Manufactured housing is one of the most overlooked corners of the REIT universe, but its economics are distinctive. A manufactured housing REIT doesn't own scattered houses — it owns the land-lease communities those houses sit in. Residents typically own their manufactured home and rent the lot, or pad, beneath it from the community owner. Because manufactured housing is the lowest-cost unsubsidized housing option in most markets, demand is rooted in housing affordability, and because moving a manufactured home is expensive and difficult, residents tend to stay for years — producing high retention, low turnover, stable occupancy, and steady pricing power on lot rents. The flip side is a growing regulatory and rent-control risk, as lot-rent increases draw political scrutiny in some markets. This guide explains what manufactured housing REITs own, the affordable-housing demand thesis, the retention and turnover dynamics, the regulatory risks, and how to evaluate the sector. Demand, return, and outlook statements here are general and non-promissory — past performance doesn't guarantee future results, and you should verify current conditions; this is educational information, not investment advice.
What These REITs Own
A manufactured housing REIT owns manufactured-housing communities — the land-lease communities (sometimes still called mobile home parks) in which manufactured homes are placed. The defining feature of the model is the split between the home and the land: residents typically own their manufactured home but rent the lot, or pad, beneath it from the community. So the REIT's core asset is the land and the community infrastructure — the roads, utilities, common areas, and entitlements — rather than the individual homes themselves.
This land-lease structure shapes the REIT's economics. Because residents own their homes and pay lot rent, the community owner has a relatively light operating burden compared with apartments: the REIT isn't maintaining the interiors of thousands of dwellings or turning units between every tenant. Its income comes primarily from lot rents across the community's occupied pads, plus, in some cases, ancillary revenue and rental homes the REIT itself owns. Larger REITs may own hundreds of communities across many states, giving geographic diversification within the sector.
So a manufactured housing REIT is a land-lease community owner: it owns the land, infrastructure, and entitlements of manufactured-housing communities, and earns lot rent from residents who typically own their homes but rent the pad beneath them. So understanding what it owns frames the sector. What manufactured housing REITs own — the land-lease communities (the land, roads, utilities, common areas, and entitlements) where residents own their manufactured homes and rent the lot, with the REIT earning lot rent across occupied pads — distinguishes the model from apartment ownership. The home-versus-land split is the key. Understanding what these REITs own frames everything else. A manufactured housing REIT owns the land-lease communities themselves — the land and infrastructure — and earns lot rent from residents who own their homes but rent the pad beneath them.
Affordable-Housing Demand
The demand thesis for manufactured housing rests on affordability. Manufactured housing is generally the lowest-cost unsubsidized housing option in most U.S. markets — for many households, the monthly cost of owning a manufactured home and renting a lot is well below the cost of a comparable apartment or a conventional single-family home. As housing affordability has tightened, that cost advantage has supported steady demand for the limited supply of community pads, which is a structural underpinning some investors find attractive.
Supply dynamics reinforce the affordability thesis. New manufactured-housing communities are difficult to develop because of zoning resistance and entitlement hurdles, so the stock of communities grows slowly while demand for affordable housing persists. That constrained supply, combined with steady demand, has historically supported high occupancy and the ability to raise lot rents gradually over time. None of this guarantees future results — affordability dynamics and local conditions vary — but the underlying demand driver is durable affordable-housing need rather than a cyclical fad.
So affordable-housing demand is the foundation of the sector: manufactured housing is the lowest-cost option for many households, and constrained new supply meets steady, affordability-driven demand. So this demand driver anchors the thesis. Affordable-housing demand — manufactured housing being the lowest-cost unsubsidized housing for many households, with persistent affordability need on one side and constrained, slow-growing community supply on the other — underpins steady occupancy and gradual lot-rent growth, though local conditions vary and past results don't guarantee the future. Affordability is the structural demand anchor. Understanding it explains why the sector is described as recession-tested. The sector's demand rests on affordability: manufactured housing is the lowest-cost option for many households, and limited new supply meets durable, affordability-driven demand.
