700

0.77 0.10 0.55 1.01

7.0% 0.9% 5.0% 9.2%

2022

2021

2020

2019

2018

72

89

493 921

499 924

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,563

1.72

14.9%

1,591

1.74

15.9%

411 630 322

0.45 0.69 0.35

3.9% 6.0% 3.1%

364 756 286

0.40 0.83 0.31

3.6% 7.6% 2.9%

$5.51 $15.34

2022

$5.70 $14.19

2021

$6,182

$6.80

59.0%

$6,313

$6.91

63.2%

$5.15 $12.84

2020

$3,888

$4.29

37.1%

$3,398

$3.73

34.0%

$4.29 $11.55

2019

$3.73 $10.95

2018

GROSS POTENTIAL RENT

NET OPERATING INCOME

Low Income Tax Credit Projects

13

MARKET RATE

2022

2021

2020

Total Number of Projects Average Number of Units

11

12

10

164

164

164

Averages Per Unit: Monthly Rent

$1,206

$1,191

$1,102

Square Feet

1,087

1,087

1,087

Rooms

4.19

4.19

4.19

Economic Occupancy

96.8%

96.5%

98.6%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

43.7%

46.8%

45.0%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$14,469

$13.31 (0.43) (0.20) (0.98)

100.0%

$14,292

$13.15 (0.46) (0.12) (0.88)

100.0%

$13,227

$12.17 (0.17) (0.01) (0.03)

100.0%

(465) (214)

-3.2% -1.5% -7.3% 88.0%

(501) (130) (958)

-3.5% -0.9% -6.7% 88.9%

(188)

-1.4% -0.1% -0.3% 98.2%

Collection Loss

(15) (34)

(1,060)

Concession Loss

Rent Collected

12,730

11.71

12,703

11.69

12,990

11.96

1,340

1.23

9.3%

1,307

1.20

9.1%

205

0.19

1.6%

Other Income

$14,070

$12.94

97.2%

$14,010

$12.89

98.0%

$13,195

$12.15

99.8%

Total Income

Expenses Salaries and Personnel

$1,384

$1.27

9.6% 3.2% 1.7% 4.0% 7.3%

$1,346

$1.24

9.4% 3.1% 1.3% 4.0% 7.7%

$1,264

$1.16

9.6% 3.1% 2.1% 4.3% 8.1%

Administrative

468 245 573

0.43 0.23 0.53 0.97

445 183 568

0.41 0.17 0.52 1.01

407 271 570

0.37 0.25 0.52 0.98

Marketing

Management Fees

Utilities

1,052

1,103

1,065

All Repairs and Maintenance and Contract Services

2,455

2.26

17.0%

2,033

1.87

14.2%

1,866

1.72

14.1%

Insurance

577

0.53 0.97 0.11

4.0% 7.3% 0.8%

478

0.44 1.05 0.15

3.3% 8.0% 1.1%

434

0.40 1.12 0.14

3.3% 9.2% 1.2%

Real Estate Taxes

1,050

1,142

1,221

120

161

157

Other Taxes

Total Expenses

$7,923

$7.29

54.8%

$7,459

$6.86

52.1%

$7,254

$6.65

55.0%

Net Operating Income Before Debt Service and Depreciation

$6,147

$5.65

42.4%

$6,551

$6.03

45.9%

$5,941

$5.50

44.8%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2023

14

AVERAGE MONTHLY RENT PER UNIT

2019

2018

$1,383

$1,400

12

33

164

198

$1,300

$1,206

$1,191

$1,200

$1,102

$1,092

$1,092

$1,383

$1,100

1,087

835

4.19

4.03

$1,000

$900

98.7%

89.5%

2022

2021

2020

2019

2018

45.9%

50.3%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$13,101

$12.05 (0.16) (0.02) (0.04)

100.0%

$16,598

$19.88 (2.09) (0.24) (0.10)

100.0% -10.5% -1.2% -0.5% 87.8%

80%

(172)

-1.3% -0.2% -0.3% 98.2%

(1,746)

70%

(24) (42)

(201)

60%

(81)

