Public Housing Calculator

Public housing operating subsidy fills gap between operating cost and 30% AMI tenant rent.

Monthly tenant rent

Monthly operating cost

Annual capital fund / unit

Total units

Operating subsidy / unit

$3,000

Annual subsidy total

$600,000

Total annual HUD funding

$1,000,000

How the math works

Operating subsidy = (operating cost − tenant rent) × 12. Capital fund flat per unit.

($550 − $300) × 12 = $3,000/unit/yr × 200 = $600k operating + $400k capital = $1M HUD funding.

How to Use

Enter monthly tenant rent.
Enter monthly operating cost.
Enter annual capital fund / unit.
Enter total units.
Read operating subsidy / unit.

Frequently Asked Questions

Public housing operating subsidy?

Operating cost: $400–800 per unit per month (utility, maintenance, security, management). Tenant rent: 30% of adjusted income. Operating subsidy from HUD: closes gap between cost and tenant payment. Capital fund: ~$2,000 per unit per year for replacement reserves. RAD (Rental Assistance Demonstration): converts public housing to project-based Section 8 to access private capital. RAD-converted: tenants now pay HCV-style 30% income share. Funding cuts: ongoing federal pressure, RAD encouraged for refresh capital.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.