Multifamily Property Ratings

Multifamily real estate improvements and locations vary in relative degree of desirability. In recognition of certain differentiating factors which enter into a determination the Yardi Matrix Context® rating system defines property improvements and locations independently. Ratings extend from "A+" at the spectrum's pinnacle, to "D" at the scale's lower end. A range of 10 possible ratings define assumed rental household positioning as:

Ratings Household Type
A+, A Discretionary
A-, B+ Upper Mid
B, B- Lower Mid
C+, C, C-, D Workforce

Reasonable evaluation of one apartment community's value – either for rental, or conception of a sale – requires referencing the evaluated property in Context® with other properties of similar type operating within the property's "Competitive Cluster", or a similar, competitive environment. Comparison further separates location rating considerations from property improvements ratings.

Rating consistency across all markets provides a basis for evaluating market-to-market apartment supply composition, as well as a system of reference for describing a property and its competitive environment, or evaluating a submarket.

How We Determine A Context® Rating

A Context® rating references a composite of twelve variables in determining an index applicable to rating property improvements. Twelve additional variables – independent from property improvements characteristics – are considered in determining location rating.

In calculating a "graded index" each variable is assigned a weighted value based on the variable's importance toward determining a property's relative desirability, then rated under a scale extending from one to 10. A resulting index is independently applied to improvements, and location for every Metropolitan area 50-+ unit apartment community.

For more information relating to the Context® rating, reference How We Rate A Property's Improvements, and How We Rate A Property's Location.