Rural Development Guaranteed Rural Rental Housing Program

Permanent loan option for the construction, acquisition or rehabilitation of rural multifamily properties through the United States Department of Agriculture’s (USDA) RD 538 program. The program is administered by the USDA’s Office of Rural Development (RD) and originated through private lenders.


  • Mitigate loan losses with 90% USDA guaranty
  • Certainty and speed of execution
  • Flexible loan amortization terms


  • Lenders approved by RD and Fannie Mae
  • Preservation transactions with rent subsidies
  • Minimum $6,500 per unit rehabilitation required


25 - 40 years.


25 - 40 years; fully amortizing or balloon structures permitted.

Interest Rate


Maximum LTV

90% (Public Entities/Nonprofits up to 97% subject to Fannie Mae approval).

Minimum DSCR



Lender recourse for losses not covered by RD’s guaranty.

Affordability Restrictions

Project averaged rent capped at 30% of Area Median Income, adjusted for family size.

Property Considerations

Eligible Rural Areas are determined by USDA RD.

RD loan application approved through the RD Notice of Funds Availability (NOFA) process.

Refinance transactions are not eligible.