Arrived Review: Rental-Home Shares, Real Yields and the Fee Math

This section establishes what you are buying from, who owns it, and which regulator sees its books, because on Arrived one company sources the house, prices the shares, manages the asset, marks it each quarter, and decides when to sell it.

The entities

Arrived is a Seattle company whose parent, Arrived Holdings, Inc., operates the website and app and manages a family of Delaware series limited liability companies that actually own the houses. The first issuer, Arrived Homes, LLC, filed its Form 1-A with the SEC on September 18, 2020, and was qualified on February 17, 2021 (File No. 024-11325). As each issuer filled up under Regulation A’s annual cap, Arrived created successors: Arrived Homes II, LLC (formed February 2022), Arrived Homes 3, LLC and Arrived Homes 4, LLC (2023), and Arrived Homes 5, LLC (formed July 2024, Form 1-A filed October 18, 2024, qualified November 18, 2024, File No. 024-12523). Vacation rentals sit in Arrived STR, LLC and Arrived STR 2, LLC. The pooled products are separate again: the Single Family Residential Fund (Arrived SFR Genesis Fund, LLC, launched November 29, 2023); the Arrived Debt Fund, LLC (2024), sold as the Private Credit Fund and renamed the Real Estate Income Fund by mid-2026; and, since May 2025, a Seattle City Fund. Each house is a “series” of one of the issuers, and each series elects to be taxed as a REIT.

In one sentence: Arrived is an issuer and asset manager, not a broker, an adviser or an exchange. The offering circulars state that Dalmore Group, LLC, a FINRA-member broker-dealer, is the soliciting agent and executing broker, and that neither the manager nor any affiliate is a FINRA member. Arrived is not a registered investment adviser and does not hold your money as a custodian; your shares are recorded on the issuer’s books. The secondary market that launched publicly in November 2025 runs through an executing broker as well (see Liquidity).

The people and the money

The co-founders are Ryan Frazier (CEO), Kenny Cason (CTO) and Alejandro Chouza (COO); Frazier and Cason came from the Seattle analytics firm Simply Measured, and Chouza from Uber and Oyo (TechCrunch, May 17, 2022; company bios). The company raised a $25M Series A on May 17, 2022 led by Forerunner Ventures, with Bezos Expeditions, Core Innovation Capital, Neo, Spencer Rascoff and others returning (PR Newswire, May 17, 2022), and a $27M Series B announced November 12, 2025, led by Neo with Forerunner, Bezos Expeditions and Core participating (GeekWire, November 12, 2025). CNBC put total funding at $61.7M and named Marc Benioff and Dara Khosrowshahi among existing investors (November 13, 2025). Arrived does not publish a valuation.

Scale, as of the date on this piece

Arrived’s own figures, as republished by FinanceBuzz in February 2026, were $337M of assets under management, $383M total invested, more than 945,000 registered investors, 536 funded properties in 66 markets, and more than $71M paid out in distributions since launch. Registered investors is a sign-up count, not an account-with-money count, and the platform does not publish the latter. The 2025 Year in Review on Arrived’s blog (early 2026) reports 500-plus properties, $170M-plus of total property value, $13.5M-plus of rent revenue, $10.5M of dividends and stabilised occupancy averaging 95.89%. The gap between $337M of AUM and $170M of property value is presumably the funds plus cash; Arrived does not publish the bridge, and it is the first figure to ask the platform to reconcile.

Regulatory status in one line

Regulation A, Tier 2 issuer; audited Forms 1-K and semi-annual Forms 1-SA for each issuer; Dalmore Group as broker of record; no adviser or exchange registration; one state consent order, from Washington’s Department of Financial Institutions on May 28, 2025, for failing to notice-file the offerings at home (see Risks). Normal for the category; the disclosure lives in a dozen separate EDGAR filers, and no independent party prices the shares.

This section walks the money from your bank account to a tenant’s rent cheque and back, and marks where Arrived takes a fee at each step.

Eligibility and onboarding

Anyone 18 or over with a US bank account and a Social Security or tax ID number can invest; Regulation A Tier 2 offerings are open to the public. The circulars limit non-accredited investors to 10% of the greater of annual income or net worth per offering, self-certified. The minimum is $100, ten shares at the $10 offering price; the maximum in each circular is 9.8% of the interests offered for that series, waivable by the manager, so nobody buys a house outright through the platform.

How a house is sourced and priced

Arrived’s investment team buys the house first, usually with short-term financing from the parent, then files a supplement to the offering circular giving the property, its purchase price, its expected rent, and the total raise. The raise is larger than the purchase price: it includes the sourcing fee (3.5% of the purchase price on single-family rentals, 5% on vacation rentals), closing costs, any renovation budget, and an operating cash reserve. Some offerings also carry a mortgage, stated in the supplement as a percentage of price. The house is listed at $10 a share and investors fill it. Once the raise closes, the series owns the house and hands it to a third-party property manager in that market.