Manufactured housing is the cheapest unsubsidized roof in most American markets — and when housing gets less affordable, the demand for the cheapest option tends to hold up rather than fade.
High Retention & Low Turnover
The single most distinctive feature of manufactured housing economics is how rarely residents leave. Because residents own their homes and those homes are expensive and difficult to relocate — moving a manufactured home can cost thousands of dollars and risks damage — residents tend to stay put for years rather than move when lot rents rise modestly. The result is unusually high retention and low turnover, which translate into stable occupancy and a steady, predictable income stream from lot rents.
This stickiness gives the community owner gradual pricing power on lot rents. When a resident's alternative is to spend thousands to move a home (or to sell it into a community at a discount), small annual lot-rent increases rarely trigger a departure, so occupancy holds even as rents drift upward over time. Low turnover also keeps operating frictions low: there are far fewer move-outs, re-leasing costs, and vacancy gaps than in apartments. This combination is why the sector is often described as resilient and recession-tested.
So high retention and low turnover are the sector's defining strength: homes are hard and costly to move, so residents stay, occupancy is stable, and lot rents can rise gradually with little churn. So this stickiness anchors the income thesis. High retention and low turnover — residents staying for years because their owned homes are expensive and difficult to relocate, producing stable occupancy, gradual lot-rent pricing power, and low re-leasing friction — are what make manufactured housing income resilient and recession-tested. The cost of moving a home makes residents sticky. Understanding this explains the sector's steady cash-flow reputation. Because owned homes are hard and costly to move, manufactured housing communities see high retention and low turnover — stable occupancy and gradual lot-rent pricing power with little churn.
Regulatory & Rent-Control Risk
The same stickiness that makes manufactured housing income stable also creates its central risk. Because residents are sticky and lot rents can rise gradually, lot-rent increases have drawn growing political scrutiny. The argument from advocates is that residents who own their homes are effectively captive — they can't easily move — so steep or repeated lot-rent increases can feel coercive. This has fueled a regulatory and rent-control risk that is real and growing in some jurisdictions.
That scrutiny takes several forms. Some states and localities have enacted or considered rent-control measures specific to manufactured-housing communities, caps on annual lot-rent increases, notice requirements, or rights of first refusal that give residents or nonprofits a chance to buy a community before it's sold. Where such measures apply, they can limit a REIT's ability to raise rents and affect the value of communities in that market. The exposure varies widely by state and locality, so the regulatory map matters as much as the physical assets. Rules change, so verify current conditions.
So regulatory and rent-control risk is the sector's key headwind: the captive-resident dynamic invites political attention, and rent caps, notice rules, or purchase rights can constrain lot-rent growth in affected markets. So weighing this risk is essential. Regulatory and rent-control risk — growing political scrutiny of lot-rent increases (because residents are effectively captive), expressed through rent caps, notice requirements, or rights of first refusal that vary by state and locality — is the counterweight to the sector's stability and can limit rent growth where it applies. Regulation is the central headwind. Understanding it is essential to weighing the sector. The key risk is regulatory: scrutiny of lot-rent increases can produce rent caps, notice rules, or purchase rights that limit rent growth in affected markets, with exposure varying by jurisdiction.
- Manufactured housing REITs own land-lease communities — the land and infrastructure — and earn lot rent from residents who own their homes but rent the pad.
- Demand rests on affordability: manufactured housing is the lowest-cost unsubsidized option for many households, met by constrained new supply.
- High retention and low turnover — because owned homes are expensive to move — produce stable occupancy and gradual lot-rent pricing power.
- The central risk is regulatory: rent-control measures, caps, and notice rules vary by jurisdiction and can limit lot-rent growth where they apply.
