US Expands FHA-Insured Financing Eligibility to Build-to-Rent Communities

On October 14, the US Department of Housing and Urban Development (HUD) announced that its Federal Housing Administration (FHA) is expanding access to rental housing by allowing build-to-rent (BTR) communities to qualify for FHA-insured financing under two of its multifamily mortgage insurance programs.

Effective immediately, the policy allows BTR communities—multifamily rental properties consisting of single-family homes, duplexes, or triplexes, including site-built and manufactured homes—to qualify for financing under the same terms and conditions as traditional multifamily rental developments, subject to requirements outlined in HUD’s Mortgagee Letter.

The updated policy applies to FHA’s Section 221(d)(4) program for new construction and Section 223(f) program for acquisition or refinancing of recently developed rental communities. The change reflects growing demand for single-family, duplex, and triplex rental housing, as well as the expanding presence of professionally managed BTR developments.

Joe Gormley, who is overseeing FHA and the Office of Housing, said:

“Expanding housing supply, including new rental housing, is essential to improving affordability. Combined with other initiatives we are working on at HUD, including chassis removal in our manufactured housing programs, we are unshackling the market to deliver housing where it’s needed most.”