Income-restricted apartments, usually financed through the Low-Income Housing Tax Credit (LIHTC), rent some or all units below market to households earning under a set share of the area median income. Find them through HUD's LIHTC database, your state housing finance agency's property list, or local affordable-housing searches, then apply directly to each property's leasing office.
How it works
The short version, before the detail.
The Low-Income Housing Tax Credit gives developers a tax incentive to build or renovate rental housing and keep a share of the units affordable for decades. In return, rents on those units are capped and tenants must have incomes below a set limit - commonly a percentage of the area median income.
The key difference from Section 8 is how rent is set. In a LIHTC unit the rent is a fixed figure for that unit size, not a share of your personal income. That makes it affordable for moderate-low incomes but sometimes still hard for the very lowest incomes - which is why many LIHTC tenants also use a Housing Choice Voucher, and why properties generally cannot refuse voucher holders.
Each property runs its own application and waiting list through its leasing office. Some have openings immediately; some have short lists; popular ones have long lists. Because you apply to each building separately, applying to many in your area improves your chances quickly.
Properties must verify your income at move-in and usually each year. Many have minimum income requirements too, typically a multiple of the rent, although these are often waived for voucher holders.
Who usually qualifies
Factors the agency looks at. Only they make the final decision.
A household made up entirely of full-time students usually cannot live in a LIHTC unit unless an exception applies, such as single parents or students receiving certain benefits.
How to apply, step by step
Search for properties near you
Use HUD's LIHTC database by city or ZIP code, your state housing finance agency's affordable property list, and local housing search sites.
Call or visit leasing offices
Ask which unit sizes are available, current rent, income limits, minimum income rules, and whether the waiting list is open.
Apply to several properties
Each building is a separate application. Applying widely shortens the wait.
Prepare for income certification
LIHTC requires detailed income verification. Gather pay stubs, benefit letters and bank statements.
Pass screening
Expect credit, rental history and background checks. Ask what criteria they use.
Sign the lease and recertify annually
Most properties check income every year.
What to have ready
Missing one item is rarely a reason to wait - start now.
- Photo ID for adults
- Social Security numbers
- Pay stubs or benefit letters for all income
- Bank statements and asset information
- Landlord references
- Housing voucher, if you have one
- Student status information, if anyone is a student
What happens after you apply
How it compares
Similar programmes, and which one fits which need.
| Programme | What it covers | Best for |
|---|---|---|
| Income-restricted (LIHTC) apartments | Below-market rent set by the building | Faster move-in, apply direct to property |
| Housing Choice Voucher (Section 8) | Pays part of rent to a private landlord you choose | Long-term help, flexibility on where to live |
| Project-based Section 8 | Income-based rent tied to the unit | Very low incomes, apply to the building |
| Public housing | Agency-owned homes with income-based rent | Long-term help, any available unit |
Real situations
How this plays out for people in common circumstances.
Works full time, too much income for Section 8 priority
A medical assistant earns too much to be prioritised for vouchers but cannot afford market rent.
She qualifies under a 60% AMI limit at two nearby LIHTC properties and moves in within six weeks.
Voucher holder turned away elsewhere
A family with a voucher keeps being declined by market landlords.
LIHTC properties generally must accept vouchers. They apply to several and the voucher covers the gap between their income share and the set rent.
Retired couple
A couple on Social Security want a senior building.
They search for age-restricted LIHTC properties and apply to three.
Rent still too high for very low income
An applicant on SSI finds the LIHTC rent is more than half her income.
She asks about units with deeper affordability or project-based assistance in the same building, and applies for a voucher.
What people miss
True, rarely explained, and it changes the outcome.
Waits are often much shorter
LIHTC lists move faster than voucher lists in many areas.
Vouchers stack with LIHTC
A voucher can cover the gap between the set rent and your income share.
Each building is separate
Apply to many.
Income limits are maximums
Being well under the cap is fine, but check minimum income rules too.
Some units are deeply affordable
Certain units are set aside for very low incomes.
Common reasons people get stuck
Assuming it is the same as Section 8
Rent is set by the unit, not your income.
Applying to only one property
Apply widely.
Not disclosing all income
Certification is strict; mistakes can cost the tenancy.
Overlooking student rules
All-student households often cannot qualify.
Missing recertification
Annual checks are required.
How it differs by state
LIHTC is federal but administered by state housing finance agencies, which set priorities and publish property lists. Income limits are based on local area median income, so the same household may qualify in one county and not another.
Key terms explained
The words on forms and letters, in plain English.
- LIHTC
- The Low-Income Housing Tax Credit, the main federal programme financing income-restricted rental housing.
- Area median income (AMI)
- The midpoint income for a county, published by HUD, used to set income limits.
- Rent-restricted unit
- An apartment whose rent is capped under an affordability programme.
- Income certification
- Verification of household income at move-in and usually annually.
Questions people ask
What is an income-restricted apartment?
How do I find low income apartments near me?
Is LIHTC the same as Section 8?
What is the income limit for LIHTC?
Can I use a Section 8 voucher at a LIHTC property?
How long is the wait for income-restricted housing?
Do LIHTC apartments check credit?
Can students live in LIHTC housing?
What is a minimum income requirement?
Do I have to recertify my income every year?
What happens if my income goes over the limit after I move in?
Are there income-restricted senior apartments?
Do income-restricted apartments have waitlists?
What does 60% AMI mean?
Do income-restricted apartments accept people with eviction records?
Are there application fees for LIHTC apartments?
How long do rent restrictions last on LIHTC properties?
Can my rent go up in an income-restricted apartment?
Numbers to call
Free lines. We are not affiliated with any of them.
Official sources
Current figures and applications live here.