Evaluating the Sector
Evaluating a manufactured housing REIT starts with the quality of its communities. Investors look at where the communities are located (market strength, household income, and housing affordability in the area), the physical condition and amenities of the communities, and the mix between community-owned rental homes and resident-owned homes paying lot rent. Higher-quality communities in supply-constrained, affordability-pressured markets have historically supported the most stable occupancy and the most durable lot-rent growth.
From there, the analysis turns to operating metrics and risk exposure. Occupancy across the portfolio, the history and pace of lot-rent growth, and expense control all signal how well the REIT is running its communities. Just as important is the regulatory exposure: how concentrated the portfolio is in states or localities with rent-control measures (or active proposals), since that shapes future rent-growth potential. As with any REIT, investors also weigh the standard metrics — FFO, AFFO, and NAV — leverage, and the structure (traded versus non-traded), all within a suitability review.
So evaluating the sector means weighing community quality and location, occupancy and lot-rent growth, expense control, and regulatory exposure, alongside the usual REIT metrics and structure. So this framework guides analysis. Evaluating the sector — assessing community quality and location (market strength, affordability, condition, owned-versus-rented mix), occupancy and the pace of lot-rent growth, expense control, and regulatory exposure (concentration in rent-control jurisdictions), plus FFO/AFFO/NAV, leverage, and structure within a suitability review — frames a disciplined look at a manufactured housing REIT. Community quality and regulation are central. Understanding this framework guides analysis. Evaluate a manufactured housing REIT by community quality and location, occupancy, lot-rent growth, expense control, and regulatory exposure, alongside FFO/AFFO/NAV, leverage, and structure.
Two numbers tell you most of the story in this sector: how full the communities are, and how much room there is to raise lot rents — and the regulatory map quietly governs the second one.
Income and Resilience Profile
Pulling the threads together, manufactured housing REITs present a recognizable income-and-resilience profile. The combination of affordability-driven demand, constrained supply, and very sticky residents has historically produced steady occupancy and gradual, predictable lot-rent growth — characteristics that some investors associate with defensive, recession-tested income. The light operating model (owning land and infrastructure rather than maintaining thousands of dwelling interiors) reinforces the steadiness of cash flow relative to more management-intensive property types.
That resilience comes with real qualifiers. Lot-rent growth is the engine of returns, and regulatory measures can throttle that engine in affected markets, so the income profile is only as durable as the regulatory environment allows. Like all REITs, manufactured housing REITs carry market, interest-rate, leverage, and distribution risks — distributions aren't guaranteed, and share prices or NAVs can fluctuate. The sector's defensive reputation is a tendency observed historically, not a promise; conditions vary by portfolio and by market, and past performance doesn't guarantee future results.
So the income-and-resilience profile is defensive-leaning but regulation-dependent: sticky residents and affordable demand support steady income, while rent-control exposure and ordinary REIT risks temper it. So this balanced view frames expectations. The income and resilience profile — affordability-driven demand, constrained supply, and very sticky residents supporting steady occupancy and gradual lot-rent growth (a historically defensive, recession-tested income character), tempered by regulatory limits on rent growth and ordinary REIT risks — captures the sector's appeal and its qualifiers. It's defensive-leaning, not guaranteed. Understanding this sets realistic expectations. Manufactured housing REITs offer a defensive-leaning income profile from sticky residents and affordable demand, tempered by regulatory exposure and ordinary REIT risks; nothing here is guaranteed.
How Baker 1031 Helps You Evaluate Manufactured Housing REITs
Baker 1031 Investments helps investors understand the manufactured housing REIT sector — what these land-lease community REITs own, the affordable-housing demand behind them, the high-retention and low-turnover dynamics, the regulatory and rent-control risks, and how to evaluate community quality, occupancy, lot-rent growth, and regulatory exposure — so you can decide whether the sector fits your goals and, if so, access suitable offerings.