What you own

You own a membership interest in one series of a Delaware series LLC. The series owns one house (or, in the funds, a portfolio of houses or loans). The interest is a security, not a deed, and you have no say in leasing, capital expenditure or sale timing; the operating agreement gives those decisions to the manager. Each series elects REIT status for federal tax, which is why your distributions arrive on a 1099-DIV rather than a Schedule K-1 (see Tax treatment).

How rent becomes a dividend

The property manager collects rent, pays operating bills, and takes its fee: 8% of gross rent on long-term rentals, 15% to 25% on vacation rentals (Arrived fee help page, 2026). Property taxes, insurance, repairs, HOA dues and vacancy come out next. Then Arrived takes its asset management fee, 0.6% a year of the property’s purchase price, paid quarterly out of net operating rental income, in the words of the Arrived Homes 3, LLC 1-K for fiscal 2025 (filed April 30, 2026). Vacation rentals also pay a 5% “gross rents” fee to Arrived on top of the operator’s cut. What remains, after topping up reserves, is paid as a monthly dividend (Arrived’s help center, 2026; payouts were quarterly in Benzinga’s April 2022 coverage, and Arrived does not publish the date of the change). Arrived’s published dividend yield is that net number divided by the amount invested, so it already includes every fee above: when the platform says 3.6%, that is what you get before your own taxes, not before Arrived’s fees.

How the share value moves

Arrived does not mark the house for the first 12 months after the offering. From month 13 it publishes an “Arrived Valuation” every quarter: comparable sales for individual single-family rentals; for the Single Family Residential Fund a blend of comparable sales and an income approach, with the income leg using the prior 24 months of income as of Q2 2026 (Arrived help center, “How do we calculate Arrived Valuations?”; Arrived Q2 2026 Financial Performance). Arrived’s own page is candid that the valuation is an estimate before sales costs, not a sale price. Nobody outside the company signs off on it: no independent appraisal, no auditor opinion on fair value, and until the secondary market opened no market at all.

Where Arrived gets paid

Count the touches: the sourcing fee at purchase; the asset management fee every quarter for the life of the hold; the gross-rents fee on vacation rentals; the fund fees (0.25% a quarter of net assets on the residential fund; on the income fund 0.1% a month plus a 0.1% a month offering service fee and a 1.75% one-time organisational charge, per its circular); and, on the secondary market, the executing broker’s commission of up to 2.5% on each side. The one thing Arrived does not take is a share of the sale profit: there is no promote in the single-home structure, a genuine point in its favour against syndications that charge 20% of gains. The three exits are covered in Liquidity and exits.

This section lists what you can buy on September 17, 2026, with the minimum, the target and the term for each, and what has changed.

Individual single-family rentals

The original product and still the bulk of the menu: named houses, mostly in Sun Belt and Midwest metros (66 markets per FinanceBuzz, February 2026). Minimum $100, $10 a share. Target hold 5 to 7 years, sale timing at Arrived’s discretion. Arrived’s realised dividend yields on this book were 3.9% for calendar 2025 (Arrived 2025 Year in Review; 3.9%, 3.6% and 4.0% for Q1 through Q3), 3.6% in Q1 2026 and 3.5% in Q2 2026, when individual properties ranged from 1.06% to 14.4% annualised (Arrived Q1 and Q2 2026 Financial Performance), all after fees. Occupancy was 95.2% in Q1 2026.

Vacation rentals

Short-term rentals offered by Arrived STR, LLC and Arrived STR 2, LLC, bought furnished and run by third-party operators. Minimum $100. Target hold 5 to 15 years. These have been the weak book. Arrived’s own figures show average annualised dividends of 2.3% to 2.5% across 2025, 1.53% in Q1 2026, when 40 bookable properties produced a little over $392K of gross bookings, and 2.9% in Q2 2026 on $873K of bookings from the same 40 (Arrived Q1 and Q2 2026 reports). Arrived STR’s Form 1-K for fiscal 2025 shows consolidated rental income of about $1.7M, down from about $2.0M in 2024, and blames a change of property manager for some series that left units vacant (filed April 2026). The fees are higher too: 5% sourcing, 15% to 25% to the operator, and the 5% gross-rents fee.

Single Family Residential Fund

A pooled, non-traded REIT (Arrived SFR Genesis Fund, LLC) that owns dozens of houses at once, launched November 29, 2023. Minimum $100. Asset management fee 0.25% of net assets a quarter (1.0% a year) on top of property-level costs. The fund’s annualised dividend yield rose from 4.1% in January 2026 to 4.3% in March 2026 (Arrived February and Q1 2026 reports). Quarterly redemption at NAV after six months, capped at 5% of NAV a quarter and 20% a year, with a 1% fee inside three years (Arrived help center, 2026). It is the product to buy if you want diversification rather than a favourite house.

