How It Works

A quarter of the cost. Six times the speed.

Section 1 — The Model

Master leasing, explained

Master leasing is Functional Housing's solution to rapidly increase affordable housing stock at a fraction of the cost and time of traditional development.

In a master lease, Functional Housing signs a reduced-rate, multi-year umbrella lease on an entire building, then subleases units to residents at deeply affordable rates. This works because owners and developers want guaranteed income without vacancy risk — our umbrella lease guarantees monthly rent regardless of occupancy, while relieving the pressure of day-to-day building management.

What is a master lease diagram

Section 2 — Why It Builds Wealth

Affordable housing shouldn't trap people in poverty.

Most affordable-rent programs abroad only screen tenant income at lease signing — no yearly re-certification. That lets tenants see a multi-year future where savings can fund a business or a first home.

Our master lease can produce rents as low as $650–850 a month with multi-year guarantees, letting residents stay anchored in their community and build toward local investment over time.

$650–850

Monthly rent range our master lease can produce, with multi-year guarantees — versus market rate in the same units.