DHA

DHA – Dallas, TX

128-unit, 2-story garden-style apartment community built in 2007 with wood-frame construction and brick exterior; 143.9K SF serves as affordable housing operated by Dallas Housing Authority for low-to-moderate income residents paying ~30% of income as rent. Unit-level finishes include dishwasher, washer/dryer, and ceiling fans; community amenities comprise job training center and playground. Located in a car-dependent area (Walk Score 38) with no specified parking configuration; property is part of DHA's 31-property, ~5,000-unit portfolio across North Texas and is not a market-rate acquisition opportunity.

Affordability Risk in Immediate Trade Area; Property Positioned for Workforce Renters

The 1-mile radius presents a challenging affordability environment: median household income of $36.9K against an affordability ratio of 31.4% signals renters are stretched thin, with 38.1% of households earning under $25K. This low-income concentration (38.1% + 20.3% = 58.4% under $50K) indicates DHA functions as workforce housing dependent on rent-burdened tenants with limited economic cushion. The 3-mile ring shows material improvement—affordability ratio drops to 22.5% with median income of $65.5K and income skew toward $50K–$150K brackets—suggesting the property sits at the boundary between distressed core and moderate-income suburban ring. The 5-mile radius reveals a fundamentally different market: median income of $78.8K, 61.2% renter concentration (highest of the three), and 21.5% high-income earners signal affluent suburban renters, but this expanded geography masks the property's true immediate demand profile. Retention risk and operational margin pressure are acute if rent growth outpaces the 1-mile cohort's wage trajectory.

Appraisal Summary – DHA

The property carries a single 2025 appraisal of $28.2M ($220.3K per unit), with improvements representing 91.2% of total value and land just 8.8%—a split typical for stabilized garden apartments built in 2007 but offering limited redevelopment optionality without significant land value appreciation. The 0.0% YoY change suggests flat market positioning, though the absence of historical appraisals prevents trend analysis and obscures whether prior appreciation has stalled or if this reflects a recent acquisition baseline. Without comparable per-unit benchmarks for the submarket and asset class, the $220.3K value sits in a range that warrants underwriting sensitivity to cap rate movements and unit economics.

The 4.0 rating on just 10 reviews reflects limited feedback depth, but the 40% five-star concentration and stable 4.0 prior-period average suggest baseline operational adequacy. The single negative review (2021) flagged leasing office and maintenance friction, while a 2022 four-star review confirmed "typical problems" persist in those functions—indicating chronic underperformance rather than acute failure. With 60% of recent ratings at 4+ stars and no low-star reviews since 2021, management appears to have arrested deterioration, though the sparse and dated review pool provides insufficient signal on current condition to confidently validate an investment thesis.