How to Underwrite a Multifamily Market with Anna Myers

🎙️ Introduction

Since 2006, Anna Myers has been investing long-distance, starting with single-family homes and land before moving into multifamily. Today she and her investors focus on value-add Class C properties, where targeted improvements can force appreciation and generate strong returns. In this session, Anna breaks down her multifamily market evaluation criteria, explaining how she underwrites markets with a clear focus on jobs, income, housing supply, and long-term fundamentals.

📌 Key Takeaways

✅ There Is No National Market – Each metro area is unique, shaped by its own economy, employers, and demographics.

✅ Jobs Drive Everything – Job growth, multiple strong employers, and diverse industries are the #1 factor for a healthy multifamily market.

✅ Income Thresholds Matter – A median household income of $40,000+ ensures tenants can afford rents at 3x income ratios.

✅ Unemployment Benchmark – Target neighborhoods with unemployment under 8%.

✅ Housing Supply Trends – Understand how much Class A inventory is being built. Oversupply trickles down, creating vacancies in B and C properties.

✅ Price-to-Rent “Goldilocks Zone” – Ideal range: 14–22. Below 14 → tenants can buy; above 22 → difficult for cash flow.

✅ Rent Growth – Cap assumptions at 4% conservatively, even if forecasts are higher.

✅ Median Rent Floor – Avoid markets where median rents are below $800; collections become difficult.

✅ Path of Progress – Look for rising incomes before housing prices spike.

✅ Laws & Regulation – Favor pro-landlord markets to reduce risk of tenant abuse of the system.

✅ Occupancy Rates – Watch both physical and economic occupancy; under 95% signals potential collection problems.

⏱️ Underwriting Criteria Framework

1. Job Market – Growth, employer count, industry diversity.

2. Median Income – $40k+ household income baseline.

3. Unemployment – Below 8%.

4. Housing Supply – Track recent and pipeline construction.

5. Price-to-Rent Ratio – 14–22 sweet spot.

6. Rent Growth – Conservative cap of 4%.

7. Median Rent – $800+ floor for viable collections.

8. Path of Progress – Rising incomes vs. lagging housing prices.

9. Tenant Laws – Prefer landlord-friendly jurisdictions.

10. Occupancy Rates – Aim for 95%+ economic occupancy.