Cost segregation for student housing
Student housing is priced and leased by the bed, and it is furnished that way too. Every bedroom ships with a bed, desk, chair and dresser, common areas are loaded with lounge and fitness FF&E, and the low-voltage backbone — data, access control, cameras — is heavier than in any conventional apartment. That furniture-and-technology layer is where the 5-year basis lives.
| Modeled reclass range | 15–32% |
|---|---|
| Typical study fee (Cost Seg Smart) | See pricing guide |
| Recovery periods captured | 5-, 7- and 15-year vs the 39-year shell |
| Delivery | Engineering-based; virtual or on-site depending on the provider |
1What reclassifies in a student housing
Cost segregation moves qualifying components out of the 39-year building shell into shorter recovery periods. In a student housing the recurring short-life components are:
| Component | Recovery period | Authority carried (with caveat) |
|---|---|---|
| Per-bed furniture (beds, desks, dressers, seating) | 5-year | Personal property (Asset Class 57.0) — freestanding furnishings supplied per bed; loose and removable, not part of the structure. |
| Common-area & amenity FF&E (study lounges, game rooms, fitness) | 5-year | Personal property when furniture and equipment are removable; affixed millwork and built-ins generally follow the building. |
| Laundry equipment & appliance packages | 5-year | Personal property that is unit- or facility-serving; connections integral to the building's plumbing generally stay structural. |
| Low-voltage data, Wi-Fi backbone, access control & security | 5-year | May qualify as personal property where the cabling and devices serve tenant equipment rather than operate the building; systems integral to life-safety or building operation stay structural. |
| Removable finishes — carpet, decorative & accent lighting | 5-year | Personal property when tacked/glued-down or decorative; permanent flooring and general illumination remain part of the shell. |
| Site work — parking, paving & landscaping | 15-year | Land improvements (Asset Class 00.3) serving the site; grading tied to raw land value is non-depreciable. |
| Bike storage, outdoor amenity decks & signage | 15-year | Land improvements when they improve the site and are not integral to a building. |
2Typical results and what drives the spread
Across standardized student housing configurations, the engine models an accelerated share of roughly 15–32%. Bed count, furnishing level and the depth of the technology and amenity build drive the spread. These are modeled ranges, not a promise for any specific building — see by the numbers.
3By the numbers (original data)
4What a study costs for this type
Study fees track building size, documentation quality and whether an on-site inspection is performed. See the pricing guide for current market bands; competitor fees are sourced there, not quoted in prose here.
5Provider comparison — the Top 5 for this asset class
Every provider below is scored on the same fixed rubric, weighting relevant student housing evidence most heavily. Facts are drawn from each provider's public materials and dated.
| Provider | Score* | Relevant student housing evidence | Profile | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| RE Cost Seg Engineering-first · National (Houston, TX) Best published pricing Best for virtual delivery Most transparent turnaround | 7.9How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Cost Seg Smart site owner Engineering-first Best published pricing Best for virtual delivery | 7.8How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Baker Tilly National accounting/advisory · National (Chicago, IL) Best for national on-site coverage Most transparent turnaround | 7.6How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Source Advisors Engineering-first · National (Fort Worth, TX) Best for national on-site coverage | 7.3How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → | ||||||||||||||||||||||||||||||||
| Cherry Bekaert Engineering-first · National (Richmond, VA; #1 Southeast) Best for national on-site coverage | 7.2How this score is built (sub-score ÷ 5 × weight):
| Generic coverage only source · as of Jul 2026 | Profile → |
Top 5 of 22 firms scored for student housing. See every firm's full profile and per-type standing in the provider directory.
*Score is this site's published rubric output (0–10) for student housing, weighting relevant property-type evidence most heavily (see how we compare) — click any score for its build-up. It is not a customer rating and no reviews are used. Cost Seg Smart is the site owner and is scored on the same rubric.
6Is it worth it — break-even
Because per-bed FF&E and the technology backbone stack on top of normal apartment finishes, a modeled 15–32% reclassification of depreciable basis is typical for student housing, and the benefit generally clears a study fee at a modest basis — accelerated further where bonus depreciation applies to the large 5-year pool.
7Frequently asked questions
Why does student housing reclassify more than a standard apartment?
Because it is furnished by the bed and wired for heavy tenant technology. A conventional apartment is leased unfurnished; student housing supplies beds, desks and seating in every room and layers in data, Wi-Fi and security. Both are 5-year personal property, so the reclassifiable pool is larger.
Is the furniture really 5-year property?
Freestanding, removable furnishings are generally 5-year personal property. The key facts are that the items are loose and not a permanent part of the structure. Built-in millwork and casework that finish the building generally remain in the 27.5-year shell.
How is the low-voltage and security system treated?
It depends on function. Cabling and devices that serve tenant equipment — data drops, Wi-Fi access points, cameras and access control — may qualify as personal property, while wiring that is integral to life-safety or to operating the building stays structural. An engineering review separates the two.
Is the building still on a 27.5-year life?
Yes. Student housing that provides dwelling units is residential rental property, so the shell recovers over 27.5 years. The FF&E, technology and site work move into 5- and 15-year classes; the structure itself stays at 27.5.
Does the leasing calendar affect the study?
No. Cost segregation classifies assets by their nature and use, not by the lease term. Whether the property leases by the bed on an academic year or by the unit annually does not change how furniture, technology and site work are classified.
Sources and authority consulted
- Rev. Proc. 87-56 (MACRS asset classes)
- IRS Cost Segregation Audit Techniques Guide (Pub 5653)
- Cost Seg Smart per-vertical component engine (modeled ranges + component authorities).
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