City Funds

A newer line, starting with the Seattle City Fund in May 2025: a REIT that buys rental homes across one metro. Arrived’s 2026 quarterly reports give it a 5.1% annualised dividend in its best quarter and 100% occupancy for two quarters running. Redemption follows the fund pattern (six-month hold, quarterly window) with fees that fall to zero after five years; we could not retrieve the fee schedule, so read the circular (Form 253G2, 2025) before assuming it matches the residential fund.

Private Credit Fund (Real Estate Income Fund)

The debt product, registered as Arrived Debt Fund, LLC, launched in August 2024 and renamed the Real Estate Income Fund by mid-2026. It makes short-term first-lien loans to residential real estate operators, targets 7% to 9% net, and reports 8.1% annualised since launch, with yields of 8.28% in Q2 2025, 8.6% in February 2026 and an 8.7% average in Q2 2026 (Arrived help center; Q2 2026 report; CrowdfundedWealth’s read of the fiscal 2025 1-K). Minimum $100; monthly dividends; fees of 0.1% a month asset management plus 0.1% a month offering service fee (about 2.4% a year) and a 1.75% one-time organisational fee; quarterly liquidity on the same 6-month, 1%-fee terms as the residential fund. Net assets were about $81.5M at the end of Q1 2026 and $90.9M at the end of Q2 2026, across roughly 50 active loans and more than 200 lifetime, with no defaults or principal losses to date. That is a clean record over a short life, in a category (fix-and-flip and bridge lending) where Groundfloor’s lifetime uncured default rate is 4.71% by its own count; a two-year-old book has not been through a credit cycle. The help center’s framing, 2% to 3% above short-term Treasury yields after fees, is the honest one: a floating-rate spread product whose dividend will fall as the Fed cuts.

Closed or changed

The original Arrived Homes, LLC and Arrived Homes II, LLC issuers are fully subscribed and take no new money; their houses trade only on the secondary market. The fee schedule has changed since launch: reviews from 2021 and 2022 (Money Crashers, SparkRental) describe a 1% annual asset management fee on equity raised and a sourcing fee of 4% to 6% of price, while the Arrived Homes 3 circulars from 2023 onward state 0.6% of purchase price and 3.5%. Arrived does not publish an effective date for the change; read the supplement for your series.

This section counts every dollar that leaves the investor’s return, in order, then runs $1,000 through a six-year hold to see what is left.

The fees, one by one

Sourcing fee. 3.5% of the purchase price on single-family rentals, 5% on vacation rentals, paid to Arrived Holdings at acquisition out of the offering proceeds (Arrived fee help page, 2026). Because the raise is roughly purchase price plus fees and reserves, about 3.3 cents of every dollar you invest in a standard house goes to Arrived before the tenant moves in. It is the largest single fee.

Offering and closing costs. Title, escrow, inspection, transfer taxes and any renovation are charged to the series and funded from the raise, itemised in each supplement; a typical closing runs 1% to 3% of price, and the operating reserve is another few percent held as cash. Neither is a fee to Arrived; both are dollars you invested that are not earning rent.

Property management. 8% of gross rent on long-term rentals, 15% to 25% on vacation rentals, paid to third-party managers, plus the leasing fees and maintenance mark-ups that appear in the 1-K operating expense line rather than on the fee page.

Asset management fee. 0.6% a year of the purchase price of each house, paid quarterly to the manager out of net operating rental income (Arrived Homes 3, LLC Form 1-K for fiscal 2025). The help page expresses it as 0.15% a quarter for individual rentals. On the funds it is 0.25% of net assets a quarter (residential) and 0.1% a month (income fund), charged on assets rather than purchase price.

Fund offering and organisational charges. The income fund’s circular adds a 0.1% a month offering service fee and a 1.75% one-time organisational fee amortised into NAV (Arrived Debt Fund, LLC Form 253G2, 2024, as read by CrowdfundedWealth and The Real Estate Crowdfunding Review, 2026). Neither appears on the fee help page. We did not find the equivalent lines for the residential fund; check its circular.

Gross-rents fee. 5% of gross rent on vacation rentals only, paid to Arrived, on top of the operator’s 15% to 25%.

Disposition. When the house is sold, the series pays a broker commission and closing costs. Arrived does not publish a figure; CrowdfundedWealth (2026) models 6% to 7% of sale price, which matches a standard listing. Arrived takes no promote on the gain.

Secondary market. The executing broker may receive up to 2.5% on the buy side and 2.5% on the sell side of each trade (Arrived help center, “Are there any fees associated with buying or selling shares on the Arrived Secondary Market?”, 2026). A round trip therefore costs up to 5% of the position, more than a year of dividends.

