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,

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