How Investors Are Using Fixed Notes to Hedge Against Vacancy Risk

BiggerPockets Blog·Published Nov 3, 2025·Pricing & Profitability
Summary

This article discusses how investors are using asset-backed fixed income, such as real estate notes, to hedge against vacancy risk. STR hosts can diversify their investments with real estate notes to potentially generate more stable income and reduce their reliance on unpredictable rental income from their properties.

Key takeaway
Insight

Vacancy rates for rental housing stood at 7% for the second quarter of 2025.

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