What Exactly is Workforce Multi-Family Housing?

Workforce multifamily housing is defined as that in which families earning 60% to 100% of the area median income (AMI) live. Using the nations 2017 median income of $60,336, the 60% to 100% range of AMI roughly equates to between $36,200 and $60,300.

Workforce housing is not entirely multi family but it does represent the predominant investment opportunity for the workforce housing sector. This type of housing is a combination of Class B and workforce (formally known as Class C) product. Some Class B properties would not qualify, but using classes is a frequent and adequate approach.

Workforce multifamily housing is composed of mostly older (pre-2000s product) and mostly suburban garden style communities. It is typically over 30 years old, with a dated exterior and interior. It still contains the original appliances and light fixtures and foundation/structural problems could exist. It also might be necessary to replace HVAC units, electrical wiring and plumbing. Renters in these communities are often "renters by necessity" vs. "renters by choice."

(Source - 2018 CBRE The Case for Workforce Housing Report)