If more than 50% of units are home to renters, your property value is affected because FHA wonâ€™t finance loans to buyers for your condo or refinance your existing loan. Plus, would-be buyers typically seek out condos in buildings that are majority owner-occupied based on the perception that owners are quieter and more stable than renters. Since renters are not owner-occupants, they will not have a vested interest in maintaining the value of the project. More importantly, a lender may consider all units in a condominium project that allows too many rental units to be investment property. For example, if the project's rules allow 30% or more units to be rented (even if they arenâ€™t actually rented) lenders could deny potential buyers a home ownerâ€™s loan and will instead offer an investment property loan that entails a lower loan-to-value ratio and a higher interest rate. If a rental restriction is not in place, or if there is room for the HOA to adjust the level of rentals, your ability to sell the unit later could be impaired.