Company: BHM
Filing Date: 2025-08-13
Form Type: 424B3
Source: 0001104659-25-077615
Chunk: 44

Company: Bluerock Homes Trust, Inc.
Filing Date: 2025-08-13
Form: 424B3
Chunk 44
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 either directly or indirectly. These inputs may include: (a) quoted prices
for similar assets in active markets; (b) quoted prices for identical or similar assets in markets that are not active; (c) inputs
other than quoted prices that are observable for the asset; or (d) inputs derived principally from or corroborated by observable
market data by correlation or other means.

Level 3 -Inputs that are unobservable
and significant to the entire fair value measurement.

Private investment companies measured using net
asset value as the practical expedient are not categorized within the fair value hierarchy.

The availability of valuation techniques and observable
inputs can vary from investment to investment and are affected by a wide variety of factors, including the type of investment, whether
the investment is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the
transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, determining
fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or
lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised
by the Fund in determining fair value is greatest for investments categorized in Level 3. In some circumstances, the inputs used to measure
fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is
generally categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value
measurement.

Fair Value – Valuation Techniques and Inputs

The Fund establishes valuation processes and procedures
to ensure that the valuation methodologies for investments that are categorized within Level 3 of the fair value hierarchy are fair, consistent,
and verifiable.

The General Partner oversees the entire valuation
process of the Fund’s Level 3 investments and is responsible for developing the Fund’s written valuation processes and procedures,
conducting periodic reviews of the valuation policies, and evaluating the overall fairness and consistent application of the valuation
policies. The valuations of the Fund’s Level 3 investments are evaluated quarterly if information or events leads the General Partner
to adjust the valuation on an interim basis. Valuations determined by the General Partner are required to be supported by market data,
internal cash flow models, or other methods the General Partner deems to be appropriate.

These assessments typically incorporate an income
approach reflecting a discounted cash flow analysis.