Redemption fee (funds only). 1% of NAV if you redeem between six months and three years (Arrived help center, 2026; Arrived Debt Fund circular). The Seattle City Fund page says its fees reach zero after five years, so schedules differ by fund; ask which applies to your purchase date.

Account, wire and IRA fees. None charged by Arrived for ACH funding. A self-directed IRA custodian charges its own: Arrived’s partner Rocket Dollar prices its basic tier at $360 to open plus $30 a month (2026), $720 in the first year.

The fee page’s headline, that returns are net of fees, is true and is also the point: the net is 3.5% to 3.9% because the gross has been through six hands.

Worked example: $1,000 in one house for six years

Assumptions, all from the figures above: a standard single-family rental bought in 2026 with no mortgage (leverage varies by offering and is stated in each supplement; The Centennial, the sale Arrived has documented in full, carried 66.7%); a sourcing fee of 3.5% of price; closing costs and reserve of 3% of the raise, recovered at sale; a net dividend yield of 3.7% a year on invested capital, the average of Arrived’s last three published readings (3.9% for 2025, 3.6% for Q1 2026, 3.5% for Q2 2026), held flat; appreciation of 3% a year, roughly the long-run national average and our assumption, not Arrived’s; sale costs of 6% at the end of year six.

1. You invest $1,000. Closing and reserve: $30. Sourcing fee, 3.5% of price: $33 to Arrived. Property at cost: $937.
2. Dividends: 3.7% of $1,000 is $37 a year. The asset management fee (0.6% of purchase price, about $5.60 a year) and the property manager’s 8% of rent are already inside that $37. Six years: $222, taken as cash, not reinvested.
3. Appreciation: $937 at 3% a year for six years is $937 × 1.194 = $1,119.
4. Sale: 6% costs on $1,119 is $67. Net sale proceeds $1,052, plus the $30 reserve returned, is $1,082.
5. Total back: $1,082 + $222 = $1,304 on $1,000, a 30.4% total return, or about 4.5% a year.

Now the same $1,000 in a savings account at 4.21% APY, the best rate CNBC Select and NerdWallet listed in September 2026 (Fortune’s September 11 list reached 4.50% with conditions), compounding for six years: $1,000 × 1.0421^6 = $1,281. FDIC insured, withdrawable tomorrow, and the rate will move with the Fed. The house wins by $23 over six years, and only because of the appreciation assumption. Change it and the answer changes:

At zero appreciation the house returns $1,133, about 2.1% a year, and you have taken on tenant, roof and platform risk to earn less than a Treasury bill. At 5% a year it returns $1,433, or 6.2% a year. The case for an Arrived house is therefore a bet that the specific metro appreciates faster than 3% a year and that Arrived sells into that strength. A bet, not an income stream.

Tax tilts it slightly back toward Arrived: part of the REIT dividend is usually return of capital (untaxed until sale) and the rest gets the 20% Section 199A deduction, while savings interest is fully taxable. For a 24% bracket investor that is worth perhaps $15 to $25 over six years by our arithmetic. It does not change the conclusion.

This section sets Arrived’s marketing numbers next to what its own reports and filings show has actually been paid out or sold, and explains the gap.

What Arrived claims

The claims have moved with the market. In April 2022, Benzinga carried Arrived’s statement that properties held at least six months had appreciated 14.2% on average, for an estimated total annualised return of 20%. That was a marked-to-comps figure in the hottest housing market in a generation, and Arrived no longer quotes it. The current claim, first carried by Benzinga in June 2025 and shown on Arrived’s Historical Returns page as of Q1 2026 (as read by CrowdfundedWealth and Lofty, 2026), is that across 173 exited properties the average total return was 18.6% over the hold period, not annualised. The same Benzinga piece notes that a handful of properties sold for less than their purchase price. Arrived also claims the private credit fund has “consistently delivered” 8.1% annualised with no losses.

What has been realised

Dividends are real and audited: $10.5M in 2025 ($3.3M of it in Q4), $3.7M-plus in Q1 2026, about $4.3M in Q2 2026 (Arrived quarterly reports). The yields those dividends represent are the numbers in the chart below, and they are what the investor has actually received.

Sales are where claimed and realised meet, and here the record is thin and hard to check. The sale Arrived has documented in full is a house near Charlotte it called The Centennial: offered in September 2021 to 154 investors at a $285,000 purchase price with 66.7% mortgage financing, sold in August 2024 at a 34.7% total return, 11.2% a year, of which dividends were 14.5% (4.7% a year) and the rest appreciation (Arrived, “A Full Breakdown of Dividends + Appreciation of an Arrived Property From Purchase to Sale” and October 2024 Performance post; Benzinga, November 2024). That is one leveraged house bought near the bottom of the rate cycle. The 173-home figure is the one to scrutinise. It is roughly a third of the 536 funded properties, yet the 1-Ks we could read (Arrived Homes 3 with 82 properties, Arrived Homes 4 with 66 at December 31, 2025, up from 31) show growing portfolios, so most of the 173 must sit in the two earliest issuers or the residential fund. Arrived publishes no sale-by-sale table with dates, prices, hold periods or dollar weighting, and its returns page requires a login. Until it does, treat 18.6% as a claim about a cohort you cannot buy.

