President Trump has set a new threshold in a proposed plan that could impact single-family rentals.

I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

According to a report from the Wall Street Journal, the White House has settled on a definition of what it calls a large investor, and that number is 100 homes. Under the proposed legislation, investors who own more than 100 or more single-family homes could be barred from buying additional properties in the future. That number is much lower than

many people in the industry expected. Most assumed that cut off would be around 1,000 homes.

That's usually the line between local operators and large institutional firms. So what would this

actually mean? Investors who own between 100 and 1,000 homes are known as mid-market

operators. There are about 2,400 of them across the country. Together they own around 354,000

single-family rental homes. And when you combine them with institutional investors who own more

than 1,000 homes, they account for roughly

1% of the total single-family housing stock in the U.S.

Even in the largest metro areas, ownership by these 100-plus investors rarely reaches

4% of housing stock.

In most states, it's below one.

So nationally, this group controls a relatively small portion of the market.

Now let's look at what they're buying. Most of these mid-market operators are not purchasing

brand new homes in prime neighborhoods. They're typically buying workforce housing. That means

smaller homes, older homes, and often homes that need repair. On average, the properties they buy are about 25%

smaller than the typical homes sold in their markets. They're also usually more than 10 years

older than the market average. And here's something important. They're paying about 40% less

than the median home price in those cities. Why? Because these homes need renovation.

They're in less expensive neighborhoods and after repairs they're rented out at more affordable

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