Fundrise Review: Pros, Cons, And Alternatives

Fundrise Plans And Funds In 2026

You choose one of three plans, and Fundrise builds your mix from its funds. According to Fundrise's fee page, the plans are Supplemental Income, Balanced Investing and Long-Term Growth, built from Fundrise's real estate funds, including the Flagship Real Estate Fund and the Income Real Estate Fund. Our passive income ideas compare the income plan with other sources of passive cash.

Real Estate Fund

The Flagship Real Estate Fund owns a mix of mostly residential and industrial properties across the country. It's the core of the Balanced and Long-Term Growth plans. Returns come from rent and from properties rising in value, so the payout is lower than the Income Fund's and the share price moves more. Robert answered a reader in the comments that Fundrise "mostly do[es] multi-family residential," and that still describes much of what it owns. See how it compares with buying a rental yourself in our real estate investing ideas.

Income Fund

The Income Real Estate Fund lends money to real estate projects and passes the interest to investors. Fundrise lists a currently declared annualized yield of 8.16% for its income objective and a 7.75% yield for the 12 months ending September 30, 2026, on its client returns page. That beats a high-yield savings account, but the loans can default and your money isn't FDIC insured.

Goals-Based Portfolios

The old Starter and Goals-Based portfolios are now the three plans above. Pick Supplemental Income if you want cash flow, Long-Term Growth if you want appreciation, or Balanced for a mix. The plan is a target mix, not a guarantee of returns. Our beginner investing options cover where a plan like this fits for a first $1,000.

Direct Investments

Fundrise used to sell single-city eFunds (Washington, D.C. and Los Angeles) and individual eREITs. Older eREIT shares still exist for some investors and carry an early-sale penalty of about 1% if you sell within five years, according to Fundrise's help center. New investors go into the plans instead. If you still hold an eFund, you'll get a Schedule K-1 at tax time.

Venture Capital Fund

Fundrise's Innovation Fund, its venture capital fund, listed on the New York Stock Exchange as VCX in March 2026. At listing it had about $650 million in net assets and more than 100,000 investors, and its largest holdings were Anthropic, Databricks, OpenAI, Anduril, Ramp, SpaceX and Epic Games, according to Fundrise's listing announcement. It charges a 1.85% management fee, more than the 1% on Fundrise's real estate plans and well above a typical index ETF.

You can no longer buy the Innovation Fund inside a new Fundrise plan. If you want exposure, you buy VCX shares through a brokerage like any stock, and the price can trade well above or below the fund's net asset value. That's the same trade-off as any closed-end fund, and our best investing apps list covers where to buy it.

Private Credit Fund

Fundrise's private credit is now the Income Real Estate Fund described above. It makes real estate loans, including construction loans, preferred equity and mezzanine debt. Most of the assets are real estate, so it rises and falls with the property market. Compare it with a loan-only platform like Groundfloor, where you pick individual loans.

Self Directed IRA

Fundrise offers Traditional and Roth IRAs held by custodian Inspira Financial, so you can hold the same plans inside a tax-advantaged account. Under its IRA fee payment program, Fundrise pays Inspira's annual custody fee if you invest at least $3,000 through the IRA by the first cutoff date and each year after (or keep at least $25,000 invested). Smaller IRAs pay Inspira's standard fee.

If you'd rather hold Fundrise alongside other alternative assets, check whether your own self-directed IRA makes more sense: Best Self-Directed IRA Providers.

Why People Love Fundrise

I've spoken to many people who have invested in Fundrise, and three features come up again and again. Our passive income list includes Fundrise for the same reasons.

Low minimum and low effort. $10 gets you started, and Fundrise handles every property and loan. You don't need to be accredited or know how to underwrite a deal.

Transparency. Fundrise shows what its funds own, files offering documents with the SEC, and publishes year-by-year client returns, including the bad years. Customer service answers email and phone calls.

Scale. Fundrise invests in projects too big for most individual investors and often too small or specialized for big institutions. That middle market is its pitch. Smaller platforms that tried the same thing with individual loans, like PeerStreet, which filed for bankruptcy in 2023, show why scale matters.

