Step 1: Select County
- Choose the county where your project is located.
- The tool will automatically apply relevant market data and cost assumptions.
Step 2: Input Land Value
- Choose from Low, Medium, or High.
- These categories reflect land costs aggregated from across the state of Utah.
Step 3: Input Rental Rates
- Choose from Low, Medium, or High based on expected lease rates aggregated from across the state of Utah.
Step 4: Choose Target IRR
- Use the slider to select an Internal Rate of Return (e.g., 12%, 15%, etc.).
- This is the minimum return investors expect in order for the project to be considered viable. Broadly speaking, IRR for Missing Middle Housing projects correspond to the following ranges:
- <10% public-private partnerships, mission-driven development, subsidized below-market-rate
- 10%-15% market-rate projects in established markets such as cities, towns and larger suburbs
- >15% market rate projects in less established markets or where risk is present due to incompatible zoning, etc.
Step 5: Review Feasibility Outcome
- The tool will analyze your inputs and provide a Feasibility Rating of “Feasible” or “Not Feasible” based on how projected returns for the site test scenarios developed for the “Utah Opportunity Sites” exhibit compare to your target IRR