What types of Multifamily rates are you guys getting?

What types of Multifamily rates are you guys getting? I know normal residential is getting 5.3% now. What happens to all the 5Caps now? Are we gonna see major Rent Increases across the board to compensate for the lack of NOI?

Top Line expenses increasing. Insurance, Taxes, Utilities, Pay Roll.
Also, the Stimmy Checks are cut off…

That doesn't really make sense. First it isn't a single variable. Interest rates can go to 40% and rent could also drop at the same time if the demand isn't there. We want to try to take complex multivariable problems and simplify them down to a single metric but that is typically where people start making errors in their decision making processes.

Why would NOI decrease as a function of rates?

It’s not. Rates are increasing to offset the deficit created by reduced NOI. Specifically bad debt, increased debt service, and R&M.

Got it, I see that. How do we know it's not in response to rising interest rates, though?

I suppose it could have the reverse effect if you are raising rates and pricing yourself out of your market, resulting in higher vacancy loss, and lower gross income as a result.

Interest rates could have an effect on your overall debt service, but the only direct result you could see from rising interest rates would be greater demand for affordable rental housing since home purchase might not be a viable option.