Freddie Mac | How Big a Difference Do Restricted Rents Make?
Freddie Mac has published new research illustrating the significant financial savings Housing Credit tenants are able to achieve compared to low-income households living in comparable market-rate rental housing. Freddie Mac looked at trends in rent levels in nine metropolitan areas across the country between 2012 and 2017, comparing the average market-rate rent in each of these areas to the 60 percent of Area Median Income (AMI) Housing Credit rent limit for a two-bedroom apartment. While the average Housing Credit apartment was only modestly more affordable than the average market-rate apartment in 2012 in the metro areas studied, market-rate rents increased far faster on average than Housing Credit rents. By 2017, the average Housing Credit restricted rent payment was 38 percent lower than the average market-rate rent in the areas analyzed in the study.