REIT and non-traded-REIT interests and related securities are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review — non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage accounts. We help you understand the sector's demand drivers, retention dynamics, and regulatory risks, evaluate specific manufactured housing REIT offerings (the communities, occupancy, lot-rent history, regulatory exposure, fees, and structure), and, if suitable, access them. Baker 1031 does not provide tax or legal advice; your CPA and attorney handle your specific situation, including how REIT dividends are taxed. We keep demand and outlook statements general and non-promissory — yields and returns are never promised, past performance does not guarantee future results, and you should verify current conditions. Our role is to help you evaluate the sector clearly and invest only when suitable for your goals and risk tolerance.
Frequently Asked Questions
What is a manufactured housing REIT?
A manufactured housing REIT is a Real Estate Investment Trust that owns manufactured-housing communities — the land-lease communities (sometimes still called mobile home parks) where manufactured homes are placed. The defining feature is the split between the home and the land: residents typically own their manufactured home but rent the lot, or pad, beneath it from the community owner. So the REIT's core asset is the land, infrastructure, and entitlements of the communities — the roads, utilities, and common areas — rather than the individual homes. Its income comes mainly from lot rents across occupied pads, plus, in some cases, rental homes the REIT itself owns and ancillary revenue. Larger REITs may own hundreds of communities across many states. Like all REITs, it distributes most of its taxable income to shareholders as dividends. So a manufactured housing REIT is a land-lease community owner that earns lot rent from residents who own their homes but rent the land beneath them.
How do manufactured housing REITs make money?
Manufactured housing REITs make money primarily from lot rent — the rent residents pay for the pad their home sits on. Because residents typically own their manufactured homes and rent only the land, the community owner collects lot rent across the occupied pads in each community, which forms the bulk of the REIT's income. Some REITs also own a portion of the homes themselves and rent those out, and many earn ancillary revenue from utilities, services, or amenities. After expenses, the REIT distributes most of this income to shareholders as dividends, in keeping with the REIT rules. The model is relatively light on operating burden compared with apartments, since the REIT isn't maintaining the interiors of thousands of dwellings or turning units between every tenant. So manufactured housing REITs earn money mainly from lot rents, supplemented by rental homes and ancillary revenue, and pass most of it through to investors as dividends.
Why is demand for manufactured housing considered durable?
Demand for manufactured housing is considered durable because it rests on affordability. Manufactured housing is generally the lowest-cost unsubsidized housing option in most U.S. markets — for many households, owning a manufactured home and renting a lot costs well below a comparable apartment or conventional single-family home. As housing affordability has tightened, that cost advantage has supported steady demand for the limited supply of community pads. Supply reinforces the thesis: new communities are hard to develop because of zoning resistance and entitlement hurdles, so the stock of communities grows slowly while affordability-driven demand persists. The result has historically been high occupancy and the ability to raise lot rents gradually. That said, none of this is guaranteed — affordability dynamics and local conditions vary, and past performance doesn't guarantee future results. So the demand is rooted in durable affordable-housing need met by constrained supply, which is why the sector is often called recession-tested.
Why is retention so high in manufactured housing communities?
Retention is high because residents own their homes, and manufactured homes are expensive and difficult to move. Relocating a manufactured home can cost thousands of dollars and risks damaging the home, so residents tend to stay put for years rather than move when lot rents rise modestly. This stickiness means occupancy is stable and turnover is low — there are far fewer move-outs, re-leasing costs, and vacancy gaps than in apartments. It also gives the community owner gradual pricing power on lot rents: when a resident's alternative is to spend thousands to move (or to sell the home into the community at a discount), small annual lot-rent increases rarely trigger a departure. This combination of stable occupancy and gradual rent growth is why the sector is described as resilient and recession-tested. So retention is high because the cost and difficulty of moving an owned home keep residents in place for the long term.
What is lot rent?
