Fundrise's standard real estate investment fees include a 0.15% annual advisory fee and a 0.85% annual fund management fee, commonly presented as a combined 1%. However, total fund expenses also reflect operating, administrative, and financing costs that vary by investment.
For the first half of 2026, the Flagship Fund reported a 2.04% annualized net expense ratio, while the Income Fund reported 2.54%, both including interest expenses. Understanding how these costs are calculated helps you compare Fundrise with other fractional real estate investing structures, including property-level ownership through mogul.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
Standard annual fees: Fundrise generally charges a 0.15% advisory fee at the investor level and a 0.85% management fee within its real estate funds
2026 fund expenses: The Flagship Fund reported a 2.04% annualized net expense ratio for the first half of 2026, while the Income Fund reported 2.54%, including interest expenses
Additional operating costs: Fund-level expense ratios include management and other fund expenses, so the 0.85% management fee should not be added again when calculating total fund costs
Redemption arrangements: Fundrise's Flagship and Income Funds offer quarterly repurchase opportunities without early liquidation penalties, while certain eREITs have different redemption terms
mogul's pricing structure: mogul charges a one-time 5% platform fee, without an ongoing rental-income fee or traditional recurring annual AUM fee on invested equity
Understanding Fundrise and Its Investment Structure
How Fundrise Real Estate Investing Works
Fundrise provides access to real estate through professionally managed investment funds. Investors purchase interests in funds holding residential properties, commercial real estate, and real estate-related investments.
The platform's main real estate offerings include the Flagship Real Estate Fund, Income Real Estate Fund, and various eREITs.
These products generally operate through pooled investment structures. Instead of selecting individual homes, investors participate in portfolios managed under each fund's investment strategy.
This differs from property-level fractional investing, where investors acquire ownership interests connected to specific properties.
Understanding different real estate investments helps explain why fund-based and property-specific platforms use different fee structures.
Fundrise vs. Traditional REITs
Fundrise's principal real estate funds include interval funds that elect REIT tax treatment, alongside other non-traded real estate investment vehicles.
A Real Estate Investment Trust, or REIT, is a company that owns, operates, or finances income-producing real estate.
The structure of real estate investment trusts influences ownership, expenses, distributions, and liquidity.
Key distinctions include:
Publicly traded REITs: Shares trade on stock exchanges, with market prices changing throughout trading sessions
Non-traded REITs: Shares are not listed on public exchanges, and redemption arrangements depend on the investment's terms
Interval funds: Registered funds that periodically offer to repurchase a specified percentage of outstanding shares
Property-specific LLCs: Investors acquire interests in entities holding individual real estate assets
These distinctions matter because management expenses, tax reporting, and exit arrangements vary across investment structures.
Fundrise Fees in 2026: Complete Breakdown
Fundrise's published fee structure identifies two primary annual charges for standard real estate investments.
Additional fund-level expenses are reflected in each investment vehicle's financial reporting.
Annual Advisory Fee: 0.15%
Fundrise generally charges an annual advisory fee of 0.15% of the value of eligible assets invested through its platform.
This fee compensates Fundrise Advisors for investment advisory services.
For example:
$1,000 invested: $1.50 annually
$10,000 invested: $15 annually
$50,000 invested: $75 annually
These examples assume a constant investment value and the standard fee rate.
Fundrise's 2026 investment adviser disclosures confirm the 0.15% annualized advisory fee for eligible real estate fund investments and explain that individual funds incur separate expenses.
Certain promotional arrangements may provide advisory fee waivers for eligible investors.
Annual Fund Management Fee: 0.85%
Fundrise's standard real estate funds charge a 0.85% annual management fee, generally calculated using average daily net assets.
The fee compensates the investment manager for administering fund investments and overseeing portfolio operations.
At a constant $10,000 net asset value, a 0.85% annual management fee would correspond to $85.
Unlike the investor-level advisory fee, this charge is paid by the fund and reflected in its operating expenses.
The Flagship Fund financial report, covering the six months ended June 30, 2026, confirms the 0.85% annual management rate.
The 0.85% management fee is already included within the fund's reported expense ratio. Adding it again would double-count that component.
Total Fund Expenses in 2026
The combined 1% advisory and management fee schedule provides a starting point for understanding Fundrise's pricing.
However, fund expense ratios also reflect other costs associated with running and financing investments.
The latest available semiannual reports, covering January through June 2026 and filed in August, show:
Flagship Real Estate Fund
Annualized net expense ratio including interest: 2.04%
Annualized net expense ratio excluding interest: 1.54%
Standard annual fund management fee: 0.85%
Income Real Estate Fund
Annualized net expense ratio including interest: 2.54%
Annualized net expense ratio excluding interest: 1.94%
Standard annual fund management fee: 0.85%
The Income Fund financial report, covering the same six-month period, provides the current fund-level financial statements and expense information.
