Houston · Multifamily

Multifamily cost segregation in Houston.

Garden-style and suburban apartment communities across greater Houston — from the Energy Corridor and Katy to Sugar Land, The Woodlands and Pearland. Engagements include an on-site observation, and most studies are delivered within about two weeks.

Prefer to talk it through? Call (213) 444-2776.
Exploded engineering plate of a typical garden apartment building separated into layers: roof, structural frame, unit finishes and fixtures, walls, floor slab and foundation, and the surface parking, pools and site.
Illustrative — a typical apartment building, exploded into the component layers a study examines.
IRS ATG aligned
Methodology mirrors Pub. 5653
Fixed written fee
From $1,995 — quoted up front
On-site observation
Our technicians visit in ~1 week
27.5-year class
Residential rental, not 39-year
A representative $10M Houston garden apartment community
$1,463,683
moved into shorter recovery periods — 17.8% of depreciable basis in this illustrative model.
5-year
$948,292
15-year
$515,391
27.5-year
$6,736,317
$10,000,000 · 100 units · garden-style · built 1998 · surface-parked · residential rental · land at 18%. Illustrative engine output (v3.23.0), not a completed study. Estimated total first-year depreciation $1,657,607 including 100% bonus on eligible shorter-life property.
Largest modeled accelerated components
Appliances (in-unit) 5yr · $321,692
Per-unit appliance package 5yr · $188,787
Concrete paving & walks 15yr · $103,910
Per-unit washer / dryer 5yr · $96,479
Wood deck / patio 15yr · $85,357
Landscaping & irrigation 15yr · $78,724
Selected components; smaller shorter-life items make up the remainder.
Local knowledge

Why so much of a Houston apartment is the site

Houston apartment owners are often surprised how much of a garden community's value is outside the buildings. Because Houston has no zoning and cheap land, its multifamily stock is overwhelmingly low-rise and surface-parked, so surface parking, drives, carports, pools and amenity decks, and extensive landscaping — components generally treated as 15-year land improvements — make up a larger share than in dense coastal metros. Post-Harvey, under NOAA Atlas 14 and local rules, these sites also carry substantial on-site detention and drainage. A desk study estimates that outdoor bucket from plans; measuring it is where the accuracy is.

Why it matters for your study

Because we visit the property, our engineering review evaluates unit finishes and common areas and — across the whole parcel — surface parking, carports, pools, landscaping and the required detention, building by building. Where flood-mitigation or drainage work has been done, we document what was replaced and when, so your CPA can weigh a partial asset disposition election and the correct year.

Why apartment communities reward an on-site study

A garden apartment community repeats itself and spreads out. A 100-unit property has 100 sets of flooring, fixtures and appliances, and a site full of parking, carports, pools, landscaping and detention — and the mix is rarely uniform, because units turn and site work is added at different times.

A closing file records a building count and a unit count. It does not record which units were turned, what went into them, or how much site improvement is actually on the ground. Walking the parcel is how that becomes a documented record instead of an assumption. Where records already support the components at issue, our remote model applies and costs less.

What we document at the property

Unit finishes & fixtures

Flooring, window treatments, appliances, removable kitchen and bath fixtures, closet shelving, and per-unit lighting. On a 100-unit community these repeat many times, so unit-level documentation matters here.

Surface parking & carports

Surface parking, drive aisles, sidewalks, curbing, carports and covered parking, dumpster enclosures, fencing and site lighting — the large 15-year bucket a desk study estimates from plans, and easy to miss remotely.

Amenities & clubhouse

Pools and pool equipment, amenity decks, clubhouse and leasing-office build-out, fitness fixtures, grills and cabanas, and extensive landscaping and irrigation.

Detention & drainage

On-site detention ponds, inlets, storm-sewer tie-ins and drainage structures the site is required to carry — and, where flood-mitigation work has occurred, the record of what was replaced and when for your CPA.

One community, three kinds of answer

Illustrative. Actual classifications are made per property, on the facts.

