Sector’s income, NOI outperformed market rate properties
SANTA BARBARA, Calif., February 24, 2026 – Strong income growth elevated net operating income for the U.S. fully affordable property sector in 2025, according to new data from Yardi® Matrix.
Income at fully affordable multifamily properties recorded 5.7% average growth in 2025, exceeding the 2.1% growth recorded by market rate properties. That helped produce NOI growth of 8.7% for the year, almost four times that of market rate units. Meanwhile, affordable housing expenses rose an average of 3.3% per unit in 2025, down from the 7.8% peak seen in 2022 and 2023.
The average allowable increase from the U.S. Department of Housing and Urban Development was more than 6% in 2025, a key contributor to the sector’s overall income growth.
Although fully affordable properties boast healthy big-picture numbers, “the industry faces challenges that require operators to be diligent and focus on efficiency,” a new national report from Yardi Matrix states, with rent growth likely to remain soft in many markets in 2026. Moreover, many properties “are still dealing with the impact of several years of above-trend expense growth” and challenging economic conditions are exacting a toll on lower-income families.
Get in-depth analysis of income, operating expenses, NOI and other trends in the Yardi Matrix Affordable Housing National Report for February 2026.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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