These ratios are annualized figures based on first-half 2026 operations, not projections for the full year.
The difference between the fund management fee and total operating expenses reflects additional costs such as:
Financing and interest expenses
Marketing and administrative expenses
Legal and accounting services
Custody and transfer-agent services
Other fund operating expenses
The expense ratios include the 0.85% management component but may not capture every underlying property-level cost or separately assessed investor advisory fee.
The SEC's investment fee comparison guidance, updated in July 2025, explains how recurring fund expenses affect investor outcomes over time.
Affiliated Management and Property Expenses
Fundrise's investment structures may also involve transactions and services provided by affiliated entities.
Depending on the fund and underlying assets, these arrangements can include acquisition services, property management, loan servicing, and investment administration.
Such charges are reflected according to the applicable financial statements and offering documents.
The distinction is between:
Fees charged directly to an investor's account
Expenses paid by the investment fund
Operating expenses incurred by underlying properties
Transaction costs associated with acquiring or disposing of assets
These categories influence different parts of the investment's financial performance.
Fundrise Investment Options and Their Fees
Flagship Real Estate Fund
The Flagship Fund provides diversified exposure to real estate investments, including residential and other property-related assets.
Its portfolio includes rental housing, industrial properties, and investments connected to newer infrastructure strategies.
The fund's standard management fee is 0.85% annually. Its reported 2.04% annualized net expense ratio for the first half of 2026 also reflects other operating and financing expenses.
The Flagship Fund operates as an interval fund, with quarterly share repurchase offers governed by its prospectus.
Income Real Estate Fund
The Income Fund focuses on real estate-backed income investments, including debt and preferred equity positions.
Its objective differs from the Flagship Fund's broader appreciation-oriented strategy.
The Income Fund charges a standard 0.85% annual management fee and reported a 2.54% annualized net expense ratio, including interest, for the first half of 2026.
As an interval fund, it also provides scheduled repurchase opportunities under its governing terms.
eREIT Investment Structures
Fundrise has also operated multiple eREITs with different investment strategies and redemption provisions.
An important change occurred on April 29, 2026, when seven legacy eREIT entities merged into Fundrise eREIT, LLC.
The April 2026 merger filing documents the consolidation and the exchange of interests into the surviving entity.
Other eREIT products may continue to have separate operating and redemption arrangements.
This makes the investment's specific legal entity important when comparing current Fundrise fees.
Fundrise Innovation Fund
Fundrise also offers investment exposure beyond traditional real estate.
Its Innovation Fund focuses on technology companies and venture-style investments.
Historically, the fund used a 1.85% annual management fee within its private investment structure.
On March 19, 2026, the Innovation Fund began trading on the New York Stock Exchange under ticker VCX, changing its investment and trading structure.
The 2026 Innovation Fund filing documents that transition.
Because VCX is a publicly traded venture-focused fund, its current prospectus and operating expenses should be assessed separately from Fundrise's real estate fee schedule.
Fundrise Redemption Fees and Withdrawal Terms
Quarterly Repurchase Programs
Fundrise's Flagship and Income Funds generally provide quarterly repurchase opportunities.
These programs allow investors to submit requests for the fund to repurchase eligible shares.
The funds do not charge a standard early liquidation penalty, but repurchases remain subject to their respective program terms and available repurchase capacity.
If requests exceed the amount the fund offers to repurchase, accepted shares may be prorated.
Fundrise's June 2026 semiannual reports describe these repurchase arrangements and the amounts repurchased during the reporting period.
Legacy eREIT Redemption Fees
Certain legacy eREIT investments have carried an approximately 1% early redemption penalty for shares held less than five years.
The applicable terms vary by entity and holding period.
Redemption arrangements also changed for several products during the April 2026 merger.
Some predecessor funds temporarily suspended redemptions during the reorganization. A subsequent July 2026 redemption update stated that the surviving Fundrise eREIT anticipated processing second-quarter requests under its redemption plan.
These fund-specific arrangements should not be interpreted as a single redemption policy applying to every Fundrise investment.
How Liquidity Differs Across Real Estate Investments
Liquidity refers to how readily an investment can be converted into cash.
Publicly traded securities generally provide access to exchange trading, while non-traded real estate funds and property-level interests follow their own redemption or exit arrangements.
Fundrise's interval funds offer scheduled repurchase programs. Property-specific fractional ownership generally involves a defined ownership period and exit process.
Understanding cash flow versus appreciation also helps distinguish income received during ownership from potential proceeds when an investment is sold.
