LIHTC: America's Biggest Source of New Affordable Apartments
Updated · Reviewed against current HUD program rules
The Low-Income Housing Tax Credit (LIHTC) has financed over 3.7 million apartments since 1986 — more than any other affordable program. States award tax credits to developers who, in exchange, rent a share of units at below-market rates to income-qualified households for 15–30+ years. Over 55,000 such properties appear in our database.
How LIHTC rents work
Each building sets aside a percentage of units as affordable, priced for households earning 30%, 50%, 60%, or (rarely) 80% of Area Median Income. A “60% AMI” two-bedroom might rent for $1,300 in a market where identical market units ask $2,100. These are fixed maximums — they don't scale down to 30% of your personal income like a voucher would.
LIHTC vs. Section 8
LIHTC alone is not deep subsidy: a household needs enough income to afford the capped rent (typically 2–3× rent). However, many LIHTC buildings also layer project-based vouchers onto some units — residents there pay 30% of income. Our property badges flag buildings holding both subsidies (“LIHTC + PB Section 8”), which offer the deepest affordability.
Applying to a tax-credit property
Contact each property's leasing office; they screen income (you must earn within the band — not too much, and enough to pay the rent), assets, and student status. Waitlists exist here too but are usually shorter than voucher lists. Expect annual income recertifications for as long as you occupy the affordable unit.
Affordability periods
Compliance runs at least 30 years federally (15-year credit period plus extended-use), though states and land-use agreements often extend longer. Our property pages show placement-in-service year and recorded affordability term from HUD's LIHTC database where reported.