What is a realistic SDA yield?

Realistic SDA yields depend on location, design category, occupancy, and compliance costs. Be cautious of headline figures that assume full occupancy from day one — always verify with actual tenanting history.

Why are some SDA yield projections misleading?

Many projections assume immediate full occupancy, maximum funding rates, and minimal costs. In reality, vacancy periods, compliance maintenance, and property management costs all affect real returns.

How does vacancy affect SDA returns?

If an SDA property is not tenanted with an eligible participant, SDA funding is not paid. Vacancy is the single biggest risk factor for SDA investment returns.