Fannie Mae takes step that may fuel single-family rental growth

Fannie Mae agrees to guarantee $1B of debt backed by single-family rentals
  • Fannie Mae has agreed to guarantee up to $1 billion in debt collateralized by single-family rental properties owned by an institutional investor.
  • That sort of backing could fuel the growth of single-family rentals by lowering the cost of buying and holding single-family rentals for institutional investors.

The government has begun subsidizing the institutionalized single-family rental market, signaling an endorsement of Wall Street’s buy-to-rent housing bet as homeownership lags.