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Allen Wilson Phase III, Decatur, GA; Market Study
to its respective income cohorts by percentage. This number does not reflect lower income
households losing population, as this may be a result of simple dollar value inflation.
3B. DEMAND FROM EXISTING HOUSEHOLDS
Demand for existing households is estimated by summing three sources of potential tenants. The
first source (2a.) is tenants who are rent overburdened. These are households who are paying
over 35 percent for family households and 40 percent for senior households of their income in
housing costs. This data is interpolated using CHAS data based on appropriate income levels.
The second source (2b.) is households living in substandard housing. We will utilize this data to
determine the number of current residents that are income eligible, renter tenure, overburdened
and/or living in substandard housing and likely to consider the Subject. The third source (2c.) is
those seniors likely to move from their own homes into rental housing. This source is only
appropriate when evaluating senior properties and is determined by interviews with property
managers in the PMA. Because the Subject will not target seniors, we have not accounted for
senior homeownership conversion in our demand analysis.
In general, we will utilize this data to determine the number of current residents that are income
eligible, renter tenure, overburdened and/or living in substandard housing and likely to consider
the Subject.
3C. SECONDARY MARKET AREA
To accommodate for the secondary market area, the Demand from Existing Qualified
Households within the primary market area will be multiplied by 115% to account for demand
from the secondary market area.
Our conversation with the Subject’s property manager indicates that approximately 15 percent of
the Subject’s tenants can be expected to come from outside the PMA boundaries.
3D. OTHER
DCA does not consider household turnover to be a source of market demand.
4. NET DEMAND, CAPTURE RATES AND STABILIZATION CALCULATIONS
The following pages will outline the overall demand components added together (3(a), 3(b) and
3(c)) less the supply of competitive developments awarded and/or constructed from 2000 to the
present.
ADDITIONS TO SUPPLY
Additions to supply will lower the number of potential qualified households. Pursuant to our
understanding of DCA guidelines, we deduct additions to supply allocated since 2010 to present
and those that will be constructed through 2014 that are considered directly competitive.
Novogradac & Company, LLP 45