Built-for-Rent: How a fast-growing rental model is reshaping multifamily investment

Over the years, I’ve watched housing demand steadily outpace supply, and with it, I’ve seen new models emerge to meet renter needs and attract investor interest. One of the most promising? Built-for-Rent (BFR). Whether it’s called Build-for-Rent, Build-to-Rent, or Built-for-Rent, this rapidly expanding sector has become impossible to ignore.

In Walker & Dunlop’s latest white paper, The Growth of Built for Rent, we unpack the forces propelling this segment, its long-term investment potential, and the strategies savvy investors are using to seize the opportunity.

Why BFR demand is accelerating

Today’s renters want more than affordability. They want flexibility, space, and quality. BFR communities, which offer the privacy and layout of single-family homes without the burdens of ownership, are becoming the preferred choice for a growing demographic of renters-by-choice.

According to recent data and trends I’m seeing, discretionary renters, ranging from young professionals and families to downsizing retirees, are turning to BFR for the blend of lifestyle and convenience. With features like garages, fenced yards, and home-office setups, these purpose-built communities meet evolving expectations, especially in a market where:

• For-sale housing is limited
• Mortgage rates remain elevated
• Affordability gaps continue to widen

Walker & Dunlop’s internal analysis vividly illustrates this shift: in markets like Columbus, OH, renting a comparable BFR home can cost 27 percent less than owning.

The investment case: Institutional-grade stability

BFR properties deliver the physical feel of traditional homes with the scalability and stability of multifamily assets. With consistently high occupancy rates (around 96 percent, according to Fannie Mae research), BFR offers strong, steady returns even in fluctuating markets.

I see several key benefits for investors:

• Diversified product types, from single-family detached homes to townhomes and horizontal multifamily.
• High per-unit values, especially for single-family detached BFR assets.
• Scalable portfolios are ideal for both private and institutional investors targeting resilient rental demand.

Walker & Dunlop’s strategic edge in BFR

With over $3.4 billion in BFR transactions across the United States, Walker & Dunlop is a market leader in this emerging space. Our integrated platform supports clients throughout the BFR lifecycle, from site selection and entitlement to financing and asset disposition.

We help clients capitalize by offering:

• Agency financing expertise, including lease-up flexibility from Fannie Mae and Freddie Mac.
• Broad capital access through our Capital Markets team, with connections to life companies, banks, and private debt funds.
• Equity placement, structuring joint ventures with top-tier institutional investors.
• Strategic advisory, delivering feasibility assessments, risk mitigation, and exit strategies.
• Comprehensive valuations from our Apprise team, delivering market-specific insights to empower smart, confident investment decisions.
• Brokerage and advisory expertise from our WDIS team, connecting BFR buyers and sellers through tailored guidance, targeted marketing, and national reach.

Overcoming BFR’s unique challenges

Navigating the nuances of BFR requires expertise in zoning, cost control, and demand forecasting. Walker & Dunlop supports clients in overcoming:

• Zoning mismatches: Our relationships with local authorities and knowledge of entitlement processes ensure smoother development paths.
• Rising land and construction costs: We identify cost-effective markets and structure deals to preserve margins.
• Market saturation risks: Proprietary data analytics help clients evaluate absorption trends and long-term demand.

From a $346mm portfolio sale across the Southeast to permanent financing solutions in Colorado and Tennessee, our track record includes landmark BFR transactions that validate our leadership in this space.

Seize the moment in BFR

Built-for-Rent is no passing trend; it’s a structural evolution in American housing. For investors, developers, and lenders, the time to act is now.

I encourage you to explore our full whitepaper to gain deeper insights into BFR investment strategies and learn how the Walker & Dunlop team can help you navigate this growing sector with confidence.

Download The Growth of Built-for-Rent today.

Want a bit more information before wading in? Here are some questions our clients often ask, with answers that I hope will help you further explore key themes in the build-for-rent space.

Frequently Asked Questions about Built for Rent (BFR)

What is Built-for-Rent (BFR)?

Built-for-Rent refers to purpose-built rental communities consisting of single-family homes, townhomes, or horizontal apartments. Unlike scattered-site rentals, these communities are designed and constructed specifically for renters, offering the feel of homeownership with the flexibility of leasing.

What is the right term? Build-For-Rent, Built-for-Rent, Build-to-Rent and Built-to-Rent?

Trick question-they are all correct and have the same meaning

How is BFR different from traditional single-family rentals (SFR)?

Traditional single-family rentals are often individually owned homes that have been retrofitted for rental use. BFR properties, on the other hand, are professionally developed and managed communities optimized for long-term rental occupancy, offering features like cohesive design, on-site amenities, and dedicated property management.

Why are renters choosing BFR?

BFR appeals to a diverse range of renters, including millennials, young families, and empty-nesters. These renters want the benefits of a home, such as more space, private yards, and garages, without the financial burden of ownership. Rising home prices, high interest rates, and a desire for mobility are also driving this trend.

Is BFR a long-term investment opportunity or a short-term trend?

BFR is a structural evolution in the housing market. With the continued affordability gap in homeownership and demographic shifts favoring flexible living arrangements, BFR is well-positioned for sustained growth and long-term value creation.

How does Walker & Dunlop support BFR developers and investors?

Walker & Dunlop offers a fully integrated platform for BFR success, from securing construction and permanent financing to equity placement and advisory services. With over $3.4 billion in BFR transactions nationwide, we help clients navigate every phase of the investment lifecycle.