Lot rent is the rent a resident pays to the community owner for the lot, or pad, that their manufactured home sits on. In a land-lease community, the resident typically owns the home itself but does not own the land beneath it — instead, they rent that land from the community owner (often a manufactured housing REIT). The lot rent covers the use of the pad and, depending on the community, may include access to roads, utilities, common areas, and amenities. Lot rent is the primary income source for a manufactured housing REIT, collected across the occupied pads in each community. Because residents own their homes and find them costly to move, lot rents can typically be raised gradually over time without triggering many departures, giving the community owner steady pricing power. So lot rent is the land-lease payment that residents make for the pad beneath their owned home, and it is the core revenue stream for the sector. Lot-rent growth is a key driver of REIT returns.
What is the main risk in the manufactured housing sector?
The main risk is regulatory and rent-control risk. The same stickiness that makes the income stable — residents who own their homes and can't easily move — also makes residents effectively captive, which has drawn growing political scrutiny of lot-rent increases. Advocates argue that steep or repeated increases can feel coercive to captive residents, and that scrutiny has produced or threatened various measures: rent-control caps on annual lot-rent increases, notice requirements, and rights of first refusal that give residents or nonprofits a chance to buy a community before it's sold. Where such measures apply, they can limit a REIT's ability to raise lot rents — the engine of returns — and affect community values in that market. The exposure varies widely by state and locality, so the regulatory map matters as much as the physical assets. Rules change, so verify current conditions. So the central risk is that regulation constrains lot-rent growth in affected markets, tempering the sector's otherwise stable income profile.
Are manufactured housing communities the same as mobile home parks?
They're essentially the same thing, but the terminology has evolved. 'Mobile home park' is the older term, and the industry now generally prefers 'manufactured-housing community' or 'land-lease community.' The distinction reflects changes in the homes themselves: factory-built homes constructed after June 1976 are regulated under federal HUD standards and are called 'manufactured homes,' whereas 'mobile home' technically refers to units built before that date. Modern manufactured homes are typically placed permanently on a pad and aren't actually mobile in any practical sense — moving one is expensive and difficult. So when a REIT refers to its communities, it's describing land-lease communities of manufactured homes, the same asset that was historically called a mobile home park. The shift in language also reflects an effort to modernize the sector's image. So yes, manufactured housing communities and mobile home parks describe the same kind of asset — the updated terms are simply more precise and current. The underlying economics are identical.
Do residents own their homes in a manufactured housing community?
In most cases, yes — the defining feature of the land-lease model is that residents own their manufactured homes but rent the lot beneath them. This split between home ownership and land rental is what shapes the entire economics of the sector. Because residents own their homes, they have a stake in the community and tend to maintain their homes, and because the homes are costly and difficult to move, they stay for years, producing high retention and stable occupancy. The REIT, as community owner, earns lot rent rather than maintaining the interiors of the homes. That said, some communities also include rental homes that the REIT or community owner owns and rents out directly — so a portfolio may have a mix of resident-owned homes paying lot rent and community-owned rental homes paying a higher all-in rent. So in the typical land-lease community, residents own their homes and rent the pad, which is precisely what makes residents sticky and the income stable.
Why is it hard to build new manufactured housing communities?
New manufactured-housing communities are difficult to develop mainly because of zoning resistance and entitlement hurdles. Local governments and neighboring residents often oppose new communities, so obtaining the zoning, permits, and entitlements needed to develop one can be slow, costly, or simply unattainable in many areas. As a result, very few new communities are built, and the existing stock grows slowly even as demand for affordable housing persists. This constrained supply is a structural underpinning of the sector's thesis: with limited new pads coming online and steady, affordability-driven demand, existing communities have historically enjoyed high occupancy and the ability to raise lot rents gradually. The scarcity of new supply also makes well-located, high-quality existing communities valuable. So the difficulty of building new communities — driven by zoning and entitlement barriers — limits supply, which, combined with durable demand, supports occupancy and gradual rent growth. This supply constraint is part of why some investors find the sector attractive.
How do I evaluate a manufactured housing REIT?
