What is Single Room Occupancy (SRO) Housing?

Single Room Occupancy (SRO) Housing and the HUD 221(d)(4) Loan Program

Housing consisting of single room dwelling units that are the occupants’ primary residences. HUD requires new construction, conversion of non-residential space and reconstruction SRO units to have either food preparation areas or bathrooms (or both). If the property is an acquisition or rehabilitation, neither food preparation nor sanitary facilities are required in each unit. However, the building must have shared sanitary facilities. While in some areas, SRO buildings are protected by city or state regulations, in general, SRO housing is not particularly profitable, and many such developments face a great deal of pressure to be converted into more profitable units.


To learn more about HUD multifamily construction loans like the HUD 221(d)(4) loan, fill out the form below and a HUD lending expert will get in touch.