Commonly accelerates

Carpet, vinyl and laminate flooring, appliances, removable kitchen and bath fixtures, closet shelving, ceiling fans, and site improvements such as surface parking, carports, walkways, pools, exterior lighting, landscaping, irrigation and detention.

Depends on the facts

Decorative and special-purpose lighting, cabinetry and countertops, amenity build-outs, flood-mitigation and drainage improvements and what they replaced, and improvements added after acquisition. Cabinetry in particular is fact-sensitive — ordinary permanent casework is generally building property.

Generally structural

Shell, framing, foundation, roofing, exterior walls, windows, general plumbing and electrical rough-in, and building-wide HVAC and fire protection. A five-plus-unit apartment community is residential rental property depreciated over 27.5 years.

How the engagement works

01
Scoping
Basis, placed-in-service date, square footage, improvement history, records.
02
Fixed quote
A written fee up front — never a percentage of your deduction.
03
Observation
A field technician documents site improvements, equipment, and quantities.
04
Analysis
Reconciled to basis, modeled on industry-standard cost data, classified into MACRS lives.
05
Delivery
Quality-control and reviewer checks, then a CPA-ready component-level report.

Houston stormwater detention and flood mitigation

If your community was built or improved under Houston's post-Harvey stormwater rules — or you have done drainage, regrading, elevation or flood-repair work — it is worth reading this. After Hurricane Harvey, the region adopted NOAA Atlas 14 rainfall data and stepped up on-site detention requirements, so these sites carry real detention and drainage infrastructure. A mitigation improvement is a capital event, and capital events are where cost segregation and depreciation timing interact. Each row is the question it raises:

Detention and drainage infrastructure on the site
How much of the site is separately identifiable 15-year land improvement rather than building?
Flood-mitigation, regrading or elevation work
Is this a capital improvement placed in service in its own year, with its own component detail?
Site elements removed or replaced in the work
Does a partial asset disposition election apply to what came out?
Removal year vs. placed-in-service year
The removal and the new improvement can fall in different years — which matters for timing.

A summary of local requirements and a general depreciation framing, not legal or tax advice; stormwater and floodplain compliance is a question for your engineer and the authorities, and whether a partial asset disposition election is advisable is your CPA's determination. Sources: Harris County Flood Control District — Atlas 14, IRS partial-disposition practice unit.

Houston multifamily submarkets we serve

West & Inner Loop
Energy Corridor · Westchase · Galleria / Uptown · Memorial · Medical Center
Suburban
Katy · The Woodlands · Sugar Land · Pearland · Cypress · Spring · Clear Lake
Counties
Harris · Fort Bend · Montgomery · Brazoria · Galveston

Related: multifamily cost segregation, the sample multifamily report, our Houston warehouse coverage, and the Houston commercial hub.

Frequently asked

Do you visit apartment communities in Houston?

Yes. Houston engagements include an on-site property observation by one of our technicians, typically within about a week. On a garden-style community the visit is how the site — parking, carports, pools, landscaping and detention — gets measured across the whole parcel rather than estimated from plans.

How long does a Houston multifamily study take?

Most studies are delivered within about two weeks after the property visit, varying with unit count, renovation history and record availability.

How much does a Houston apartment study cost?

Engineered multifamily studies start at $1,995 and step with the improvement basis. You get a fixed written fee before any work begins, not a percentage of your deduction — or call us at (213) 444-2776.

We did drainage or flood-mitigation work. Does that matter for the study?

It can matter a great deal. Drainage, regrading, elevation or detention work is a capital event placed in service in its own year, and the components it replaced may support a partial asset disposition election. We document what was replaced and the dates on site; whether the election is advisable is your CPA's determination.

Want your own numbers instead? Get a free 1-page preliminary depreciation estimate for your property — we do the work, you get the PDF.
See my estimated Year-1 savings →

Ready to scope your building?

Tell us the address, basis, and placed-in-service date. We generally return a written scope and quote within one business day — or call the office at (213) 444-2776.

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