The Neighborhood Rating feature is a vital tool for evaluating the quality and investment potential of multifamily property locations. This article outlines how the feature works, what metrics are included, and how users can interpret the data for informed decision-making.

The Neighborhood Rating provides a data-driven letter grade (A+ to D) that reflects the overall quality and investment appeal of a neighborhood when compared to other neighborhoods in the same region. These ratings help users quickly assess how a given location stacks up in terms of housing, amenities, and demographic factors.

The percentile is determined within a specific Region, defined as a Core-Based Statistical Area (CBSA) or county when not located in a CBSA, ensuring neighborhood comparisons are made among similar markets​.

Neighborhoods in WDSuite are not static administrative zones like ZIP codes or Census tracts. Instead, they are created using clusters of adjacent Census block groups that exhibit similar demographic, housing, and amenity characteristics. There are over 100,400 such neighborhoods across the U.S.

Neighborhoods are scored in three primary categories:

The Housing national percentile represents how a neighborhood compares to others across the U.S. in terms of housing-related metrics. It is calculated by averaging the national percentiles of the following individual features:

The Amenities national percentile is represents how a neighborhood compares to others across the U.S. by averaging the national percentiles for the density of various demand drivers:

The Demographics national percentile averages the national percentiles for the following features:

A percentile rank relative to all U.S. neighborhoods is calculated for each category and then averaged to determine the Overall National Percentile​.

Neighborhoods receive a letter grade based on their overall percentile rank within their Region. For example:

In addition to national percentiles, WDSuite displays how each metric compares to other neighborhoods in the same metro region, known as "Rank vs Metro." This provides a more localized performance benchmark.

The approach mirrors the Neighborhood Rating methodology—each metric’s national percentile is evaluated within the region to assign a qualitative label:

This layer of insight helps users assess whether a given metric is a regional standout, average, or below the local norm.

Neighborhoods are also classified by Type, based on population density, rent levels, and home values. The classification is determined by a dynamic clustering algorithm, not fixed thresholds:

WDSuite's Neighborhood Rating system allows investors, analysts, and lenders to:

It is a robust, transparent, and scalable way to incorporate location intelligence into multifamily investment strategy.