Affordable Housing vs. Attainable Housing

The terms affordable housing and attainable housing are often used interchangeably, but they represent two distinct segments of the housing market. 

Understanding the difference is important for real estate investors because it can help you evaluate risk and identify investment opportunities that suit your goals.

In this article, we’ll explain affordable housing vs. attainable housing so you can choose the strategy that works best for you. Then we’ll show you how to invest in either model without high upfront costs, time requirements, or prior experience.

Affordable housing refers to units that are reserved for low- to moderate-income households and often supported by government programs.

Examples include:

For investors, affordable housing offers stable demand, as the need for lower-cost housing remains high in many markets. You might also be eligible for tax credits and/or government-backed financing (depending on the program). 

However, these properties tend to come with additional regulations, compliance requirements, rent restrictions, and reporting obligations that don't apply to traditional market-rate investments. So it’s important to research the affordable housing program you’re considering before investing. 

Attainable housing refers to market-rate housing that is naturally affordable to middle-income households without government assistance. Naturally affordable is typically defined as costing less than 30% of the local median household income. If, for example, the median household income in the area is $80,000, attainable housing would cost no more than $2,000 per month (in rent or mortgage payments). 

Attainable housing often includes:

Attainable housing has become a growing area of interest for investors as housing affordability challenges have expanded beyond lower-income households. In many markets, teachers, healthcare workers, first responders, and other essential workers are being priced out of the current housing inventory, creating opportunities for investors to supply attainable homes.

In addition to the high demand for attainable housing, investors appreciate the flexibility of this sector; since these properties operate within the traditional market, there are no additional governmental regulations, as we see with affordable housing. 

However, increased investor competition in this niche may make deals more difficult to find. In many markets, the greatest return potential in this space comes from developing attainable housing from the ground up by:

With high consumer demand and return potential, both affordable and attainable housing can be strong investment strategies. But the time, complexity, and upfront cost of both options can deter investors. Luckily, there is a way to invest in either strategy without accepting legal and financial responsibility for the project. 

With real estate syndication, you can invest in pre-vetted deals that are professionally managed by a real estate sponsor. The sponsor handles every aspect of the deal from acquisition and construction to regulatory compliance and property management. And, because multiple investors can buy into a given project, the upfront investment for each investor is substantially less than direct ownership. While investment minimums vary by project, you may be able to buy into a multi-million dollar deal for as little as $25,000. 

If you’re interested in investing in affordable or attainable housing through syndication, consider Gatsby Investment. Gatsby has established an impressive track record of returns by developing attainable housing in high-demand neighborhoods of Los Angeles. By increasing the supply of naturally affordable homes through ground-up development, Gatsby has provided average annualized returns of 22.3% for investors from 2016-2025. 

Explore Gatsby’s real estate investment opportunities and expand your portfolio with a syndicated affordable or attainable housing project today!