Company: BHM
Filing Date: 2025-11-18
Form Type: S-11/A
Source: 0001104659-25-113674
Chunk: 35

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-11-18
Form: S-11/A
Chunk 35
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| · | changes in, or increased costs of compliance with, laws and/or governmental regulations, including those governing usage, zoning, the environment and taxes; and |

| · | rent control or stabilization laws, or other laws regulating rental housing, which could prevent us from raising rents to offset increases in operating costs. |

Moreover, other factors may
adversely affect our results of operations, including potential liability under environmental and other laws and other unforeseen events,
many of which are discussed elsewhere in the following risk factors. Any or all of these factors could materially adversely affect our
results of operations through decreased revenues or increased costs.

Many of our costs, such as operating expenses and general and administrative expenses, interest expense and real estate acquisition and construction costs, could be adversely impacted by periods of heightened inflation.

Inflation in the United States
remained elevated throughout 2023 and 2024 and may continue to remain high in the future. While inflation has shown signs of moderating,
it remains uncertain whether substantial inflation in the United States will be sustained over an extended period of time or have a significant
effect on the United States or other economies. Rising inflation could have an adverse impact on our operating expenses as well as our
general and administrative expenses. For example, it is possible that the impact of the rate of inflation may not be adequately offset
by annual rent escalations or the resetting of rents from our renewal and re-leasing activities, which may adversely affect our business,
financial condition, results of operations, and cash flows. Compensation costs and professional service fees are also subject to the impact
of inflation and are expected to increase proportionately with increasing market prices for such services. Consequently, inflation may
increase our general and administrative expenses over time and may adversely impact our results of operations and cash flows.

While the Federal Reserve
reduced interest rates by an aggregate of 100-basis points during 2024 and by another 25-basis points in September 2025, there can be no assurances that interest rates will not rise again. Our exposure to increases in
interest rates in the short term is limited to our variable-rate borrowings. As of September 30, 2025, we had interest rate caps
and swaps which effectively limit our exposure to interest rate risk by providing a ceiling on the underlying floating interest rate
for $100.8 million of our floating rate debt. However, the effect of inflation on interest rates could increase our financing costs over
time