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Economic Feasibility Analysis - Assumption Checklist
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The data and assumptions requested in this EFA form will allow DHCD to evaluate the potential impacts of any Inclusionary Zoning requirements in excess of what is allowed by the MBTA Communities Act. Please complete this form with all available information and provide source references for each data point as they relate to your MBTA 3A Compliant District(s).
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Revenue SourcesInputSourceNotes/Comments
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Rents by Bed Count (per SQFT)
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Studio/Efficiency $ 5.50
Co-star, MLS, developer interviews
Reflects averages; new large project are higher
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One Bedroom $ 5.00
Co-star, MLS, developer interviews
Reflects averages; new large project are higher
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Two Bedroom $ 4.35
Co-star, MLS, developer interviews
Reflects averages; new large project are higher
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Three Bedroom $ 4.45
Co-star, MLS, developer interviews
Reflects averages; new large project are higher
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Sale Value (per SQFT) $ 960.00 Assessor Records-2021-2023Variation by unit size- 2BR ($900) 3BR ($1000)
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 Sale Value (per Unit)
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Other Income
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Parking Revenue (per month per space) $ - Assume no on site parking for projects
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On-Site Laundry (per month) $ - Laundry in units for virtually all projects
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Other (please list) $ -
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Construction CostsInputSourceNotes/Comments
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Land Acquisition (per unit) $ 87,000.00 Based on 3 projects
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 Land Acquisition (per SQFT)
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Land Development Costs (per unit) $ - Included in hard costs Based on construction cost figures from developers
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Soft Costs (percentage of hard costs)20%Developer interviews
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Hard Costs (per SQFT)
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Residential $ 350.00
Developer & Contractor interviews, BP data
Podium + stick built for most projects; $25 higher for condos reflecting higher quality finishes
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Commercial Stick Built
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Commercial Podium
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Commercial Steel
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Parking Assumptions $ -
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Parking Ratio0.00
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Parking Cost by Type
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Surface (per space)Not applicable
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Structured (per space)Not applicable
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Underground (per space)Not applicable
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Operations & ExpensesInputSourceNotes/Comments
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Vacancy (percentage)5%Developer interviews
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Collection Loss (percentage)0%Included in vacancy
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Operating Expense (% of EGI)
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 Operating Expenses (per unit) $ 10,000.00
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Cost of Sale (percentage)5%Brokerage fees for condos
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FinancialInputSourceNotes/Comments
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Lending Rate (Percentage)8.25%Developer interviews
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Lending Term (Years)25 yearsDeveloper interviewsAmortization period
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Debt Equity Ratio1.85(70/30 ratio); lower for rental projects per 1.25 debt service coverage ratio
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Cap Rate5%Costar, developer interviews
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Return Expectations
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Internal Rate of Return (IRR)19%Developer interviews
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Return on Cost (ROC)7%Developer interviews
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Cash on Cash (CoC)Not applicable
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