12,863

11.83

14,570

17.45

50%

198

0.18

1.5%

1,123

1.34

6.8%

40%

$13,061

$12.01

99.7%

$15,693

$18.79

94.5%

30%

20%

10%

$1,319

$1.21

10.1%

$934

$1.12

5.6% 4.7% 1.8% 3.9% 5.3%

0%

92.1% 96.8%

90.0% 96.5%

89.1% 98.6%

90.8% 98.7%

88.6% 89.5%

318 266 549

0.29 0.24 0.50 0.96

2.4% 2.0% 4.2% 8.0%

788 301 648 883

0.94 0.36 0.78 1.06

2022

2021

2020

2019

2018

1,046

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,979

1.82

15.1%

1,791

2.15

10.8%

392

0.36 1.06 0.05

3.0% 8.8% 0.4%

325

0.39 2.24 0.30

2.0%

$5.65 $13.31

1,152

1,871

11.3%

2022

51

254

1.5%

$6.03 $13.15

2021

$7,072

$6.49

54.0%

$7,795

$9.34

47.0%

$5.50 $12.17

2020

$5,989

$5.52

45.7%

$7,898

$9.45

47.6%

$5.52 $12.05

2019

$9.45 $19.88

2018

NET OPERATING INCOME

GROSS POTENTIAL RENT

Market Rate

15

RUBINBROWN REAL ESTATE SERVICES GROUP

Affordable Housing This complex and highly regulated industry has been one that we have focused on since the early days of HUD and the advent of the federal low-income housing tax credit program. Historic Tax Credit Services Our team has extensive experience with consulting on historic rehabilitation projects across the country. New Markets Tax Credit Services In addition to initial program guidance and consulting, our experts can help you with NMTC application assistance. Opportunity Zones This incentive program was created by the Tax Cuts & Jobs Act of 2017 and is designed to bring growth to communities across the country. Our team of opportunity zone experts can help guide you through the complexities of the program by helping with transaction structuring, compliance, tax and accounting. Renewable Energy There are many new financial incentives for companies in the renewable energy sector. We can help you sort through the opportunities and provide financial guidance to move your businesses forward.

For more than 30 years, RubinBrown’s Real Estate Services Group has developed a strong reputation nationally as a leader in accounting and advisory services. Today, the group provides specialized services to real estate entities from coast to coast. RubinBrown’s Real Estate Services Group provides a full range of assurance, tax, business planning and consulting services to:

· Investment funds · Real estate partnerships · Developers

· Management companies · Governmental agencies · Syndicators and investors · Financial institutions · Construction-related companies

Through the years, our clients have grown to depend on our expertise in five key areas of the real estate sector including affordable housing, historic tax credit services, new markets tax credit services, opportunity zones and renewable energy.

RubinBrown Apartment Stats 2023

16

RubinBrown Real Estate Services Group’s services include:

Tim Anderson, CPA Partner | St. Louis 314.678.3545 tim.anderson@rubinbrown.com Bryan Keller, CPA, CGMA Partner-In Charge |St. Louis 314.290.3341 bryan.keller@rubinbrown.com

· Transaction and tax consulting services · Assurance and accounting services · Financial projections · Complex deal structuring · Capital adjuster calculations · Cost certifications

· Affordable Housing consulting and compliance · Historic Tax Credit consulting and compliance · New Markets Tax Credit consulting and compliance · Renewable Energy consulting and compliance · Opportunity Zone consulting and compliance · HUD audit and consulting services · Deal exit consulting and troubled project workouts · Nonprofit consulting and compliance · Capital asset segregation analysis · Sales and Use tax consulting · Business valuations and appraisals · Design and evaluation of financial reporting and internal control systems

Jeff Cunningham, CPA Partner | Denver 303.952.1257 jeffrey.cunningham@rubinbrown.com Chris Langley, CPA Partner | Chicago 847.972.5964 chris.langley@rubinbrown.com

RubinBrown Real Estate Services Group

17

1.800.678.3134 www.RubinBrown.com

@RubinBrown RubinBrown LLP

Founded in 1952, RubinBrown’s team members establish best practices within specific industry segments and work to serve the community both inside and outside the workplace. RubinBrown’s mission is to help clients build and protect value, while at all times honoring the responsibility to serve the public interest.

RubinBrown is also an independent member of Baker Tilly International, a high-quality, dedicated network of 126 independent firms in 147 countries.