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LIHTC Apartments Explained: Using HUD's Database to Find Tax Credit Rentals
What Low-Income Housing Tax Credit properties are, how their rents and income limits work, and how to use HUD User's LIHTC database and other tools to find tax credit apartments near you.
A large share of the affordable apartments built in the United States in recent decades were financed with Low-Income Housing Tax Credits, often shortened to LIHTC. These properties are privately owned, but in exchange for tax benefits their owners agree to keep many units affordable to lower-income renters. HUD keeps a public database of these properties on its HUD User research site. This guide explains how tax credit housing works and how to use that data in your search.
What LIHTC is
The Low-Income Housing Tax Credit was created by the Tax Reform Act of 1986. State and local housing finance agencies award the credits to developers, who use them to help pay for building, buying or renovating rental housing aimed at lower-income households. HUD describes it as one of the most important resources for creating affordable housing in the country. The state agencies, not HUD, oversee whether properties follow the program's rules.
How rents and income limits work
Tax credit housing works differently from Section 8 and public housing:
- Income limits. Households in designated units must be under set income limits, often expressed as a percentage of area median income. HUD publishes separate income limits for these properties.
- Rent caps. Rents for designated units are capped at a set amount for the unit, so your rent usually does not rise or fall with your own income the way it would with a voucher.
- Vouchers. HUD's tenant guidance notes that LIHTC properties are required to accept Housing Choice Vouchers as a source of payment, which can make them a useful option if you already have a voucher.
Using HUD's LIHTC database
- Open the LIHTC database on HUD User.
- Choose one state if you want to narrow your search to a city or group of cities, or several states for a wider view.
- Select the details you want, such as property name, address, number of units and whether the property targets families, older adults or people with disabilities.
- Run the search and view the results on screen or download them as a spreadsheet.
- Look up each property's management and contact them about vacancies and how to apply.
The database is built for research, so it is detailed but not designed like a rental website. It is updated about once a year and lags behind new construction, so the newest properties may be missing.
Other ways to find tax credit apartments
HUD's Resource Locator map can also show tax credit properties near a ZIP code. Many state housing finance agencies publish their own searchable lists of tax credit apartments, and HUD User links to a directory of those agencies. Your local 211 service may also know of nearby properties.
Applying
You apply directly to the property's management office. Expect a rental application, income verification and standard screening, and possibly an application fee. Ask whether there is a waiting list, which income limits apply to your household size and whether any units have additional rental assistance. A tax credit unit can still be a stretch on a very low income, so compare the rent to your budget before applying.
Frequently asked questions
Is LIHTC housing the same as Section 8?
No. LIHTC properties are privately owned buildings with income limits and capped rents. Section 8 vouchers are rental assistance that can be used at many properties, including LIHTC ones.
Will my rent at a tax credit property be 30 percent of my income?
Not usually. Tax credit rents are generally capped for each unit, so the rent is set by the property's rules unless you also have a voucher or other assistance.
Does the LIHTC database show vacancies?
No. It lists properties and their characteristics. Contact each property's management to ask about openings and waiting lists.
Sources
Disclaimer: This guide is general information only and may not fit your situation or country. Rules, prices and requirements change, so check the details with the official source or a qualified professional before you act. Read our full disclaimer.