EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Mixed Income Building ROI Calculator

Mixed-income projects blend market returns with affordable social mission.

%
$
$
$

Blended yield on cost

0.07%

Annual revenue

$5,805,600

Total cost

$55,000,000

How the math works

Revenue = market × rent × 95% + affordable × rent × 97% × 12. Yield = NOI ÷ cost.

$160×$2,800×95% + 40×$1,500×97%×12 = $5.96M + $699k = $6.66M × 70% NOI margin = $4.66M / $55M = 8.5%.

How to Use

  1. Enter total units.
  2. Enter affordable % of units.
  3. Enter market rent / mo.
  4. Enter affordable rent / mo.
  5. Enter construction cost per unit.
  6. Read blended yield.

Frequently Asked Questions

Why mixed-income?

Social mission (economic integration), regulatory (IZ mandate), subsidy access (density bonus, tax abatement, LIHTC, tax-exempt bonds), political acceptance (community benefit). Modern institutional affordable housing: 80-90% mixed-income (rarely 100% affordable). Mixed-income operators: Jonathan Rose Companies, Preservation of Affordable Housing, Mercy Housing, Community Preservation Corp.

Typical mixes?

10-20% affordable at 60% AMI + 80-90% market: common IZ-driven. 30% affordable at 50% AMI + 70% market: LIHTC + market (more complex). 100% affordable at various AMI levels: pure affordable (rare outside tax credit deals). 50/50 workforce and market: newer middle-income model. Economics differ materially — model carefully.

Operational complexity?

Separate tenant qualification processes for market vs affordable tiers. Separate rent rolls and reporting. Separate compliance monitoring (affordable only). Must ensure no discrimination in common areas (fair housing). Marketing to attract both segments simultaneously. Professional management costs: 10-20% higher than pure market. Operator economies of scale: small deals (<100 units) challenging; large (>300) workable.

Financing stack?

Mixed: LIHTC equity (for affordable portion), tax-exempt bonds (affordable portion debt), conventional debt (market portion), sponsor equity, LP equity, HUD 221(d)(4) (blend), soft debt (city HOME funds), tax abatement credit. Complex to structure — specialized legal, financial, accounting teams essential. Legal/organizational cost: $400-1,200k typical for complex mixed-income deal ($50M+).

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →