Boston Market Studies

Client

U. S. Department of Housing & Urban Development – Boston

Skills

Appraisal, Market Study – Affordable Housing

Project Description

Clarendon was awarded a contract with the Boston office of the U. S. Department of Housing and Urban Development (HUD) to provide Section 8 Rent Comparability Studies for the State of Massachusetts.

Section 8 laws and administrative procedures require HUD to obtain and review Rent Comparability Studies (RCS) when initially renewing most Section 8 contracts and when processing some rent increase using the Annual Adjustment Factors. The market rents resulting from these studies determine the rents owners can receive and, hence greatly influence whether an owner will renew and continue providing assisted housing or opt-out of the Section 8 contract and convert to unassisted, market rent housing. The market rents set in these studies also drive HUD’s outlays for Section 8 project-based subsidy.

Market Overview

The Metropolitan Boston area is the most intensively developed section of the State as well as the most populated area in New England. The Boston metropolitan area consists of 92 municipalities covering over 1,000 square miles in Eastern Massachusetts. In the New England Region historic employment growth in health care, information, communications and a range of business and professional services fueled the demand for housing goods and services.

The Boston apartment market is one of the top markets in the country, comprised of several geographic sub markets from Downtown Boston, Boston neighborhoods, Western suburbs to the South Shore. During the current cycle, all markets have generally experienced high rent growth, low vacancies and the resulting increases in competitive supply.