The filings

The issuer-level annual reports for fiscal 2025 (filed late April 2026) give the unglamorous version. Arrived Homes 3, LLC: consolidated rental income $2,060,996, up from $1,805,660 in 2024, across 82 properties; consolidated operating expenses $2,101,805, up from $1,777,769, the increase attributed to property taxes, insurance premiums, repairs, maintenance and utilities. Arrived Homes 4, LLC: rental income $898,023, up from $173,783 as its portfolio grew from 31 to 66 houses. Arrived STR, LLC: rental income about $1.7M, down from about $2.0M, with a property-manager transition blamed for the vacancy. The Arrived Homes 3 numbers deserve a second look: operating expenses above rental income means the issuer ran an accounting loss in 2025. The expense line includes depreciation, a non-cash charge, so this is not the houses losing cash; but the 3.9% dividend was paid out of a book whose costs rose 18% while rents rose 14%.

The gap and why

Three reasons. First, the claimed figures are appreciation-heavy and the appreciation is Arrived’s own mark; a seller’s comparable-sales estimate is a starting point for a negotiation, not a price. Second, costs: property taxes, insurance and repairs have run ahead of rents nationally since 2022, and the 2025 1-Ks show exactly that. Third, cohort: the documented sale comes from the 2021 vintage, bought at a lower price and rate and with leverage; the 2024 and 2025 houses have not been tested by a sale, and their yields (3.5% to 3.6% in the first half of 2026) are the ones a new investor gets.

This section explains the three exits, what each costs, how long each takes, and what happens to your shares if Arrived itself fails.

The scripted exit: Arrived sells the house

Every single-family offering describes a target hold of 5 to 7 years, and Arrived’s help center says it may sell earlier than five or hold past seven when it judges that best for shareholders (“What is the anticipated holding period?”, 2026). Vacation rentals carry a hold of 5 to 15 years. Investors have no vote. On sale, the series pays commissions and closing costs, repays any debt, distributes the balance, and dissolves. No promote, but note the quieter conflict: Arrived earns 0.6% a year for as long as the house is held, and nothing extra for selling it. The documented sale, The Centennial, closed in August 2024, just under three years after its September 2021 offering. Nothing in the structure entitles you to your money on a date.

The fund redemption plan

The funds allow a redemption request after a six-month hold, processed at the quarter’s end at the then-current NAV. The fund caps redemptions at 5% of NAV a quarter and 20% a year; requests are reviewed within 7 calendar days of the window closing and paid within the following 10 business days; a 1% fee applies inside three years (Arrived help center, 2026). The caps are the part that matters. A non-traded REIT’s redemption plan works until enough people want out at once: Fundrise suspended its Equity REIT redemption plan on October 1, 2025 ahead of its April 29, 2026 eREIT consolidation, and RealtyMogul suspended the repurchase plans of both its REITs on April 21, 2026 (Forms 1-U). Arrived’s funds are small enough that a few hundred investors could hit the 5% quarterly cap. We found no report of Arrived proration or suspension as of September 17, 2026.

The secondary market

Arrived’s help center lists eligible properties for trading windows from at least September 2025; the public launch, and the Series B that paid for it, came in November 2025. Shares in a house become eligible once the offering is fully funded and six months old; you must have held them 60 days and been an Arrived investor for 60 days before the window. The market opens for one week each month; every order is a limit order; a trade happens only when a bid and an ask cross, so a listing with no buyer expires. The executing broker may take up to 2.5% from each side (Arrived help center, 2026). Arrived does not, as far as we could find, publish volume, the number of properties with any trade, or the spread between the last trade and the Arrived Valuation. Without those three figures no one can say what the shares are worth on the way out. The BBB complaint file (24 complaints over three years as of September 2026) includes several describing shares that stayed ineligible through a window, or were listed at a discount and found no buyer; unverified, but exactly the failure mode a thin, once-a-month matching market produces. Ark7 runs its secondary on a registered alternative trading system with no commission after a 12-month hold; Arrived’s is newer and, on the fee, more expensive.

