NAICS 531110 Quarterly Industry Report
Lessors of Residential Buildingsv and Dwellings
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 531110Sector: Real Estate and Rental and Leasing (53)Updated: Q1 2026
About This Report
This industry profile for Lessors of Residential Buildings and Dwellings (NAICS 531110) draws on data from the U.S. Census Bureau[5], Bureau of Labor Statistics[6], and SBA size standards[8]. Published by Fair Market Value and updated quarterly, it provides property investors, rental operators, and lenders with classification guidance and market context. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the lessors of residential buildingsv and dwellings industry.
NAICS Sector
53
Real Estate and Rental and Leasing
Industry Definition & Overview
Lessors of Residential Buildings and Dwellings (NAICS 531110) encompasses establishments primarily engaged in renting or leasing residential buildings and dwellings, including apartment complexes, single-family homes, and multi-family rental properties. This classification includes owner-lessors and firms that rent real estate properties and then sublet them to tenants. Per Census Bureau data[5], the industry includes approximately 54,300 firms employing 369,300 workers and generating over $153 billion in annual revenue.
The average residential lessor operates out of a single location, employs about 7 workers, and generates $2.8 million in annual revenue. Market concentration remains relatively low, with the top 50 companies accounting for roughly 30% of industry revenue. This fragmentation creates a competitive market where small property owners compete alongside major REITs and institutional investors. California has the largest concentration of rental units, followed by Texas, Florida, and New York (Bureau of Labor Statistics[6]).
Demographic shifts, housing affordability challenges, and evolving consumer preferences continue to drive rental demand. Research from the National Apartment Association[7] projects the U.S. needs to build 4.3 million new apartments by 2035 to meet housing demand. National rental vacancy rates sit near 6.8%, with occupancy averaging 93.2%. Geographic variation is stark; states like Rhode Island maintain tighter occupancy near 97%, while parts of the Southeast see vacancy rates above 10%. Rental pricing remains about 25% higher than pre-pandemic 2019 levels.
What's Included in This Industry
- Single-family home rental operations
- Apartment complex and multifamily building ownership and leasing
- Townhome and duplex rental operations
- Residential property subleasing arrangements
- Mobile home community rental management
- Condominium rental leasing for residential use
- Mixed-use buildings with residential rental components
- Owner-occupied properties operated as rental businesses
- Senior housing and assisted living facility leasing
- Student housing rental operations
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Real Estate and Rental and Leasing | 53 |
| Subsector | Real Estate | 531 |
| Industry Group | Lessors of Real Estate | 5311 |
| NAICS Industry | Lessors of Residential Buildings and Dwellings | 53111 |
| National Industry | Lessors of Residential Buildings and Dwellings | 531110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 531120 | Lessors of Nonresidential Buildings (except Miniwarehouses) | Lessors of Nonresidential Buildings lease office, retail, and industrial properties to commercial tenants, using similar property management practices but serving different tenant types than residential lessors |
| 531130 | Lessors of Miniwarehouses and Self-Storage Units | Lessors of Miniwarehouses and Self-Storage Units operate specialized storage rental facilities, a distinct real estate segment from residential dwelling leasing |
| 531190 | Lessors of Other Real Estate Property | Lessors of Other Real Estate Property lease manufactured home sites, vacant land, and agricultural property, covering non-building real estate excluded from 531110 |
| 531311 | Residential Property Managers | Residential Property Managers operate and manage residential properties for others on a fee or contract basis, providing services to the owner-lessors classified under 531110 |
| 531312 | Nonresidential Property Managers | Nonresidential Property Managers provide commercial property management services, a parallel management function to residential property management under different building types |
| 531320 | Offices of Real Estate Appraisers | Offices of Real Estate Appraisers determine property values for rental properties, providing valuation services critical to property acquisition and financing decisions |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | New York | 15.3% | 11,437 |
| 2 | California | 13.3% | 9,949 |
| 3 | Texas | 8.0% | 5,969 |