The Fundrise subreddit also shows real frustration, mostly about returns lagging the stock market and slow withdrawals. Read both sides before you invest, and check the Fundrise alternatives if the complaints match your worries.

Fundrise Performance

Fundrise has returned 6.5% a year on average from 2018 through 2025, based on the annual advisory client returns it publishes on its client returns page. That's our compounded math on Fundrise's figures, and you can run similar numbers in our investment calculators. The ride wasn't smooth: 22.99% in 2021, then 1.50% in 2022 and -7.45% in 2023, when rising interest rates cut property values.

Here's what that looks like in dollars. $1,000 invested at the start of 2018 would have grown to about $1,654 by the end of 2025. Over the five years from 2021 through 2025, the average was about 5.4% a year. Stocks did much better over that stretch: a third-party review using Fundrise's SEC filings put the S&P 500 at 14.43% a year over the same five years. Our real estate vs. stocks comparison explains why the two often move differently.

Real estate doesn't always follow the stock market. In 2023, stocks rose double digits while Fundrise lost money, and other years have gone the other way. That's the case for holding some real estate, but it isn't a reason to expect Fundrise to beat stocks. So yes, you can make money on Fundrise, and a 6% to 7% average is in line with its history. It just isn't guaranteed, and our Fundrise alternatives cover platforms with different risk profiles.

How Do You Withdraw Money From Fundrise?

You request a withdrawal in your account, and Fundrise processes it during the fund's next quarterly repurchase offer. For the Flagship and Income funds, there's no penalty to liquidate, according to Fundrise's help center. Legacy eREIT shares held less than five years carry a penalty of about 1%, and all requests are subject to limits in each fund's offering documents. Our crowdfunding comparison shows how other platforms handle exits.

The catch is that repurchases can be limited. Interval funds offer to buy back a set percentage of shares each quarter. If more investors want out than the offer covers, you may get only part of your request. Fundrise has paused redemptions before: one reader requested a withdrawal in January 2020 and was told in April that liquidations were on hold. Other platforms have frozen investor money entirely, as RealtyMogul did in April 2026.

How Is The Share Price Set?

Fundrise's fund prices are set by periodic valuations of the underlying properties and loans, not by a live market. A purchase can land just before a markdown, which another reader experienced in December 2022 when a year-end revaluation cut the price about 7%. Check the fund's latest net asset value date before a large deposit. Our alternative investments explainer covers how private-fund pricing differs from stocks.

How Does Fundrise Compare?

Fundrise is one of the most popular real estate investment platforms online, but it's certainly not the only one. In fact, over the last few years, a fierce competition has emerged in the space.

Check out these main Fundrise competitors and see how Fundrise compares:

How Do Taxes Work?

Fundrise investments are taxed differently from stocks you hold in a brokerage account. The tax form you get depends on which Fundrise investment you own, and our explainer on REITs and corrected 1099s covers why REIT forms often arrive late.

You should receive a Form 1099-DIV for each eREIT or interval fund in your portfolio that paid at least $10 in distributions during the year, which is the same form Arrived investors get.

If you own shares of a legacy Fundrise eFund, you should receive a Schedule K-1. Our Schedule K-1 explainer covers what to do with it.

If you sold any eREIT or interval fund shares in the prior year, expect a Form 1099-B for each fund, and our late tax forms explainer covers what to do if one is missing.

Watch for corrected forms. REITs often reclassify their dividends after year-end, so a corrected 1099 can arrive in March and hold up your return. If you invest in REITs, it's smart to wait until mid-March to file, and our tax software comparison shows which programs import investment forms. 

Related: What To Do If You're Waiting On Late Tax Forms

Understand The Risks

I learned about Fundrise more than eight years ago, back when you could still invest in particular properties. Investing online in properties I'd never seen made me nervous. The move to diversified funds eased that, but the risk is still real.

