New England Market Studies

Client

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

Skills

Appraisal, Market Study – Affordable Housing

Project Description

Clarendon was awarded a subcontract with the Boston office of the U. S. Department of Housing and Urban Development (HUD) to provide Section 8 Rent Comparability Studies in New England. The states covered include: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.

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

New England is comprised of six states in the northeast: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont. Boston is the largest city and economic center of the region, driving employment growth in health care, information, communications and a range of business and professional services.

Apartment market conditions vary throughout the region from balanced to tight, with most markets experiencing increased vacancy due to the over 16,000 apartments completed in the region during the 12 month period ending in September 2016. There are currently 30,500 under construction, up from 27,100 units a year ago.