2. HRSR 02-01-2016 - Laserfiche WebLink

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RENTAL MARKET ANALYSIS 50% higher than the other older market rate properties and had three vacancies at the time of the survey. • One-bedroom monthly rents ranged from $675 to $1,589 with rents per square foot from $0.80 to $1.28. Two-bedroom monthly rents ranged from $725 to$1,429 with rents per square foot from $0.69 to $1.38. Evans Meadows has six three-bedroom units that rent for $1,965 per month ($1.31 per square foot). • Overall, the average price per square foot for units in Elk River is $0.93. The average price per square foot rents for a efficiency unit is$1.16, $1.05 for a one-bedroom unit, $1.44 for a one-bedroom plus den unit, $0.94 for a two-bedroom unit, and $0.90 for three-bedroom units. The newest units built at Evans Meadows are renting at a price per square foot ranging from $1.31 for three-bedroom units to $1.38 for one-bedroom units. • A common laundry room with coin-operated washers and dryers is available in all market rate properties surveyed. Granite Shores has in-unit laundry and Tara Hills Estates has in- unit hook-up for laundry. All of the properties surveyed have underground, attached, or detached garages either included in the monthly rent or are available for an extra fee ($25 to $50 per month). Affordable/Subsidized • We identified five affordable projects (244 units) which are financed through the Low Income Housing Tax Credit (LIHTC) program, otherwise known as the Section 42 program. The maximum income limit for residency at these projects is at 60%of the area median income. Income limits are represented for both programs in Figures 1 and 2 on page 48. • We also identified two subsidized projects (54 units). Both are Rural Development developments requiring rent of 30%of a resident's adjusted gross income (AGI). • There have been three affordable developments built within the past 10 years. Coachman Ridge is the most recent development which opened in November 2015. Coachman Ridge was fully leased before the occupancy date. The other new affordable developments are Jackson Place (32 units) which was built in 2007 in Downtown Elk River and The Depot at Elk River Station (53 units) built in 2011 near the commuter rail station . The majority of the subsidized and Tax-Credit properties were built 15 or more years ago. • All subsidized units were occupied and there were four vacant units in the affordable properties as of October 2015 for a total vacancy rate of 1.3%. Typically, subsidized and affordable rental properties should be able to maintain vacancy rates of 3%or less in most housing markets.The low vacancy rates in the market indicate pent-up demand for affordable and subsidized units and also are an indication of the current economic climate in the area. MAXFIELD RESEARCH&CONSULTING,LLC. 42