Developing and managing affordable housing for low-income families is both a challenging and highly rewarding endeavor. Because many families in today’s housing market cannot afford the high cost of real estate or market value rents, affordable housing gives these families a chance to live comfortably and safely with an improved quality of life. Developers often rely on investors to build and manage these complexes. Here are four reasons why it might make sense for you to invest in affordable housing.

Reliable return on investment

Because the demand for affordable housing is so great, developers generally have little trouble filling their properties once they are built. This trend has been constant for many years and should continue for the foreseeable future. This means investors assume the relatively little risk and enjoy reliable ROI.

Consistent cash flow

When families qualify for affordable housing, their rents are subsidized by federal, state and local agencies. This translates to a fairly steady stream of cash flow for investors in these properties. Also, due to the high demand, if a family is still unable to afford their rent, newly vacant properties are easy to fill, keeping the risks low and the income stream constant.

Generous tax incentives

The US government offers a whole array of deductions and tax credits for those involved in building affordable housing for low-income families. These tax savings are obviously passed on to investors.

Building healthy communities

Beyond the benefits mentioned above, perhaps the most important reason to invest in affordable housing is the overall benefit to the community itself. By creating housing options for families and individuals otherwise could not afford it, you have the opportunity to change many lives for the better in a tangible manner. These people in turn often end up enriching their communities in unexpected ways.

Olympia Management has many years of proven experience in developing and providing safe, comfortable living options for individuals and families who need extra help. For more information on how to invest in affordable housing, call us today at 256-894-2382.