How Fundrise Fees Affect Investment Returns
A $10,000 Fee Illustration
Consider a hypothetical $10,000 investment in a standard Fundrise real estate fund.
Using its published annual fee schedule:
Advisory fee at 0.15%: $15
Fund management fee at 0.85%: $85
Combined standard fee illustration: $100 annually
This calculation assumes the investment value remains constant and excludes other fund operating expenses.
The first-half 2026 expense ratios provide additional context.
For example, applying the Flagship Fund's 2.04% annualized net fund expense ratio to a hypothetical constant $10,000 average fund value produces $204 in annualized fund-level expenses.
That amount already includes the fund's management fee. The separate 0.15% advisory fee may also apply at the investor-account level.
These figures illustrate how percentages translate into dollar amounts. Actual costs vary with investment values, fund expenses, fee waivers, and the period invested.
Fund Returns and Expense Ratios
Expense ratios describe costs, while investment returns measure financial performance.
The two should be analyzed separately.
For the six months ended June 30, 2026, Fundrise's semiannual reports showed NAV-based total returns of approximately:
Flagship Fund: 6.03%
Income Fund: 4.89%
These figures cover six months and are not annualized. They reflect the funds' historical NAV performance over the reporting period rather than guaranteed future results or identical after-fee outcomes for every investor.
A real estate investment portfolio can include properties with different income, appreciation, and financing characteristics. These factors influence results alongside management fees.
Comparisons are most useful when return metrics cover equivalent periods and use consistent fee assumptions.
Understanding Other Investment Metrics
Several financial metrics can help explain real estate performance.
Internal rate of return (IRR): An annualized return calculation that accounts for the timing of investment cash flows
Cash-on-cash return: Annual cash flow divided by the amount of cash invested
Net operating income (NOI): Property income remaining after qualifying operating expenses, before financing costs and income taxes
Multiple on invested capital (MOIC): Total investment value or proceeds divided by original invested capital
Understanding internal rate of return can help when reviewing investment projections that include distributions and eventual sale proceeds.
Financing also matters. Using borrowed capital to acquire property is known as leverage in real estate, which changes both the equity required and the timing of subsequent cash flows.
These factors should be considered alongside fees when evaluating property-level investment economics.
Fundrise vs. Property-Level Fractional Ownership
Fundrise primarily provides exposure through professionally managed portfolios, while property-level fractional platforms allow investors to select ownership interests in identified properties.
Investment Selection and Portfolio Structure
Fund-based investing provides exposure across multiple assets through one investment vehicle.
Property-level fractional ownership connects investment participation to a specific residential asset.
The distinction affects portfolio construction.
Fund managers determine the holdings within a pooled portfolio, while property-specific structures allow investors to choose assets based on their individual financial characteristics.
Investors may evaluate factors such as:
Property location and rental strategy
Acquisition price and financing
Expected rental income and operating expenses
Property-specific underwriting assumptions
Potential exit timing and sale proceeds
This asset-level approach is relevant when comparing management fees because each property's operating economics can be examined individually.
Tax Treatment: REITs vs. LLC Ownership
Tax treatment differs across investment structures.
REITs generally report distributions through Form 1099-DIV, with the tax treatment depending on the character of each distribution.
The IRS's REIT dividend reporting instructions explain reporting categories such as ordinary dividends, capital gain distributions, and nondividend distributions.
Partnership-taxed LLC investments generally report an investor's allocated income, deductions, and other tax items through Schedule K-1.
The partnership tax reporting instructions explain the applicable reporting rules and limitations.
Through qualifying property-level ownership structures, investors may receive allocations associated with investment property tax benefits, including depreciation.
However, eligibility and the ability to use deductions depend on the entity structure and individual tax circumstances.
These differences make tax reporting an important part of comparing investment structures, alongside fees and operating performance.
How mogul Structures Its Real Estate Investment Fees
mogul offers property-level fractional ownership through dedicated LLCs, connecting investors to individual residential properties rather than a pooled fund.
Founded by former Goldman Sachs real estate professionals, the platform draws on more than $10 billion in collective institutional real estate transaction experience.
Its model combines property-specific underwriting, professional management, and a one-time 5% platform fee.
One-Time Platform Fee
mogul charges a one-time 5% platform fee as part of the initial property transaction.
5% one-time platform fee: Calculated using the property's purchase price and capitalized into the initial transaction
Capitalizing a fee means incorporating it into the property's initial funding requirements.
For example, a hypothetical $300,000 property would have a $15,000 one-time platform fee at 5%.
This fee forms part of the property's initial investment economics.
Fees During Ownership
mogul does not charge an ongoing rental-income fee or a traditional recurring annual AUM fee on invested equity.
Each property's offering documents outline financing, operating reserves, property expenses, and relevant third-party management costs.
