Affordable Housing Break-Even: $328K Monthly Revenue by Month 32

Fixed costs $29.6K-$47.3K/mo Run-rate base

Contribution margin 100% Before overhead

Break-even revenue $29.6K/mo Revenue floor

Break-even timing Month 32 Model breakeven

Break-even calculator

This calculator tests monthly rent against direct costs and the fixed cost base.

Lean Base Full

Monthly revenue Revenue sets the cash pool that covers fixed overhead. $ Low rent High rent Variable expenses Use direct costs that rise with occupancy if you have them. $ Low direct High direct

Money available to cover fixed costs $8,250 $8,250 revenue - $0 variable expenses

Margin ratio

100%

Covers fixed costs

$37,333 short

Fixed monthly costs This is the monthly overhead your margin must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which affordable housing expenses are fixed, and which move as units lease up?

Cost classification

Break-even reliability depends on separating fixed overhead from unit-linked spend. If maintenance, utilities, insurance, or payroll steps are modeled as flat, the Month 32 break-even point can look cleaner than the cash reality.

Expense	Cost	Break-Even Treatment	Common Mistake
Office Rent	Fixed	Include $2,500 every month as baseline overhead.	Dropping it during slow lease-up months.
Property Insurance	Semi-fixed	Start with $1,800 monthly, then stress-test premium increases as the portfolio grows.	Holding premiums flat through added properties.
Utilities and Internet	Semi-variable	Use the $650 base, then let usage rise with occupied units.	Treating all utility spend as fixed office overhead.
Property Maintenance Reserve	Semi-variable	Use the $2,200 reserve, then flex for repairs, turns, and occupied-unit wear.	Averaging repairs across vacant and occupied units.
Marketing and Advertising	Semi-fixed	Model $1,500 monthly, with heavier pressure during lease-up periods.	Scaling it only as a percentage of rent.
Legal and Accounting Services	Fixed	Include $1,200 monthly for the compliance and admin baseline.	Cutting compliance spend when rent collections lag.
Software and Technology	Fixed	Include the recurring $800 monthly subscription and support spend.	Mixing monthly software with one-time setup capex.
Payroll	Semi-fixed	Model staffing in steps: about $21,833/month in Year 1, rising to $39,500/month in Year 5.	Burying payroll, construction budgets, purchases, or one-time capex inside monthly operating expenses.

How do lean, base, and full lease-up cases change break-even for this affordable housing plan?

Scenario table

No variable costs are listed, so CM ratio stays 100% and break-even depends on rent roll versus payroll, overhead, and lease costs. The model still shows break-even in Month 32, so sale proceeds or other funding must cover the gap.

Planning assumptions only; rent roll, staffing, and lease costs can shift break-even.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean lease-up	$2,200	$0	$33,683	100%	-$31,483	Coverage is thin; one lease barely moves the burn.
Base lease-up	$9,850	$0	$48,533	100%	-$38,683	Full rent roll still leaves a wide monthly shortfall.
Full lease-up	$9,850	$0	$53,450	100%	-$43,600	Higher payroll pushes break-even back without outside funds.

What breaks the break-even plan for this housing portfolio?

Stress test

The plan is thin at full occupancy: $9,850 of monthly rent still sits $38,683 below the Year 3 fixed burden before debt service. Vacancy, higher insurance, extra repair calls, and compliance rework widen that gap fast because variable expenses weren’t modeled.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$48,533/month	$38,683 gap	Full rent roll still misses fixed costs.
Revenue shortfall	Lose the highest listed rent of $1,850/month.	$48,533/month	$40,533 gap	One vacancy at the top rent widens the miss fast.
Fixed-cost pressure	Add one extra month of insurance, maintenance reserve, utilities, and legal and accounting each month.	$54,383/month	$44,533 gap	Compliance and overhead creep push break-even up sharply.
Margin pressure	Add a $2,200 monthly repair spike and turn costs.	$50,733/month	$40,883 gap	Repeated work orders eat the thin operating cushion.
Combined pressure	Lose the highest listed rent and add the extra cost stack plus repair spikes.	$56,583/month	$48,583 gap	Vacancy plus cost creep blows past the rent roll.

Is the land, build, and lease-up plan ready before you commit major capital?

Founder checklist

Test the model against the monthly load before you sign anything. This plan only works if the rent roll, staffing ramp, and cash reserve can carry the Month 32 break-even path while cash stays above the $1.307M trough.

1Owned assets$905K

Verify the $905K purchase stack across the owned properties before you commit, because that cash is locked in long before rent starts.

2Build budget$375K

Verify the $375K construction budget and the Month 5 to Month 16 build start sequence, because delays push cash burn before units can lease.

3Fixed load$11.0K/mo

Verify the $11K monthly overhead from Month 1, because that bill hits before occupancy and has to be covered by rent roll.

4Payroll ramp$262K-$474K

Verify Year 1 payroll of $262K and Year 5 payroll of $474K, because staffing only scales if lease-up keeps pace.

5Rent roll$9.85K/mo

Verify the full listed rent roll of $9,850 per month against $2,950 per month in rented-property lease costs, because the $6,900 spread must help fund overhead and payroll.

6Cash cushion$1.307M

Verify the reserve stays above the $1.307M minimum cash need through Month 59, and do not lock staffing or vendor commitments until lease-up and subsidy assumptions are documented, because Month 32 is the break-even gate.