Service-enriched properties are not only good for residents, they’re good for the bottom line, according to a new study from Stewards of Affordable Housing for the Future (SAHF) and Abt Global.
Developments with resident services generate 26% higher net operating income (NOI)—nearly $1,200 more per unit annually—than comparable properties without these services, reveals the latest research.
“At a time of shrinking subsidies and rising housing costs, we can no longer treat resident services as optional. They are essential infrastructure for strong property performance, building resilient communities and sustainable affordable housing,” says SAHF interim CEO Eileen Fitzgerald.
Findings link resident services—programs, services, and referrals that are provided in a housing context and designed to support greater stability and well-being for residents—to material NOI gains, a key indicator of property health used in underwriting, asset management, and investment decisions.
Specifically, for every $100 per unit invested in resident services, properties realized $259 in additional NOI and $397 in total revenue the following year, underscoring the strong financial return on these investments, reports SAHF.
The Abt Global study, “The Impact of Resident Services on Property Financial Performance,” analyzes data from 248 properties across 19 diverse housing organizations from 2015 to 2019 and links resident services to material NOI gains, a key indicator of property health used in underwriting, asset management, and investment decisions. This time period was used to mitigate concerns about disruptions and distortions in properties’ finances during and in the immediate aftermath of the COVID pandemic.
“In particular, service-enriched properties are associated with higher revenue and marginally lower arrears and levels of bad debt the year following resident services compared to non-enriched properties,” says the report, noting, however, that service-enriched properties are associated with higher maintenance and security expenses.
Overall, evidence from the research supports incorporating resident services as eligible operating costs in development pro formas, underwriting standards, and ongoing property budgets as well as scoring incentives in state qualified allocation plans, rather than treating them as value-added enhancement, according to SAHF.
A separate report, “The Case for Resident Services,” provides complementary post‑COVID data from SAHF’s members—a collaborative of 13 leading nonprofit affordable housing developers—and shows that resident services coordination is strongly associated with improved housing stability, financial resilience, and health outcomes.
“Safe, affordable housing is the foundation for a secure future, but creating that building is only part of the solution—helping residents thrive is just as important,” says Shena Ashley, president of the Capital One Insights Center, which shares key trends with changemakers to build thriving communities and develop financial tools that enrich lives.“SAHF’s research demonstrates that resident services are essential and strongly associated with improved housing stability and financial security for residents. From increasing on-time rent payments to improving resident financial resilience and health outcomes—we know these integrated wraparound services empower residents to thrive and can strengthen the community as a whole.”
Those working to provide affordable housing and services see firsthand the positive effects on residents and their communities, but until now they have lacked clear data to support those observations, according to Ashley.
The findings will resonate with different stakeholders working throughout the affordable housing field, she says.
According to the companion study, properties with resident services demonstrate lower rates and amounts of rent arrears across most subsidy types, income levels, age groups, and geographies, with households at these properties experiencing 24% lower arrears rates at both the $100 and $500 thresholds than households in properties without services. Additionally, eviction‑related moveouts are dramatically lower, with just 1.2 eviction‑related moveouts per 100 households in service‑enriched SAHF properties compared with 7.3 eviction filings per 100 renters nationally.
“This research confirms what we have long known: When residents thrive, communities thrive,” adds Ismael Guerrero, chair of the SAHF board of directors and CEO of Mercy Housing. “Service-enriched housing helps residents remain stably housed, strengthens community stability, and protects public and private investment—demonstrating that resident services are essential to long-term resilience.”
Residents in properties offering employment and or financial services saw a 5% increase in labor force participation from 2023 to 2024 compared with a 1% increase for residents in properties with no services.
SAHF also reports that across multiple measures, residents in service-enriched properties reported substantially better access to health care than comparable low-income populations nationwide.
Together, the Abt Global analysis and SAHF’s “The Case for Resident Services” show that coordinating and providing resident services results in significant enhancements to NOI, according to SAHF leaders. In a market defined by declining federal subsidies and a severe shortage of affordable units, the findings point to a disciplined way to strengthen asset performance and support long‑term portfolio value in affordable housing.
The Abt Global research was supported and facilitated by SAHF in partnership with the Housing Partnership Network, NeighborWorks America, Multifamily Impact Council, and the National Leased Housing Association, with additional financial support from the Capital One Insights Center and National Equity Fund.