Low Income Housing
Market History and
Opportunity

Investment
Strategy

Critical
Housing Needs

LIHTC:
First Ten Years

Category B and C
Properties

Affordability
Sector of the
Housing Market

Consumer Trends

Political Trends

Target Market
Critical Requirements

Active Housing
Finance Agency
Environment

Affordability Sector
of the Housing Market
By statute, the LIHTC program is designed to serve tenants whose gross annual incomes are at or below 60% of the area median income, adjusted for family size. However, in most cases, most states’ first-time homebuyer programs have higher income limits, upward of 100% of the area median (115% in the case of households of three or more persons).

These income limits are ultimately set by the laws and rules governing the use of tax-exempt private activity mortgage revenue bonds, which are used to finance the homebuyer programs, although each state may have more restrictive limits to target specific markets. This widening of the applicable income bracket should enhance the market feasibility of this plan in any given area, if necessary.