PREVIEW-Hard-hit housing market may weigh on Camden results

* What: Camden Property Trust Q1 earnings

* When: Thursday, April 30

* Company exposed to worst hit real estate markets

* Strong balance sheet, unencumbered properties positive

By Biswarup Gooptu

BANGALORE, April 28 (Reuters) - Falling rentals and rising vacancy rates are expected to weigh on Camden Property Trust's (CPT.N: Quote, Profile, Research) quarterly results, as the apartment REIT combats a skittish economy that has seen U.S. unemployment hit a 16-year high.

Job creation, seen as the No. 1 driver of demand for apartments, has plunged sharply as the unemployment rate climbed to 8.5 percent.

Investors and analysts are concerned with Camden's exposure to some of the worst-affected real estate markets in the country, such as Tampa, Las Vegas and Phoenix. Camden mostly operates luxury and middle market apartment complexes.

"Over the past couple of years, they have moved heavily into markets that are now in the forefront of the real estate downturn, and because they operate nicer properties within those markets, we believe they are more at risk than, perhaps, operators in more stable markets," Macquarie Securities' Michael Levy told Reuters.