What Is LIHTC Housing?

LIHTC stands for Low-Income Housing Tax Credit. If that sounds complicated, don't worry — the simple version is this: LIHTC apartments are buildings that were built or renovated with help from the government in the form of tax credits. In exchange, the property owners agree to keep rents affordable for a certain number of years (usually 30 years or more).

The key thing to understand is that LIHTC housing is NOT the same as Section 8 vouchers or public housing. With a voucher, the government subsidizes the difference between what you pay and what the landlord gets. With LIHTC housing, the building itself has permanently reduced rents built in — everyone who lives there pays lower rent, regardless of whether they get a voucher.

This is huge because it means LIHTC apartments often have shorter waiting lists than Section 8, and you don't need a voucher to live there. You apply directly to the property management company, just like you would for any apartment.

LIHTC vs. Section 8 — Key Differences

Let's be clear about what sets these apart, because it matters for your housing strategy.

Section 8 (Housing Choice Voucher): You get a voucher that subsidizes your rent. You find a private apartment, the landlord agrees to accept the voucher, and the PHA pays the difference between the fair-market rent and your portion (usually 30% of your income). Your rent can change if your income changes.

LIHTC: The apartment itself has a reduced rent built in. The property was developed with tax credits that required the owner to keep rents low permanently. You pay the set rent for that unit. Your rent might increase yearly, but it's predetermined and capped, not tied to your income.

Both are affordable housing programs, but they work very differently. Some people prefer LIHTC because there's no PHA involvement and no recertification process. Others prefer vouchers because the subsidy moves with them if they relocate.

Understanding Income Limits for LIHTC

LIHTC buildings have income limits to determine who can live there. These limits are based on the Area Median Income (AMI) for your region. If you don't know what AMI is, think of it as the middle income for your area — half of people earn more, half earn less.

Different LIHTC properties have different income limits. Common thresholds are:

30% AMI: For extremely low-income households (the most affordable)
50% AMI: For very low-income households
60% AMI: For low-income households (most common)
80% AMI or higher: Mixed-income properties (some affordable units, some market-rate)

For example, in a mid-sized city, 60% AMI might be about $35,000 annually for an individual. A property with a 60% AMI limit will rent to you if your income is below that threshold.

Verify the Income Limit Before You Apply

Always ask what the AMI limit is for a specific property. Don't assume. Income limits vary by property, and you want to make sure you're eligible before you spend time on the application.

How to Search for LIHTC Housing

There are several excellent resources for finding LIHTC apartments. You don't need to use all of them — pick the ones that work best for your region.

Affordable Housing Online (affordablehousingonline.com)

This is one of the most comprehensive databases of LIHTC properties in the country. You can search by state, city, or zip code and filter by income limit, unit size, and amenities.

Steps to search:

Go to affordablehousingonline.com
Select your state
Search by city or zip code
Review results — each listing shows the property name, address, contact info, income limit, and opening status
Call the property to ask about availability and the application process

Pro tip: Use the "opening dates" filter to see properties that are accepting applications now, rather than those with closed lists or future availability.

State Housing Finance Agency (HFA) Websites

Every state has an agency that oversees housing finance and development. These agencies maintain lists of LIHTC properties in their state. Search "[your state] housing finance agency" to find yours. They often have searchable databases of properties.

State HFA websites sometimes have more detailed information than national databases, so it's worth checking your state's site directly.

Call 211

Dial 211 from any phone (or visit 211.org) to reach a local information and referral service. Tell them you're looking for affordable housing, and they can provide information about LIHTC properties in your area along with other housing programs. This is a free, confidential service.

Local Housing Authority or Community Action Agency

Your local Housing Authority or Community Action Agency often maintains lists of affordable housing properties. Call your city or county government office and ask for housing assistance resources.