Start with the quality and location of the communities: the strength of the local markets, household incomes, and housing affordability in those areas; the physical condition and amenities of the communities; and the mix between community-owned rental homes and resident-owned homes paying lot rent. Then look at operating metrics — occupancy across the portfolio, the history and pace of lot-rent growth, and expense control — which signal how well the REIT runs its communities. Critically, assess regulatory exposure: how concentrated the portfolio is in states or localities with rent-control measures or active proposals, since that shapes future rent-growth potential. As with any REIT, weigh the standard metrics (FFO, AFFO, and NAV), leverage, and structure (traded versus non-traded). All of this should happen within a suitability review if you're considering a non-traded offering. So evaluate a manufactured housing REIT by community quality and location, occupancy, lot-rent growth, expense control, and regulatory exposure, alongside the usual REIT financial metrics and structure.
What are FFO, AFFO, and NAV?
FFO (funds from operations), AFFO (adjusted funds from operations), and NAV (net asset value) are the core metrics used to evaluate REITs, including manufactured housing REITs. FFO adjusts net income by adding back real estate depreciation (a large non-cash charge) and removing gains or losses on property sales, giving a clearer picture of the recurring cash a REIT's properties generate than standard earnings do. AFFO refines FFO further by subtracting recurring capital expenditures and other adjustments, approximating the cash actually available to support distributions — often considered the better measure of distribution sustainability. NAV estimates the per-share value of the REIT's underlying real estate net of debt, useful for judging whether shares trade at a premium or discount to asset value (and the basis for pricing non-traded REITs). For manufactured housing REITs, these metrics work the same way as for any REIT, applied to lot-rent-driven community income. So FFO, AFFO, and NAV measure cash flow, distribution coverage, and asset value — the standard lens for any REIT. Verify the specifics for any given REIT.
Are manufactured housing REITs recession-resistant?
Manufactured housing REITs are often described as recession-tested, but 'resistant' overstates it — the more accurate word is defensive-leaning. The sector's resilience comes from real structural features: affordability-driven demand (manufactured housing is the lowest-cost option, and demand for the cheapest housing tends to hold up in downturns), constrained supply, and very sticky residents who rarely move because their owned homes are costly to relocate. These tend to keep occupancy and lot-rent income steady through cycles. But the sector still carries ordinary REIT risks — market, interest-rate, leverage, and distribution risks — and its returns depend on lot-rent growth, which regulation can constrain. Share prices and NAVs can fluctuate, and distributions aren't guaranteed. So the sector has historically shown defensive characteristics, but that's a tendency observed in the past, not a guarantee. So manufactured housing REITs lean defensive thanks to affordability and stickiness, but they aren't immune to risk, and past performance doesn't guarantee future results.
Can I use a manufactured housing REIT in a 1031 exchange?
No — REIT shares, including those of a manufactured housing REIT, are not eligible for a 1031 exchange. A 1031 exchange requires the exchange of like-kind real property held for investment or business use, and REIT shares are securities (interests in a company), not real property, so they don't qualify. This means you can't sell investment real estate and 1031 directly into a manufactured housing REIT to defer your capital-gains tax. There is an indirect path that can ultimately reach REIT exposure: you can 1031 into a Delaware Statutory Trust (DST), which is 1031-eligible like-kind real property, and the DST's property may later be acquired by a REIT through a 721 (UPREIT) exchange, converting your interest into operating-partnership units while maintaining deferral. But a direct 1031 into a manufactured housing REIT isn't possible. Baker 1031 does not provide tax advice, so confirm the specifics with your tax advisor. So manufactured housing REIT shares can't be used directly in a 1031 exchange, though a DST-then-721 path can bridge to REIT exposure with deferral preserved.
Are manufactured housing REITs available to all investors?
