Company: BHM
Filing Date: 2025-04-09
Form Type: 424B3
Source: 0001104659-25-033384
Chunk: 40

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-04-09
Form: 424B3
Chunk 40
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 ability to enforce residents’ contractual rental obligations and/or to increase rents.
See “—Our business, results of operations, financial condition, and cash flows may be adversely affected by pandemics and
outbreaks of infectious disease, which may include COVID-19.”

Damage to our properties may
delay re-leasing after eviction, necessitate expensive repairs, or impair the rental income or value of the property resulting in a lower
than expected rate of return. Increases in unemployment levels and other adverse changes in economic conditions in our markets could result
in substantial resident defaults. In the event of a resident default or bankruptcy, we may experience delays in enforcing our rights as
landlord at that property and will incur costs in protecting our investment and re-leasing the property.

Our leases are relatively short-term, exposing us to the risk that we may have to re-lease our properties frequently, which we may be unable to do on attractive terms, on a timely basis, or at all.

Substantially all of our new
leases have a duration of one to two years. As such leases permit the residents to leave at the end of the lease term, we anticipate our
rental revenues may be affected by declines in market rental rates more quickly than if our leases were for longer terms. Short-term leases
may result in high turnover, which involves costs such as restoring the properties, marketing costs, and lower occupancy levels. Our resident
turnover rate and related cost estimates may be less accurate than if we had more operating data upon which to base such estimates. If
the rental rates for our properties decrease or our residents do not renew their leases, our operating results and ability to make distributions
to our stockholders could be adversely affected. Alternatively, to the extent that a lease term exceeds one year, we may lose the opportunity
to raise rents in an appreciating market and be locked into a lower rent until such lease expires.

Climate change may adversely affect our business.

To the extent that significant
changes in the climate occur in areas where our communities are located, we may experience extreme weather and/or changes in precipitation
and temperature, all of which may result in physical damage to, or a decrease in demand for, properties located in these areas or affected
by these conditions. Should the impact of climate change be material in nature, including significant property damage to or destruction
of our properties, or occur for lengthy periods of time, our financial condition or results of operations may be adversely affected. In
addition, changes in federal, state