Assessing the Market Rate Affordable Multifamily Sector

In setting the 2021 multifamily loan purchase caps for the GSEs at $70 million each, FHFA required that 50 percent of the units acquired by Fannie Mae be used for “mission-driven” affordable housing, defined as units whose rents are affordable to tenants at or below 80 percent of area median income (AMI). Fannie Mae also defines affordability by incorporating the U.S. Department of Housing and Urban Development (HUD) standard; namely, an apartment is affordable if a potential renter household would not have to pay more than 30 percent of its household income on rent and utilities.

Read the May 2021 Market Commentary