| 4 | Florida | 6.5% | 4,883 |
| 5 | Ohio | 3.1% | 2,345 |
| 6 | New Jersey | 3.0% | 2,243 |
| 7 | Washington | 2.9% | 2,181 |
| 8 | North Carolina | 2.8% | 2,108 |
| 9 | Pennsylvania | 2.8% | 2,084 |
| 10 | Georgia | 2.6% | 1,925 |
% Of Establishments
0%
15%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$1.6M
Total Loan Volume
$65K
Average Loan Size
10 yrs
Average Loan Term
11.78%
Average Interest Rate
120
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA establishes a size standard of $34.0 million in gross receipts for NAICS 531110 (SBA Size Standards[8]). An alternative standard of $47.0 million applies to firms primarily leasing building space to the Federal Government. Firms below these thresholds may qualify for SBA programs including 7(a) loans, 504 loans, and small business procurement set-asides. The size standard enables the vast majority of residential lessors to access targeted SBA support programs.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | The Huntington National Bank | 8 | $960K | $120K |
| 2 | TD Bank, National Association | 8 | $400K | $50K |
| 3 | Manufacturers and Traders Trust Company | 8 | $200K | $25K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses are classified under NAICS 531110?
NAICS 531110 includes establishments that own and lease residential buildings and dwellings to tenants. This covers apartment complex operators, single-family home rental companies, townhome and duplex lessors, condominium rental operators, and mobile home community managers. Both individual property owners and large REITs fall within this classification when their primary activity is residential leasing.
How is the residential leasing industry structured?
The industry is highly fragmented, with about 54,300 firms and no dominant market leader. Per Census Bureau data[5], the top 50 companies account for roughly 30% of revenue. The average firm employs 7 workers and generates $2.8 million in annual revenue. Small operators compete alongside institutional investors and publicly traded apartment REITs in local markets.
What is the SBA size standard for NAICS 531110?
The SBA size standard is $34.0 million in gross receipts, with an alternative of $47.0 million for firms primarily leasing to the Federal Government (SBA Size Standards[8]). Most residential lessors fall well below this threshold and qualify as small businesses for federal contracting and SBA loan programs.
What NAICS codes are related to residential building lessors?
Closely related codes include 531120 (Nonresidential Building Lessors), 531130 (Self-Storage Lessors), 531190 (Other Real Estate Lessors), 531311 (Residential Property Managers), and 531320 (Real Estate Appraisers). Each represents a different segment of the real estate ownership, management, and services ecosystem.
Which industries work most closely with residential building lessors?
Residential builders (236117, 236118) provide new inventory and renovation services. Commercial banks (522110) provide mortgage and construction financing. Property and casualty insurers (524126) provide essential coverage. CPA firms (541211) handle tax planning for rental income. Janitorial services (561720) maintain multi-unit properties. Property managers (531311) operate buildings on behalf of absent owners.
What activities are included in NAICS 531110?
Activities include owning and leasing apartment buildings, renting single-family homes, operating townhome and duplex rentals, managing mobile home communities, subleasing residential properties, and leasing condominiums for residential use. The classification covers both direct ownership leasing and subleasing arrangements.
Can you get an SBA loan for this type of business?
SBA loans are available for qualifying residential lessors that meet the $34.0 million size standard. SBA 7(a) and 504 loan programs[9] can fund property acquisition, renovation, and working capital needs. However, SBA loans for pure real estate investment (holding property for appreciation) face restrictions; loans must support active business operations.
Which states have the highest concentration of residential rental properties?
California has the largest concentration of rental units, followed by Texas, Florida, and New York. Per Bureau of Labor Statistics data[6], the District of Columbia has the highest household rentership rate, followed by New York. Southern states like Texas and Florida have seen strong rental demand growth driven by interstate migration exceeding 396,000 new residents annually.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]Census Bureau data census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]National Apartment Association naahq.org
- [8]SBA size standards sba.gov
- [9]SBA 7(a) and 504 loan programs sba.gov
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