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<br /> <br /> <br /> <br />Hillside Heights Apartments, Elk River, Minnesota <br /> <br />Market Analyst Professionals, LLC 68 April 24, 2020 <br />Section 10: Demand Analysis <br />Demand for Rental Units <br /> Demand estimates for the proposal are outlined in the following pages based on qualified income <br />ranges for the proposal. Income ranges are based on an affordability ratio of 35 percent for family and 40 <br />percent of income to gross rent for seniors and maximum LIHTC rents and income for Sherburne County. <br />Demand is based on age and income qualified renter households within the PMA. <br /> <br /> Two ratios are used to quantify potential demand for the proposal. These ratios include the capture <br />rate which measures the ratio of units at the proposal to age- size- and income-qualified renter households <br />within the PMA. The second measure is the penetration rate, which measures the number of units in the <br />proposal plus comparable pipeline units relative to annual demand as outlined above. Demand for 30 <br />percent AMI units is not presented as these units are over maximum allowable gross (consistent with the <br />project based subsidy for these units), creating nonsensical results. Based on these estimates, the <br />proposal’s demand estimates are within acceptable thresholds.