NMHC Releases 2012 Income/Expense Benchmarks for Student Housing

NMHC Releases 2012 Income/Expense Benchmarks for Student Housing

WASHINGTON, D.C. – September 25, 2012 – (RealEstateRama) — As college and university enrollments have grown almost 40 percent in the past decade, squeezing schools’ supply of on-campus housing, demand for private, off-campus student housing options is growing. Responding to that trend, the National Student Housing Council (NSHC) and the National Multi Housing Council (NMHC) today released their 2012 Off-Campus Student Housing Income and Expense Benchmarking Survey. The only such survey specifically targeting the off-campus student housing sector, it includes data on 370 properties from 25 companies in 46 states.

Key findings include:

  • As found in previous studies, off-campus student housing properties are continuing to lease predominantly “by-the-bed,” with every student in an apartment responsible for his or her own lease. Properties in this survey that leased by-the-bed reported earning less per bed in rental income and spending larger percentages of their rental income on operating expenses than properties that lease by-the-unit, but this may be due to product mix (by-the-unit properties typically have two or more beds per unit). It is interesting to note that prior studies have shown that on a per property basis, more income is derived at properties that rent by-the-bed.
  • Late-fee income varies tremendously by property. For example, late-fee income ranged from $13.41 to $110.61 per bed for mid- to high-rise properties that leased by-the-bed. However, for garden-style properties that leased by-the-unit, late-fee income ranged from $22.26 to $114.26 per bed. A property’s location also factored into the late-fee income averages.

Data is provided by type of leasing structure; the report also breaks out the data results by property age, property type, property size and ownership/management structure. In addition to the general results, which provide the full aggregate data for all 46 states, the survey includes select regional results and state-level data for Alabama, Florida, Georgia, Indiana, Michigan, North Carolina, Ohio and Texas.

The survey report is given complimentary to all attendees at the upcoming NMHC Student Housing Conference & Exposition, October 1-2 at the Arizona Biltmore, Phoenix, Ariz. Conference registration information is available at: http://www.nmhc.org/goto/SHC12reg.

It is also available for purchase by both NMHC and NAA members ($750) and nonmembers ($1,500). NMHC also offers a student housing research package, which gives purchasers access to all of the NMHC and NSHC annual student housing research reports. NMHC and NAA members pay $1,700 and nonmembers pay $2,500 for the package.

Sample tables showcasing the report’s percent of rental income and dollars per bed analysis are below:

Expenses as a Percent of Rental Income Properties Built 2006-Present in Midwest Region
10th Percentile 50th Percentile 90th Percentile  Average
Rental Income 100.0% 100.0% 100.0% 100.0%
Total Operating Expenses 34.2% 57.1% 71.5% 54.5%
Total Compensation 6.2% 10.8% 18.8% 12.1%
Maintenance and Repairs 3.1% 4.3% 9.4% 5.0%
Taxes 2.5% 7.6% 21.5% 9.9%
Insurance 0.7% 1.3% 2.0% 1.3%
Marketing 0.8% 2.1% 4.5% 2.2%
Turnover 0.4% 1.7% 2.9% 1.6%
Utilities 4.3% 9.0% 18.2% 10.2%
Late-Fee Income 0.1% 0.8% 1.7% 0.8%

Note: Figures are a percent of net rent and do not include other income in the denominator. (n=18) 

Expenses Shown in Dollars Per Bed Properties Leased By-the-Unit in the South Region
10th Percentile 50th Percentile 90th Percentile  Average
Rental Income $4,699.45 $6,552.85 $7,780.95 $6,198.51
Total Operating Expenses $2,425.97 $3,015.12 $4,244.26 $3,102.01
Total Compensation $520.54 $636.22 $956.32 $697.56
Maintenance and Repairs $129.90 $242.37 $433.23 $252.41
Taxes $296.14 $534.44 $748.96 $532.04
Insurance $95.55 $121.69 $180.70 $133.25
Marketing $106.54 $154.32 $281.21 $173.21
Turnover $149.88 $195.39 $313.31 $210.10
Utilities $133.09 $359.49 $659.57 $386.32
Late-Fee Income $24.45 $54.78 $107.33 $51.55

Note: Figures are per bed. (n=35)

For more student housing information or resources, please visit www.nmhc.org/goto/studenthousing.

NSHC is a subsidiary of NMHC.

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NSHC was formed in 2011, nine years after NMHC launched the first-ever student housing conference, and serves to encourage information exchange and conduct research to help inform the investment decisions and best practices off-campus student housing developers. Based in Washington, D.C., NMHC is a national association representing the interests of the largest and most prominent apartment firms in the U.S. For more information, contact NSHC at 202/974-2300, e-mail ">, or visit NSHC’s web site at www.nmhc.org/goto/StudentHousing.

Jim Lapides, 202/974-2360,


Based in Washington, DC, National Multi Housing Council (NMHC) is a national association representing the interests of the larger and most prominent apartment firms in the U.S.  NMHC's members are the principal officers of firms engaged in all aspects of the apartment industry, including owners, developers, managers and financiers.  Nearly one-third of Americans rent their housing, and more than 14 percent live in a rental apartment.


Tel: 202.974.2300
Fax: 202.775.0112

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