My main concern is leverage and timing. Many Fundrise properties are development or value-add projects that depend on selling or refinancing at the right time. When interest rates jumped in 2022 and 2023, that model took a hit, and the -7.45% year shows it. Our real estate vs. stocks comparison covers why rates hit property values so hard. 

In my personal real estate investments, I only take on debt when I can profitably hold a rental property for the long haul. I've been trapped underwater once, and it's not a good time. The fully passive nature of Fundrise should ease that concern, but I can't shake it. Keep Fundrise to money you won't need, and keep your emergency fund somewhere liquid.

Why Should You Trust Us?

I have been writing about and reviewing investment firms and covering real estate investments for 10 years. I have personally owned single family, multi-family, real estate syndications, private partnerships, and more. I'm well versed in both the investment aspect and tax aspect of these products and services.

Our compliance team also checks and updates the facts in our reviews regularly. This update re-checked Fundrise's returns, plans, fees, liquidity and the VCX listing against Fundrise's own disclosures and recent reviews, and our crowdfunding comparison uses the same sources.

Frequently Asked Questions

Does Fundrise Have Good Returns?

Fundrise advisory clients earned 6.24% in 2025, 5.75% in 2024 and 22.99% in 2021, but lost 7.45% in 2023, according to Fundrise. That works out to about 6.5% a year from 2018 through 2025, below the stock market over the same period. Our real estate vs. stocks comparison explains the trade-off.

Can You Lose Money On Fundrise?

Yes. Fundrise clients lost 7.45% in 2023, and any real estate fund can lose value when property prices or rents fall. Your money also isn't FDIC insured, so keep short-term cash in a high-yield savings account instead.

How Long Does It Take To Withdraw From Fundrise?

Withdrawals are processed through quarterly repurchase offers, so it can take up to a quarter or longer, and requests can be partly filled if many investors want out. Fundrise paused redemptions once in 2020. Compare exits across platforms in our crowdfunding list.

Can I Choose Specific Investments On Fundrise?

Not anymore. You choose a plan (Supplemental Income, Balanced Investing or Long-Term Growth), and Fundrise picks the properties and loans. If you want to choose individual rental homes, look at Arrived.

Does Fundrise Offer An IRA?

Yes. Fundrise offers Traditional and Roth IRAs through custodian Inspira Financial, and it pays the annual custody fee if you invest at least $3,000 a year through the IRA. You can also hold Fundrise through some self-directed IRA custodians, compared in our self-directed IRA providers list.

What Kind Of Properties Does Fundrise Own?

Mostly residential and industrial real estate, plus real estate loans through the Income Fund. Holdings vary by fund, and Fundrise shows each fund's assets on its site. Our real estate investing ideas compare that mix with buying property yourself.

Who Is This For And Is It Worth It?

Fundrise is worth it for non-accredited investors who want a small, hands-off slice of private real estate, can start with as little as $10, and won't need the money for five years or more. Its history, about 6.5% a year since 2018 with one losing year, fits that role in a portfolio built around low-cost investing apps.

Skip it if you need the money within a few years, want returns that keep up with stocks, or want to choose individual properties. A robo-advisor, a high-yield savings account or Arrived fits those readers better. As always, do your own homework before committing a large amount. You might also want to check out these Fundrise alternatives.

What do you think of Fundrise? Have you ever tried it?

DISCLAIMER

The information contained herein neither constitutes an offer for nor a solicitation of interest in any securities offering; however, if an indication of interest is provided, it may be withdrawn or revoked, without obligation or commitment of any kind prior to being accepted following the qualification or effectiveness of the applicable offering document, and any offer, solicitation or sale of any securities will be made only by means of an offering circular, private placement memorandum, or prospectus. No money or other consideration is hereby being solicited, and will not be accepted without such potential investor having been provided the applicable offering document. Joining the Fundrise Platform neither constitutes an indication of interest in any offering nor involves any obligation or commitment of any kind.

The publicly filed offering circulars of the issuers sponsored by Rise Companies Corp., not all of which may be currently qualified by the Securities and Exchange Commission, may be found at www.fundrise.com/oc.