Commercial investors will get more flexibility and save money on small-ticket transactions now that federal regulators have increased the threshold requiring an independent third-party appraisal.

In the first adjustment since 1994, regulators raised the minimum threshold from $250,000 to $500,000, an increase that’s $100,000 higher than the original proposal in July 2017.

The review approved by the Federal Reserve, the Office of the Comptroller of the Currency and the FDIC is part of the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) implementation. Bankers in rural areas sought the changes, citing a scarcity of appraisers to handle such transactions, FDIC Chairman Martin Gruenberg announced last year when launching the review. The agencies concluded that a higher threshold of $500,000 would not pose a threat to lenders’ financial soundness.

“There was a little bit of concern that this higher appraisal (threshold) would create higher risks,” said Justin Bakst, director of capital market analytics for CoStar Group in Boston. “There’s been a few folks concerned about putting in this regulation at a time when we’re concerned about real estate valuations. Given the price growth we’ve seen, those concerns are a bit overblown.”

The rules which took effect April 9 apply to commercial properties and multifamily properties with five or more units. CoStar estimates the exemption will affect more than nearly 2,400 properties in both Massachusetts and Connecticut, with the largest impact in Worcester and Hartford counties.

Properties exempt from the rule are only required to obtain an evaluation of collateral for the transaction, potentially saving over $600 million in appraisal costs, Bakst said.

Construction loans for multifamily properties with four or fewer units will still be subject to the $250,000 threshold.