WASHINGTON - HUD today announced that its Federal Housing Administration (FHA) is expanding access to quality rental housing by allowing Build to Rent communities to qualify for FHA-insured financing under two of its Multifamily mortgage insurance programs. Effective immediately, this update makes it easier to finance new rental homes and helps increase the supply of rental housing, particularly in light of manufactured housing innovation.

“America needs more affordable housing,” said Secretary Scott Turner. “We’re eliminating barriers to spur development, expand rental options, and improve housing affordability for hardworking American families.”

Build to Rent communities are multifamily rental properties that consist of single-family homes, duplexes, or triplexes, including both site-built and manufactured homes. These properties will now be treated under the same terms and conditions as traditional multifamily rental developments, subject to the specific requirements outlined in today’s Mortgagee Letter.

“Expanding housing supply, including new rental housing, is essential to improving affordability,” said Joe Gormley, currently overseeing the FHA and Office of Housing. “Combined with other initiatives we are working on at HUD, including chassis removal in our manufactured housing programs, we are unshackling the market to deliver housing where it’s needed most.”

FHA’s updated policy reflects growing demand for single-family, duplex, and triplex rental housing, as well as the expanding presence of professionally managed Build to Rent developments. The policy applies to FHA's Section 221(d)(4) program for new construction and Section 223(f) program for acquisition or refinancing of recently developed rental communities.

This change supports President Trump's efforts to remove barriers to housing and aligns with Executive Order 14376, Stopping Wall Street from Competing with Main Street Homebuyers.

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