Module 2
Market Area Analysis
Identifying and analyzing your market area's demographics and housing needs
Lesson 1
Defining Your Market Area
The market area is the geographic region from which you expect to draw applicants. Defining it correctly is crucial for your AFHMP.
Methods for Defining Market Area
- Geographic radius (e.g., 3-5 mile radius from property)
- Census tracts or block groups
- County or municipal boundaries
- Zip codes
- Transportation corridors
- School districts (for family properties)
- Employment centers
Example:
Example Market Area Definition: "The market area for Sunrise Apartments consists of Harris County, Texas, with primary emphasis on census tracts 2345, 2346, and 2347, representing a 5-mile radius from the property. This area encompasses major employment centers, public transportation routes, and community services relevant to our target population."
Your market area should be realistic and based on actual expected sources of applicants, not arbitrarily drawn.
🔑 Key Points
- Market area should reflect where applicants will come from
- Consider transportation, employment, and services
- Use recognizable geographic boundaries
- Document your reasoning for the chosen area
Lesson 2
Demographic Data Collection
Required Demographic Information
You must collect and analyze demographic data for your market area, including:
- Population by race and ethnicity
- Income levels and distribution
- Age distribution
- Household composition (families, singles, elderly)
- Persons with disabilities
- Language spoken at home
- Housing tenure (owners vs. renters)
- Poverty rates
Data Sources
- U.S. Census Bureau (Decennial Census)
- American Community Survey (ACS) 5-year estimates
- HUD User datasets
- Local housing authorities
- State housing agencies
- Local planning departments
Always use the most recent data available. For census data, use 5-year ACS estimates for smaller areas.
Example:
Example Demographic Summary: Market Area Demographics (Harris County, Texas - Census Tracts 2345-2347): - Total Population: 45,230 - Hispanic/Latino: 42% - White (Non-Hispanic): 35% - Black/African American: 18% - Asian: 4% - Other: 1% - Median Household Income: $48,500 - Below Poverty Line: 16% - Persons with Disabilities: 11% - Limited English Proficiency: 28% (primarily Spanish)
🔑 Key Points
- Use official government data sources
- Collect comprehensive demographic data
- Focus on protected classes
- Update data when census information is released
Lesson 3
Identifying Underserved Populations
A key purpose of AFHMPs is to ensure that groups with lower rates of application receive targeted outreach.
Comparing Demographics
You must compare your property's tenant population to the market area demographics to identify:
- Groups underrepresented in your tenant population
- Groups experiencing housing discrimination
- Populations with special housing needs
- Communities with limited access to housing information
If your tenant population significantly differs from market area demographics, your AFHMP must address this disparity.
Special Considerations
- Language barriers - provide materials in languages spoken in the market area
- Accessibility - ensure marketing reaches persons with disabilities
- Transportation access - consider mobility limitations
- Digital divide - not everyone has internet access
- Cultural competency - respect cultural differences in housing preferences
Example:
Example Analysis: "Market area is 42% Hispanic/Latino, but current tenant population is only 18% Hispanic/Latino. To address this disparity, we will: - Advertise in Spanish-language newspapers and radio - Partner with Hispanic Chamber of Commerce - Provide bilingual staff and marketing materials - Conduct outreach at Latino community centers"
🔑 Key Points
- Compare tenant demographics to market area
- Identify underrepresented groups
- Target marketing to underserved populations
- Address barriers to housing access