Understanding LIHTC Waiting Lists and Application Process

When you find a LIHTC property you're interested in, the application process works like this:

Call or visit the property management office to ask about availability and application requirements
Get an application (usually available in person or by mail)
Prepare your documents (proof of income, ID, references, maybe credit history)
Submit your application according to their process (in person, by mail, or increasingly, online)
Wait for a decision (usually 2-4 weeks, though timelines vary)

Most LIHTC properties maintain waiting lists when they don't have immediate openings. The order you apply matters — your place on the list is based on your application date. Unlike Section 8, which might close and reopen a list, LIHTC properties typically keep lists open continuously.

One major advantage: if you're on a LIHTC waiting list and a unit opens, management will contact applicants in order. There's less bureaucracy than with PHAs, which can speed things up.

What Documents You'll Need

LIHTC application requirements vary by property, but generally you'll need:

Photo ID (driver's license, passport, state ID)
Proof of income (last 2 pay stubs, tax returns, Social Security benefits statement, unemployment letter)
Social Security numbers for all household members
Proof of citizenship or eligible immigration status
Bank statements or proof of assets (sometimes required)
References from previous landlords or employers
Authorization for credit and background checks

Some properties are more flexible than others. If you're concerned about a particular issue (like a gap in employment history or a past eviction), call ahead and ask about their policies. Some properties are more willing to work with applicants with challenged histories than others.

Special Considerations for Mixed-Income LIHTC Properties

Some LIHTC buildings are "mixed-income," meaning they have some affordable units (for people under the AMI limit) and some market-rate units (for anyone regardless of income). This is actually a good thing — these buildings tend to be better maintained and have more amenities because they're serving both populations.

In mixed-income buildings, you'll be applying for the affordable units specifically. Make sure you're looking at the right units when you apply. The property should be very clear about which units are income-restricted and which aren't.

What to Watch Out For

Compliance Periods Matter

LIHTC properties have mandatory "compliance periods" during which rents must stay affordable. These are typically 30 years. After that period ends, the property owner can raise rents to market rate. This is rare, but important to know. If you're in a 30-year LIHTC property that's been around for 20 years already, understand that your affordable rent might change in 10 years.

Don't give up if you're denied: LIHTC properties sometimes deny applications for credit issues, rental history, or income verification problems. Don't assume it's permanent. You can apply to other properties. Each property makes its own decisions.

Verify the income limit is what they say: Sometimes property websites have outdated information. Call directly and ask the property manager or leasing office about current income limits before investing time in an application.

Ask about lease terms: LIHTC leases are standard, but clarify the lease length, when rent can be raised, and what happens if your income goes over the limit (usually you can stay, but your rent adjusts).

Building Your LIHTC Housing Strategy

Here's a smart approach: use LIHTC housing search alongside your Section 8 application. Apply to LIHTC properties in your area while you're on the PHA waiting list. LIHTC often moves faster, so you might get housing while you're still waiting for a voucher. And if you do get a voucher later, you can move and use it elsewhere.

Apply to multiple LIHTC properties too. Don't put all your hopes on one building. Different properties have different requirements, wait times, and opening dates. Cast a wider net and increase your chances of getting approved.

Income Limits and Rent — A Real Example

Let's say you earn $28,000 per year. You're looking at two LIHTC properties:

Property A (60% AMI limit, 2-bedroom): AMI for your area is $50,000, so 60% AMI is $30,000. You qualify. Rent is $650/month.
Property B (30% AMI limit, 1-bedroom): 30% AMI is $15,000. You don't qualify (your income is too high). Don't waste time applying here.

Always check the specific income limit before applying. It's usually listed in the property information, but when in doubt, call and ask.

Next Steps

Start your LIHTC search today by visiting affordablehousingonline.com or calling 211. Make a list of properties in your area, note their income limits and contact information, and start making calls. Each conversation gets you closer to housing.

Remember: LIHTC is one tool in your housing toolkit. Use it alongside Section 8 applications, PHA waiting lists, and other resources. The more avenues you pursue, the sooner you'll find stable, affordable housing.

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