It depends on the structure. Publicly traded manufactured housing REITs are listed on stock exchanges and available to virtually any investor through an ordinary brokerage account — you can buy shares, or invest through a REIT fund or ETF that holds them, with no special qualification. Non-traded and private manufactured housing REITs, by contrast, are offered through a broker-dealer, often have investment minimums, and typically require accredited or otherwise suitable investors. Before you invest in a non-traded offering, a suitability review considers your financial situation, goals, liquidity needs, and risk tolerance to determine whether an illiquid, longer-term investment is appropriate for you. This gatekeeping reflects the illiquidity and complexity of non-traded structures. So for liquid, broadly available exposure, publicly traded manufactured housing REITs are the route, while non-traded offerings are gated and advisor-assisted. So availability depends on whether the REIT is traded (broadly accessible) or non-traded (offered through a broker-dealer to suitable investors after a suitability review).
How does Baker 1031 help me evaluate manufactured housing REITs?
We help investors understand the manufactured housing REIT sector — what these land-lease community REITs own, the affordable-housing demand behind them, the high-retention and low-turnover dynamics, the regulatory and rent-control risks, and how to evaluate community quality, occupancy, lot-rent growth, and regulatory exposure — so you can decide whether the sector fits your goals and, if so, access suitable offerings. REIT and non-traded-REIT interests are offered through the broker-dealer, Aurora Securities, Inc. (member FINRA/SIPC), and any recommendation follows a suitability review; non-traded and private REITs typically require accredited or otherwise suitable investors, while publicly traded REITs trade through ordinary brokerage. We help you understand the demand drivers and regulatory risks, evaluate specific offerings (communities, occupancy, lot-rent history, regulatory exposure, fees, and structure), and, if suitable, access them. Baker 1031 does not provide tax or legal advice — your CPA handles your specific situation. We keep demand and outlook statements general and non-promissory; yields and returns are never promised, past performance doesn't guarantee future results, and you should verify current conditions.
Glossary
- Manufactured Housing REIT
- A REIT that owns land-lease manufactured-housing communities.
- Land-Lease Community
- A community where residents own homes and rent the lot.
- Lot Rent
- The rent a resident pays for the pad beneath their home.
- Pad
- The lot or site on which a manufactured home is placed.
- Manufactured Home
- A factory-built home meeting federal HUD standards.
- Mobile Home Park
- The older term for a manufactured-housing community.
- Retention
- The rate at which residents stay rather than leave.
- Turnover
- The rate at which residents move out and are replaced.
- Occupancy
- The share of community pads that are filled.
- Rent Control
- Rules limiting how much lot rent can be raised.
- Right of First Refusal
- Residents' or nonprofits' chance to buy before a sale.
- Affordable Housing
- The lowest-cost unsubsidized housing demand driver here.
- FFO
- Funds from operations — a REIT's recurring cash measure.
- AFFO
- Adjusted FFO — cash available to support distributions.
- NAV
- Net asset value — per-share value of the real estate.
- Suitability Review
- Assessing whether a non-traded REIT fits the investor.
Sources & References
- U.S. Securities and Exchange Commission. Investor.gov — Real Estate Investment Trusts (REITs)
- Nareit. What's a REIT (Real Estate Investment Trust)?
- FINRA. Real Estate Investments
- Cornell Legal Information Institute. 26 U.S. Code § 856 — Definition of real estate investment trust
Disclosures
This article is published by Baker 1031 Investments, LLC for general educational purposes for accredited investors and is not an offer to sell or a solicitation of an offer to buy any security, nor is it tax, legal, accounting, or investment advice or a recommendation. Any securities offering is made solely through a sponsor’s private placement memorandum (PPM) following a suitability determination. Securities offered through Aurora Securities, Inc. (ASI), member FINRA / SIPC; Baker 1031 Investments is independent of ASI.
Oil & gas mineral and royalty interests and DST programs are speculative, illiquid securities sold only to verified accredited investors and involve substantial risk, including possible loss of principal, commodity-price and production-decline risk, lack of control, and the risk that an intended 1031 exchange fails to qualify for tax deferral. Whether a particular interest qualifies as like-kind real property is a fact-specific legal determination that varies by state and by the terms of the instrument. Tax results depend on your individual circumstances. Consult your own CPA and attorney before acting. Past performance does not guarantee future results.
