REAL ESTATE GUIDE
Student Housing Underwriting Guide
Student housing underwriting requires bed-based rent, academic-year timing and operating assumptions that differ from conventional apartments.
In this guideWhat the analysis measuresCalculation frameworkUnderwriting reviewHow to use the result
What the analysis measures
Model beds, room types, rent-paying months, occupancy and ancillary income. A 10- or 11-month contract structure changes annual revenue per bed.
Calculation framework
Reflect summer use, marketing, turnover, utilities, staffing and higher operating intensity where relevant. State whether rent is inclusive.
Underwriting review
Phase construction and lease-up around academic intake dates. Missing one intake can delay stabilization by a full year rather than a few months.
How to use the result
Review cost per bed, NOI margin, yield on cost, DSCR, debt yield and downside occupancy alongside investor returns.