RK#465 The hidden risk behind projected rent growth

Send us Fan Mail This episode warns that projected rent growth assumptions in multifamily offering memorandums (often 3–4%+) can quietly break deals, especially in 2026. It argues sellers and brokers use optimistic pro formas—based on national averages, peak 2021–2022 growth and ignoring concessions and lease-up competition—to make returns look stronger than the actual submarket supports. In today’s higher-rate environment, missing rent growth can reduce DSCR, erase cash-on-cash returns, and ...