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Affordable Rental Housing

Freddie Mac has a long history of increasing the availability of affordable rental housing in the United States. In fact, approximately 85 percent of the rental units we have financed in the last three years, through both targeted initiatives and products and with our baseline multifamily products, are affordable to people whose incomes are at or below area median income.

Through Freddie Mac's Targeted Affordable Housing (TAH) and Program Plus® lender networks, Freddie Mac will work with you to finance rental properties located in underserved areas that are affordable to families with low and very low incomes.

  • Freddie Mac generally considers low income as income at or below 80 percent of the area median income and very low income as income at or below 60 percent of the area median income, with adjustments for smaller and larger families.

  • Underserved areas include metropolitan areas (as defined by the Office of Management and Budget) with census tracts having a median income at or below 120 percent of the median income of the metropolitan area and a minority population of 30 percent or greater; or a median income at or below 90 percent of median income of the metropolitan area.

  • Nonmetropolitan areas are considered underserved if they have a median income at or below 120 percent of the state nonmetropolitan median income or the nationwide nonmetropolitan median income and a minority population of 30 percent or greater; or a median income at or below 95 percent of the greater of the state nonmetropolitan median income or the nationwide nonmetropolitan median income.

In an effort to further broaden our TAH lending capabilities, in early 2010, we began allowing Program Plus Seller/Servicers to sell us cash mortgages supported by project-based Section 8 contracts, Land Use Restriction Agreements, tax abatements, and through a waiver process, certain cash mortgages nearing the end of the Low-Income Housing Tax Credit compliance period. Additionally, we have expanded our Capital Markets ExecutionSM (CME) product to include TAH immediate cash mortgages, giving you and your borrowers access to the benefits of securitization including a more streamlined, yet still flexible, path to funding and more competitive pricing than a typical portfolio execution.

Learn more about our affordable financing options on our Multifamily Product Information page.

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