If Arrived fails

The houses are owned by the series LLCs, not by Arrived Holdings, and the operating agreements provide for a replacement manager or a liquidation if the manager ceases to operate. Your shares would survive the parent’s insolvency; your liquidity would not, and a supervised wind-down of several hundred houses would take years. Landa, a smaller competitor with a $5-share structure, is the live example: its lenders sued in New York in November 2024 over more than $35M of defaulted loans, a court-appointed manager took control of its 119 properties in February 2025, and TechCrunch reported the app dark on May 23, 2025. Arrived, with $61.7M of venture funding, is not in that position, but the structure is the same on both platforms, and it protects your title, not your timing.

This section explains why Arrived is unusually easy at tax time, and where the easy version stops.

The form

Every Arrived series, the Single Family Residential Fund, the City Funds and the income fund elect to be taxed as real estate investment trusts under Sections 856 to 860 of the Internal Revenue Code (Arrived blog, “How Is My Arrived Investment Taxed?”). A REIT pays no entity-level tax if it distributes at least 90% of its taxable income (Section 857), and it reports to shareholders on Form 1099-DIV, one per issuer, by January 31. There is no Schedule K-1 and no extension because a sponsor was late. This is the single clearest advantage Arrived has over Fundrise’s eFunds, most CrowdStreet and RealtyMogul deals, and every LLC syndication, which issue K-1s that arrive in March or later.

The character of the income

Box 1a, ordinary dividends: taxed at your marginal rate, but qualifying for the 20% deduction under Section 199A(b)(1)(B) for qualified REIT dividends, reported in Box 5; Arrived’s blog states that for its dividends Box 5 equals Box 1a. The One Big Beautiful Bill Act, signed July 4, 2025, made the deduction permanent at 20% (Paul Hastings; Jones Day, July 2025), so a 37% bracket investor pays an effective 29.6% on the ordinary portion. Box 3, nondividend distributions: return of capital, common for rental REITs because depreciation shelters the cash; untaxed when paid, but it reduces your basis. Box 2a, capital gain distributions: when a series sells its house at a gain, the gain passes through as long-term capital gain regardless of your holding period, with any unrecaptured Section 1250 depreciation taxed at up to 25% (Section 1(h)(6)). The 28% collectibles rate does not apply; a house is not a collectible.

Selling shares

A sale on the secondary market is a sale of REIT stock: expect a Form 1099-B from the executing broker, with the gain measured against your basis (purchase price minus cumulative return of capital) and long-term if held more than one year. A fund redemption is treated the same way, as is the liquidating distribution when a house is sold and the series dissolves.

State tax

Because the income arrives as a dividend rather than as your share of a partnership’s rental income, you do not file a non-resident return in Georgia because a house sits there; you report the dividend in your home state. That is the second clear advantage over K-1 platforms, where six states can mean six filings.

IRAs and UBTI

REIT dividends are excluded from unrelated business taxable income under Section 512(b)(1), and because the REIT rather than the shareholder owns any mortgage, the debt-financed income rules of Section 514 do not reach you. Arrived shares are therefore clean IRA assets, but Arrived is not an IRA custodian: you need a self-directed IRA, and Rocket Dollar’s $720 first year is 19 times the dividend on a $1,000 position. In an IRA you also lose the 199A deduction and the return-of-capital deferral, which are the two tax features that make the taxable-account case; put Arrived in a taxable account and your bond fund in the IRA, not the other way round.

This section starts with the risks that would end the investment, then gives the dated record, and ends with what we could not verify.

The risks that end it

Valuation. Arrived marks its own houses using comparable sales it selects, with no independent appraisal and no market price until a secondary trade prints. Every appreciation figure, every dashboard “total return”, and the NAV at which the funds redeem rest on that mark. A mark 10% high on a house yielding 3.6% wipes out three years of dividends on the day it is corrected, and the correction comes at sale.

Cost inflation. The 2025 1-Ks show taxes, insurance and repairs rising faster than rent on the Arrived Homes 3 book. A 3.6% yield can go to 2% without a single vacancy.

Vintage. Houses bought in 2024 and 2025 were bought near peak prices with mortgage rates above 6% suppressing the buyer pool Arrived will one day sell to. The 2021 vintage’s 34.7% exit, earned with two-thirds leverage, says nothing about theirs.

Platform concentration. Arrived is sourcer, manager, valuer, market operator and, through its fee, the one party paid regardless of outcome. There is no independent trustee, no third-party NAV administrator, and no adviser with a fiduciary duty to you. That is legal under Regulation A, and it is the design.

