The Impact of Resident Services on Property Financial Performance

This study, spearheaded by Stewards of Affordable Housing for the Future, examines the relationship between resident services in affordable rental properties and the properties’ financial performance. 

Using a quasi-experimental design, the research tests the hypothesis that coordinated services—including housing stability support, financial counseling, health programs, and community engagement—help residents overcome personal and economic challenges, improve community cohesion, and build greater financial stability. That stability can then translate into measurable property improvements, including fewer late or missed rent payments, lower resident turnover, and reduced maintenance costs, ultimately strengthening overall property financial health.  

To test this hypothesis, we gathered data from 248 rental properties (156 service-enriched properties and 92 non-enriched properties) representing 19 different affordable housing organizations. The data from 2015-2019 included a wide range of property-level financial indicators across seven domains. We then used regression analysis to assess the relationship between provision of resident services in a given year and property financial outcomes in the following year.

Overall, our findings support the hypothesis that coordinating and providing resident services results in improved property financial health in the years preceding the COVID-19 pandemic. Our primary analysis estimates that, on average, service-enriched properties have higher Net Operating Income (NOI) than similarly situated non-enriched properties. Specifically, we find that the provision of services is associated with a 26% increase in NOI relative to the average NOI of properties within the same organization, all else equal. For the average property, this translates to almost $1,200 in additional NOI per unit in the following year.

This study was conducted with support from and in collaboration with the Housing Partnership Network, NeighborWorks America, Multifamily Impact Council, and the National Leased Housing Association (NLHA).