Multifamily Rental Definition
Multifamily rentals, which are also known as multi-dwelling units/MDUs, comprise multiple but separate living units within a structure or structures. A common example is an apartment building, but multifamily rentals can also come in the form of duplexes, triplexes, quadplexes, mixed-used properties, and independent living facilities. Smaller HUD loans, like the FHA 203(b) loan can finance 1-4 unit properties. HUD multifamily loans, such as HUD 221(d)4) and HUD 223(f) loans, can finance apartment buildings, mixed-used properties (with limits on the amount of commercial space), and independent living units.