Data on the extent of housing-cost burden shows that relatively fewer households in small apartment properties are impacted severely by rental expenses.

1. Access the Industry’s Only Multifamily Small Balance
Research and Insights at arbor.com/blog.
BY ARBOR
Source: arbor.com/blog/fewer-small-apartment-housing-cost-burden
Small balance multifamily loans are typically between $1 million and $5 million. Chandan
Economics defines small-cap properties as 5 to 19 units, mid-cap properties as 20 to 50
units, and large-cap properties as larger than 50 units. Both small-cap and mid-cap
properties can fall into the small balance spectrum.
All data is sourced from the American Community Survey (ACS), unless otherwise stated.
ACS statistics are sample-based estimates of the compositional profile of the total
population in the given year of data collection, and include a margin of error.
Moderately and Severely Burdened Households within Asset Class: 2014-16
Improving Housing Cost Affordability Picture Across Asset Class
• The share of households classified as burdened declined by 1.8 percentage points
in small apartment properties, compared to 0.9% in large buildings, and 2.3% for
single-family rentals.
Not Burdened Moderately Burdened Severely Burdened
Change in Percentage Points
Single-Family
Rentals
Source: Chandan Economics, American Community Survey, 2016
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
Duplex-Quadruplex Small Asset
Multifamily
Large Asset
Multifamily
Fewer Small Asset Households Impacted Adversely
• 23.4% of households in small asset multifamily were ‘moderately burdened,’ while
another 27.4% share were ‘severely burdened.’
• Single-family rentals and large asset multifamily registered cost burden rates of
52.0% and 53.1%, respectively.
Moderately and Severely Burdened Households within Asset Class: 2016
Not Burdened Moderately Burdened Severely Burdened
Single-Family
Rentals
Source: Chandan Economics, American Community Survey, 2016
50%
40%
30%
20%
10%
0%
Duplex-Quadruplex Small Asset
Multifamily
Large Asset
Multifamily
Percent Share of Households within Asset Class
Fewer Households
Cost Burdened in
Small Apartment
Assets
Arbor Realty Trust
Data on the extent of housing-cost burden shows that relatively fewer households in
small apartment properties are impacted severely by rental expenses.
Using the HUD definition of cost burden, households that spend between 30% and
50% of their household income on housing costs are classified as ‘Moderately
Burdened.’ Those spending over 50% are categorized as ‘Severely Burdened.’