A Civic Education Tool · Washington, DC · 2026 figures

What does a social housing unit
actually cost?

Public discussion of social housingSocial housing generally refers to housing that is publicly, nonprofit, or cooperatively owned to provide long-term affordability and housing stability. Affordable housing refers to housing that is priced below market rates to be affordable to lower- or moderate-income households. rarely engages with the math. A unit has to be built, financed, and operated — and if the rent is capped below what the market would pay, the shortfall must come from somewhere. This calculator shows where. Whether the housing is built by a government agency, a nonprofit developer, or a private developer, the financing structure and underwriting requirements are the same. The math doesn't change based on who holds the deed. Adjust the rent you think is fair. Adjust the assumptions. See the gap the government needs to fill.

01

Choose the housing you want

Household assumption: 1 person · Net unit: 500 sf
50% AMI
Household earns $57,375/yr · pays max $1,394/mo rent
02

The subsidy required

Public subsidy required per unit
$435,083
To build one studio affordable to a 1-person household at 50% of Area Median Income, the District must contribute $435,083. That's the gap between the $453,573 it costs to build and the $18,490 of debt the rent can repay.
03

Pull the levers

Policy can change the inputs. Regulatory reform can lower construction costs. Better rent-recovery mechanisms can lower financing costs. A tax abatement lowers operating costs. Each lever shifts the subsidy.

$500/sf
DC baseline: $500/sf. Lower = less regulation, simpler codes.
635 sf
DC baseline: 635 sf. Smaller units = cheaper to build.
6.50%
Lower rates = more debt the rent can carry = less subsidy.
$0 if city donates land
Use cash-flow loan (4% / 30yr)
Pledge residual cash to a second loan
Cap available capital subsidy
Model limited public funding scenario
$12,000
DC baseline: $12,000/unit. Insurance & utilities matter.
0.85%
Set to 0% to model a full tax abatement.
04

Now scale it to a promise

When a candidate says "we will build X units of social housing," this is the math behind the pledge.

1,000 units
Total public subsidy required
$435.1M
1,000 units × $435,083 per unit
What this is equivalent to
Figures approximate, for civic-tradeoff scale only. Verify with latest official OCFO numbers.
05

Show the math

Methodology. Numbers follow a standard DC affordable-housing pro-forma. Max rent = 30% of household income at the target AMI, less utility allowance. Max debt = present value of (NOI ÷ 1.20 DSCR) over 30 years at the permanent-loan rate. Subsidy = total development cost − max debt − 4% LIHTC equity (where applicable). 4% LIHTC equity is modeled at 90% of eligible basis × 4% × 10 years × $0.77 per credit dollar, available for units at ≤80% AMI under the average-income test. Property tax assessed at 70% of TDC. Developer fee = 10% of project costs. Sources for AMI limits: DHCD 2026 Maximum Income, Rent and Purchase Price Schedule (Washington MSA MFI of $163,900 for 4-person household).

Caveats. This is a simplified model for public education, not detailed project underwriting. Real deals use LIHTC equity, HPTF gap funding, bonds, and local programs in layered capital stacks — any of which can reduce the District's direct cash outlay relative to the subsidy number shown here. The point of the tool is to demonstrate order of magnitude to deliver affordable housing units at scale.

© 2026 Stellant Real Estate Advisors LLC. For educational purposes only; not investment or policy advice.
Stellant Real Estate Advisors