S&P Global Ratings Report Details Trends in Affordable Rental Housing Bond Subsectors

S&P Global Ratings released a report examining the financial performance of affordable rental housing financed by private activity bonds. The agency noted divergent trends across the nonmilitary, stand-alone rental housing bond subsectors. In the mobile home park subsector, revenue has been outpacing expenses, leading to improved debt service coverage and positive rating actions.

The report breaks down the affordable rental sector into four subsections: age-restricted, Section 8, mobile home parks, and unenhanced affordable housing. While age-restricted housing is recovering from pandemic volatility, it still faces challenges in expense management. The agency also noted a $585 million drop in outstanding debt.