The dated record

• September 18, 2020: Arrived Homes, LLC files Form 1-A; qualified February 17, 2021 (File No. 024-11325).
• May 17, 2022: $25M Series A led by Forerunner Ventures (PR Newswire; TechCrunch).
• November 29, 2023: Single Family Residential Fund launches (Arrived blog; Benzinga, December 2023).
• August 2024: Arrived Debt Fund, LLC (Private Credit Fund) launches (The Real Estate Crowdfunding Review). The same month, The Centennial sells at a claimed 34.7% total return (Arrived October 2024 Performance post).
• May 2025: Seattle City Fund launches (Arrived blog). On May 28, 2025 the Washington DFI enters Consent Order S-24-3840-24-CO01 against Arrived Holdings and seven issuers for failing to notice-file their offerings: a $40,000 fine, $343.75 of costs and a cease-and-desist.
• November 12, 2025: $27M Series B led by Neo; Secondary Market launches publicly (GeekWire; CNBC, November 13, 2025).
• April 2026: Fiscal 2025 Forms 1-K filed for Arrived Homes 3, 4 and 5, Arrived STR and Arrived STR 2 (SEC EDGAR).
• Q2 2026: Single-family yield 3.5%, vacation rental 2.9%, income fund 8.7%; residential fund valuation moves to a 24-month income look-back (Arrived Q2 2026 report).

Regulatory actions

One, and it is a paperwork case. On May 28, 2025, the Securities Division of the Washington State Department of Financial Institutions entered Consent Order S-24-3840-24-CO01 against Arrived Holdings, Inc.; Arrived Homes, LLC; Arrived Homes 3, LLC; Arrived Homes 4, LLC; Arrived STR, LLC; Arrived STR 2, LLC; Arrived Debt Fund, LLC; and Arrived SFR Genesis Fund, LLC. The finding: since about 2021 the respondents had sold Regulation A Tier 2 securities to Washington residents without notice-filing the offerings with the state, as Tier 2 issuers must wherever they sell. The order imposes a $40,000 fine, $343.75 of investigative costs and a cease-and-desist; the respondents neither admitted nor denied the findings (Washington DFI, securities enforcement actions, 2025). A notice-filing lapse is a compliance failure, not a fraud finding, and $40,000 is the going rate for one; it is still a Seattle company missing its own state’s filing for four years, and the reader should check whether other states have followed. We found no SEC enforcement action, no FINRA action, and no court judgment against Arrived Holdings, Arrived Homes or any of its issuers on the public record as of September 17, 2026.

The 2026 “class action” and “SEC inquiry”

Several pages published in 2026 (AngelInvestorsNetwork, LegalClarity, Lawfold) state that a federal class action was filed against Arrived Homes “in mid-2026” alleging inflated projections, hidden fees and understated illiquidity, that it “cites $162 million raised from retail investors”, that it is “in active discovery”, and that the SEC “has reportedly begun an inquiry” into Arrived’s Regulation A compliance. We could not verify any of it. None of the pages names a plaintiff, a court, a docket number or a law firm. No outlet that covers Arrived (GeekWire, CNBC, TechCrunch) has reported a suit, and no securities-litigation firm has issued the investor-solicitation release that accompanies every real securities class action. The “$162 million” contradicts the $330M invested that Arrived gave CNBC in November 2025. A case filed in mid-2026 would not be in discovery by September 2026 under the Private Securities Litigation Reform Act’s automatic stay. The three sites publish a “lawsuit” page for most platforms they cover. As of September 17, 2026 there is no evidence a class action or an SEC inquiry exists; if a docket number appears, this section will be rewritten.

Complaint patterns (unverified customer reports)

BBB. Arrived Homes, LLC holds an A- rating and BBB accreditation, with 24 complaints closed over the prior three years and 11 in the prior 12 months as of September 2026. The themes are exit timing (shares ineligible or unsold in the secondary window, months to access funds after a sell order), fee transparency, and returns below what the marketing implied. For a platform with 945,000 registrations, 24 in three years is a low count; 11 in the latest year, mostly about the secondary market, is the trend to watch.

Trustpilot. Arrived.com carried a rating of about 4 of 5 across roughly 220 reviews as of September 2026 (earlier 2026 citations say 4.3). The negatives repeat three complaints: a stated 5% return that came out at 2%; fees on a $250,000 house adding up to around $50,000 across the hold; and no way to sell house shares, a complaint that predates the November 2025 secondary market and may or may not have been answered by it.

Two lists, specific about the situation.

It is for you if

• You have $100 to $5,000 you can leave alone for seven years, you want a slice of a specific house in a specific town rather than an index, and you will read the 1-K.
• You are in a 32% or higher bracket, investing in a taxable account, and value a 1099-DIV with a 20% Section 199A deduction over a K-1 that arrives in April.
• You want a floating-rate private credit sleeve at $100 a time and understand that the income fund’s 8.7% (Q2 2026) is a Treasury spread from a two-year book that has not seen a default cycle.

Skip it if

• You need income. A 3.5% net yield (Q2 2026) is below a savings account (4.21% APY, September 2026), with none of its liquidity.
• You might need the money inside three years. The exits cost 5% (secondary round trip) or 1% (fund) and may not be available in the month you need them.
• You are considering the vacation rentals. 1.53% to 2.9% annualised (first half of 2026) after a 5% sourcing fee and a 15-year script is a donation to a property manager.
• You are investing through an IRA under about $25,000. The custodian’s $720 first-year fee exceeds the dividend, and the IRA discards the tax features that make Arrived worth owning.
• You want diversification. One house is one tenant, one roof and one zip code; the residential fund or a public REIT does the job at similar or lower cost.

