New Income and Expense Data on Performance of Federally Assisted Apartments Reported in IREM Benchmarking Study
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Survey Includes Utility and Maintenance Costs and Other Operating Data

 

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Editor's Note: Review copies and graphs and charts available to media on request; contact Sharon Peters (312-329-6067), speters@irem.org. For regional and metropolitan breakout information, contact Matt O'Hara (312-329-6025), mohara@irem.org.

General Information
2012 Income/Expense Analysis: Federally Assisted Apartments, Institute of Real Estate Management, 240 pages, soft cover, charts/graphs; IREM Member price is $207.95 and non-member prices is $414.95 (plus shipping and handling). In addition to the traditional print format, the new 2012 Edition is available online at www.irem.org. The data is easily downloadable in both Excel and PDF file formats, and is completely customizable in Excel. As a special incentive, purchasers of the report in print format also can receive it in downloadable Excel file and PDF format for just an additional $99.99.

(CHICAGO, IL, July 27, 2012) Operating expenses in 2011 versus 2010 increased across the board for all but one category of federally subsidized multifamily housing property, including all Section 202; Section 221(d)3; Section 236; Section 8 Family; and Section 8 Elderly/Handicapped elevator and low-rise buildings. The year-to-year increases ranged from $.08 to $0.73 per square foot of rentable area. The exception, Section 8 Family low-rise buildings, incurred the very same operating expenses as in 2010.

These are among the key findings reported in the 2012 edition of the Income/Expense Analysis: Federally Assisted Apartments, a new benchmarking study published by the Institute of Real Estate Management (IREM). Conducted by IREM since 1986, this annual study analyzes the previous year's operating data for more than 1,109 high-rise (elevator buildings), low-rise and garden-style properties nationwide - containing 95,640 units - that receive one of six types of federal assistance: HUD Sections 202, 221(d)3, 236, Section 8 Elderly/Handicap and Section 8 Family and Rural Development Section 515. It is designed as a benchmarking and planning tool to help owners and managers of subsidized housing make detailed, accurate comparisons of the performance of properties in their portfolios. It also can be used as a resource for developing appraisals, acquisition or sales proposals, feasibility studies and loan requests.

NET INCOME EXAMINED
In terms of net income by subsidy type, Section 202 building categories in 2011 ranged from $4.40 to $9.52 per square foot; Section 221(d)3 buildings ranged from $5.13 to $6.55 per square foot; Section 236 buildings ranged from $3.60 to $3.83 per square foot; Section 8 Elderly/Handicapped buildings ranged from $4.95 to $7.26 per square foot; and Section 8 Family buildings ranged from $4.40 to $8.14 per square foot.

OTHER STUDY HIGHLIGHTS

  • Utility costs for federally subsidized multifamily buildings were both up and down in 2011 from the year earlier. Increases ranged anywhere from $0.03 to $0.34 per square foot whereas decreases ranged from $0.02 to $0.36 per square foot.
  • Section 8 Elderly/Handicapped garden buildings reported the lowest utility costs at $1.07 per square foot. Section 236 elevator buildings reported the highest such costs at $2.05 per square foot.
  • Maintenance costs (costs include security and grounds maintenance, but excluding general maintenance payroll) for all elevator buildings, increased last year from the prior year, whereas those for low-rise and garden buildings were both up and down. Section 8 Elderly/Handicapped garden buildings reported the lowest maintenance costs at $0.80 per square foot. Section 202 low-rise buildings reported the highest maintenance costs at $1.65 per square foot.
  • Elevator buildings reported median net operating income ranging from $3.83 to $9.52 per square foot; low-rise buildings ranging from $3.60 to $5.13 per square foot; and garden buildings ranging from $3.76 to $7.26 per square foot.
  • With regard to turnover ratio during 2011, federally assisted properties reported the number of new tenants moving into their building to be 14 percent of total apartments in an elevator building, 27 percent in a low-rise building, and 25 percent in a garden-type property. Conventionally financed apartments experienced a turnover rate ranging from 40 to 52 percent.

MORE STUDY SPECIFICS
The IREM Income/Expense Analysis research study breaks down operating figures into several categories, such as building type, subsidy type, property size and property age. Regional and city reports are also included.

PRICING
The 240-page Income/Expense Analysis: Federally Assisted Apartments report is available to IREM Members and non-members for $207.95 and $414.95, respectively, plus shipping and applicable state sales tax. Internet users can order the study in soft cover or in a downloadable format by accessing the Publications section (click on Income/Expense Analysis Reports on the drop-down menu) of the IREM web site at www.irem.org. As a special incentive, purchasers of the print report also can receive it in downloadable Excel file and PDF format for just $99.99, with the data completely customizable in Excel.

The companion Online Lab is priced at $292.95 for IREM Members and $584.95 for non-members. For information on corporate discounts available for multiple users of the product in a given firm, contact Matthew O'Hara at mohara@irem.org, or phone 1-800-837-0706, ext. 6025.

ORDERING INFORMATION
To order any of the Income/Expense Analysis: Federally Assisted Apartments' products, contact the IREM Customer Service Department at 430 N. Michigan Ave., Chicago, IL 60611-4090 or call toll-free to (800) 837-0706, ext. 4650. Credit card orders (VISA, MasterCard, Discover or American Express) can be faxed toll-free to (800) 338-4736 or e-mailed to getinfo@irem.org.

FOUR OTHER 2012 I/E ANALYSIS STUDIES AND COMPANION LABS AVAILABLE
IREM also has just published new 2012 editions of four other annual Income/Expense Analysis studies, each of which has a companion Lab. The categories covered: Office Buildings; Conventional Apartments; Shopping Centers; Condominiums, Cooperatives & Planned Unit Developments. Pricing and other information is available in the Publications section (click on Income/Expense Analysis Reports on the drop-down menu) of the IREM Web site at www.irem.org.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT
The Institute of Real Estate Management (IREM) is an international community of real estate managers across all property types dedicated to ethical business practices and maximizing the value of investment real estate. An affiliate of the National Association of Realtors, IREM has been a trusted source for knowledge, advocacy and networking for the real estate management community for more than 80 years.

IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors and has 80 U.S. chapters, 14 international chapters, and several other partnerships around the globe. Worldwide membership includes nearly 18,000 individual members and over 535 corporate members.

IREM promotes ethical real estate management practices through its credentialed membership programs, including the Certified Property Manager (CPM) designation, the Accredited Residential Manager (ARM) certification, the Accredited Commercial Manager (ACoM) certification, and the Accredited Management Organization (AMO) accreditation. These esteemed credentials certify competence and professionalism for those engaged in real estate management. IREM also offers CPM Candidate, Associate, Student, and Academic memberships. All members are bound by the strictly enforced IREM Code of Professional Ethics.

Collectively, CPM Members in the United States manage nearly $2 trillion in real estate assets, including 11.4 million residential units and 10.4 billion net square feet of commercial space. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.