Evaluating 15–40 Unit Development Markets (AZ, TX, FL, Midwest) – Seeking Pro Insight

[Benjamin J Thompson]

I’m looking for perspective from experienced developers and operators as I evaluate which U.S. markets make the most sense for small-to-mid scale multifamily development—roughly 15 to 40 units—over the next phase of my investing.

I’m intentionally not locked into a single market yet. Arizona is one area I’m actively exploring (with a visit planned in February), but I’m also looking closely at Texas, Florida, parts of the Midwest, and other secondary or tertiary markets where development fundamentals still make sense.

For context, my background is primarily on the ownership and operations side:

• I’m a Marine Corps veteran, PMI-certified Project Manager, with a BA in Technology and an MBA in Business Management

• I currently own and operate 4 multi-unit and mixed-use properties in Chicago

• I have significant hands-on experience with Section 8 / voucher-based multifamily, inspections, compliance, tenant management, and long-term operations

• My mindset is long-term hold, not quick turn or merchant build, possibly move-into one and house hack, while managing the others. 

As I explore development (or co-development) opportunities in the 15–40 unit range, I’m trying to understand—from people actually doing it—where the balance of risk, complexity, and upside is most rational today.

I’d value professional insight on questions like:

• Which markets currently make the most sense for small-to-mid multifamily development, and why?

• Where do entitlement, zoning, or utility constraints (water, impact fees, infrastructure) become deal killers vs. manageable?

• How do markets like Arizona, Texas, Florida, and Midwest metros compare in terms of:

  • Cost per door (2025–2026 reality)

  • Entitlement timelines

  • Labor and construction volatility

  • Long-term rent durability (not just short-term growth)

• For someone with deep operational experience, which markets best reward disciplined, conservative underwriting?

This is not a deal pitch, and I’m not seeking brokers or wholesalers. I’m deliberately early in the process and want to pressure-test assumptions before committing capital or geography.

If you’re actively developing, operating, or investing at this scale and are willing to share perspective—publicly here or privately—I’d appreciate the insight. Even directional feedback is helpful.

Thanks in advance for thoughtful responses.

[Clark Thornton]

It feels worth asking why you want to go the new development route as opposed to simply purchasing a cash flowing multi-family property?