Property Selection and Investor Alignment
The property investment selection process begins with market screening, underwriting, and acquisition analysis.
mogul evaluates residential properties using market fundamentals, rental assumptions, financing structures, and operating plans.
Fewer than 1% of reviewed properties pass its stated diligence process.
The platform also co-invests alongside members in every property offered, creating shared economic participation in the underlying assets.
Each selected property is held through a dedicated LLC, with investors acquiring membership interests representing proportional ownership.
mogul reported $110 million in assets as of June 1, 2026, and more than 50,000 platform users as of September 28, 2026.
Comparing Total Costs Across Investment Structures
Fees and Property-Level Economics
Fundrise and mogul calculate fees using different financial bases.
Fundrise's standard real estate model combines an investor-level advisory fee with fund-level management and operating expenses.
mogul's model includes a one-time 5% platform fee capitalized into the initial transaction.
These differences matter because the same percentage does not necessarily produce comparable costs across investment structures.
A complete analysis can consider:
Initial investment and acquisition costs
Annual advisory or asset management fees
Property-level operating and financing expenses
Rental income and distribution arrangements
Potential exit costs and ownership duration
For property-specific investments, short-term versus long-term rentals also have different operating requirements that influence expenses and cash flow.
Using Property Calculators for Fee Analysis
Property analysis tools help estimate rental income, financing costs, and potential investment outcomes.
mogul provides several free calculators that support this process:
Investment property analysis calculator: Estimates projected rental income, ROI, IRR, and other property metrics
Rental property income calculator: Models rental income, financing assumptions, cash flow, and holding periods
Real estate investment calculator: Analyzes property economics under different financial scenarios
The tools support adjustable assumptions, allowing users to examine how changes in financing, rental income, and holding periods influence projections.
Additional platform-specific charges can be incorporated when analyzing total investment costs.
Why mogul Appeals to Fee-Conscious Investors
Understanding real estate investment fees involves more than comparing annual percentages. mogul combines transparent property-level economics, selective underwriting, and professional management in a fractional ownership platform built around individual residential assets.
Its approach offers several benefits:
Greater cost visibility: Understand how the one-time platform fee, rental income, and property operating expenses fit into each investment's financial structure
More informed property selection: Evaluate individual residential assets through institutional-style underwriting, detailed rental assumptions, and property-specific financial analysis
Streamlined ownership experience: Access professionally managed properties through dedicated LLCs while experienced teams coordinate day-to-day rental operations
For investors comparing Fundrise's fund-based fee structure, mogul offers a compelling combination of institutional real estate expertise, transparent pricing, and direct participation in individual property investments.
Its property-focused approach creates a streamlined way to explore residential real estate opportunities with greater visibility into the assets and economics behind each investment.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
How much does Fundrise charge annually in 2026?
Fundrise's standard real estate fee schedule includes a 0.15% annual advisory fee and a 0.85% annual fund management fee. However, the latest available semiannual filings show annualized net fund expense ratios of 2.04% for the Flagship Fund and 2.54% for the Income Fund for the first half of 2026, including interest expenses. These ratios incorporate the respective fund management fees, while separately charged investor advisory fees may also apply.
Are Fundrise's total expenses higher than its advertised 1% fee?
Fundrise's advertised 1% combines its standard advisory and fund management rates. Actual fund expense ratios can be higher because they include other operating costs, such as administration, marketing, professional services, and financing interest. The 2026 Flagship and Income Fund reports show these additional expenses. The management fee is already included in the reported fund expense ratios and should not be counted twice.
Does Fundrise charge fees when investors withdraw money?
Fundrise's Flagship and Income Funds do not charge standard early liquidation penalties, although repurchase requests follow quarterly schedules and remain subject to fund limitations. Certain legacy eREIT investments have used an approximately 1% early redemption penalty for holdings under five years. Several eREITs also underwent a merger in April 2026, so redemption terms depend on the specific investment entity.
How do Fundrise fees affect long-term returns?
Fundrise fees influence investment results through investor-level advisory charges and fund-level operating expenses. Fund management fees are incorporated into fund expenses, while other costs can include administration and financing. Over a multiyear period, the total effect depends on investment values, operating expenses, holding periods, and fund performance. Comparing investments using consistent return periods and net-of-fee figures provides a more meaningful assessment.
How does mogul's fee structure compare with Fundrise?
mogul charges a one-time 5% platform fee based on property purchase price, without an ongoing rental-income fee or traditional recurring annual AUM fee on invested equity. Fundrise's standard real estate investments use investor-level advisory fees and fund-level management and operating expenses. mogul also offers property-specific LLC ownership, allowing investors to evaluate individual residential assets and their financial assumptions rather than relying exclusively on pooled fund exposure.