This section puts five competitors and a public REIT ETF beside Arrived, then says which reader goes where.

Table: Arrived and its alternatives on the same $1,000, as of September 2026

The reader who wants a specific house goes to Arrived or Ark7: Ark7 on fees (no AUM fee, no secondary commission), Arrived on scale, reporting quality and the REIT tax wrapper. The reader who wants income above a savings account goes to the Arrived Real Estate Income Fund or Groundfloor, noting Groundfloor’s published default rate, mostly past-due legacy book and going-concern language, while Arrived’s fund has neither a default nor a cycle behind it. The reader who wants diversified private real estate with quarterly liquidity has Roots (short record, one region, strong self-reported numbers), Fundrise (long record, weak recent numbers, a suspended redemption plan) and the Arrived SFR Fund (short record, national, 4.3%). The reader who wants liquidity buys VNQ. Lofty is for people who want a rental on a blockchain and can live with a round-trip fee of 5.5% to 8%.

The real sequence, and the six documents to read before the wire.

1. Create an account at arrived.com and complete identity verification: legal name, address, date of birth, SSN or ITIN.
2. Link a bank account by ACH. Arrived does not charge for deposits.
3. Choose a product. Houses and vacation rentals list with the purchase price, target rent, raise size and the offering supplement; the funds have their own pages.
4. Enter a share count (minimum 10 shares, $100) and sign the subscription agreement; non-accredited investors confirm the 10% of income or net worth limit.
5. Wait for the offering to close. Your money is committed once you sign; shares are issued at closing.
6. Set dividends to reinvest or pay out, and note the six-month date after which the shares become eligible for the secondary window.

Before wiring money, read six things:

• The offering circular and the supplement for your house, on the property page and on EDGAR under the issuer’s name: the Use of Proceeds table (how much of the raise is sourcing fee, closing cost and reserve), any mortgage, and the Management Compensation table.
• The most recent Form 1-K of the issuer (Arrived Homes 5, LLC for 2025 and 2026 houses): rental income against operating expenses, and whether the auditor’s report is clean.
• The fee help page, confirming the asset management fee is 0.6% of purchase price, not the older 1% of equity, for the product you are buying.
• The redemption help page for the fund, and which fee schedule applies to purchases on your date; for the income fund, the offering service and organisational fees in the circular.
• The secondary-market fee page, and recent trading activity for a comparable house if Arrived will show it; if it will not, assume no liquidity.
• The latest quarterly performance post: compare the dividend yield for your product with the best savings rate that week, and if the savings rate is higher, write down in one sentence why you are buying.

Arrived is the best-run of the fractional single-family platforms and a mediocre investment, and both halves of that sentence are true at once. The reporting is quarterly, the filings audited, the tax wrapper the simplest in private real estate, the fees disclosed in one place, and there is no promote. Set against that: a net cash yield of 3.5% to 3.9% on houses and 1.5% to 2.9% on vacation rentals, a fee stack that takes about 3.3% on the way in and around 6% on the way out, a valuation the seller sets, a sale date the seller picks, a ten-month-old secondary market that charges up to 5% for a round trip and publishes no volume, and a home-state regulator that fined it for four years of missed notice filings. The return the platform sells is appreciation; the return it has delivered is a dividend below a savings account. We rate it 3 of 5, a compromise between the quality of the operation and the quality of the deal.

The rating would rise to 3.5 or 4 if Arrived published a dollar-weighted, sale-by-sale realised table showing an IRR above 7% net for post-2022 vintages, or if the secondary market published monthly volume and last-trade-to-valuation spreads inside 5%. It would fall to 2 if the fund redemption plan were prorated or suspended for two consecutive quarters, if the single-family dividend yield fell below 3% for a full year, if the fiscal 2026 1-Ks (due April 2027) showed cash operating expenses above 60% of rental income on the newer issuers, if a second state followed Washington with a notice-filing order, or if a docket for the alleged class action turned out to exist.

What to watch, with dates: the Q3 2026 performance post (November 2026) for the single-family and vacation rental yields against the savings rate that week; any help-center change to the redemption caps or fees; the first Arrived disclosure of secondary-market volume; the fiscal 2026 Forms 1-K for Arrived Homes 5, LLC and Arrived STR, LLC (April 2027) for rental income against operating expenses; the income fund’s first default; and the state securities enforcement lists for any order after Washington’s.

Nothing in this review is investment advice; it is research on a platform, as of September 17, 2026, for readers making their own decisions.