Tax Credit Housing FAQ

The federal low-income housing tax credit program has been successful since 1987 in providing low-income tenants with decent apartments at an affordable rent. If you're looking for an apartment at a tax credit property, there are certain things you should know before you apply.

Here are answers to commonly asked questions about the federal low-income housing tax credit program. Do you have a question that isn't addressed here? Please ask.

Q: What's the tax credit program?
A: The tax credit program, also known as the "federal low-income housing tax credit program" or simply LIHTC, is a popular affordable housing program... Read more

Q: Is the rent based on my income?
A: No. Unlike other housing programs, tax credit rent is based on the average income in your county or other local area... Read more

Q: How exactly is my rent calculated?
A: The maximum rent you can be required to pay for a low-income unit in a tax credit property is 30% of a percentage... Read more

Q: Does the number of people in my household affect eligibility?
A: Yes. The number of people in your household affects whether you can qualify for a low-income unit at a tax credit property... Read more

Q: Will I need to sign a special lease?
A: No. The tax credit program doesn't require landlords to have tenants sign a special lease... Read more

Q: Can I rent on a month-to-month basis?
A: When you first sign the lease for an apartment at a tax credit property, it must be for a term of at least... Read more

Q: Will there be market-rate tenants in the building?
A: There may be. Many tax credit buildings include... Read more

Q: If there are market-rate tenants, will I stand out as low-income?
A: You shouldn't. Landlords are required not to segregate market-rate... Read more

Q: Is my income determined based on what I've made in the past year?
A: No. It's determined by looking forward and "annualizing" your income for the next year. For example... Read more

Q: If I earn too much income for a tax credit property, am I ineligible for others?
A: Not necessarily. Although every tax credit property must follow the same rules to determine income eligibility, you may earn too much... Read more

Q: Can I get evicted if my income goes way up after I move in?
A: You shouldn't have to worry about getting evicted for going over income. If your income rises to as high as 140% of area median gross income (AMGI), there's no problem... Read more

Q: Do I need to get recertified each time my income changes?
A: Fortunately, no. The tax credit program doesn't have "interim recertifications," which means if you switch jobs, get a raise... Read more

Q: Can I live at a tax credit property if I'm a student?
A: The general rule is that if everyone in your household is a full-time student, then you can't rent at a tax credit property... Read more

Q: Must tax credit properties comply with discrimination laws?
A: Yes. Tax credit properties are subject to the same fair housing laws as conventional properties... Read more