6 Essential Things Every Renter and Developer Should Know About Low-Income Housing Tax Credits in 2026: Complete Program Guide

The Tax Reform Act of 1986 set up the Low-Income Housing Tax Credit, which is a federal tax incentive program that encourages private developers and investors to build or fix up affordable rental housing for families with low incomes. The program gives developers dollar-for-dollar federal income tax credits if they agree to set aside some of their rental units for families with incomes below certain levels, usually 50% or 60% of the area median income, for at least 30 years. Developers get tax credits every year for ten years. They usually sell these credits to big companies so they can get money up front for building or remodeling costs. The IRS runs the program by giving credits to states based on their population. For example, in 2025, each state will get $3.00 per person, and in 2026, that amount will go up to $3.05 because of new laws. After that, state housing finance agencies give these credits to developers through competitive processes or automatic allocation for projects that meet bond financing thresholds. HUD says that the program has paid for 3.7 million affordable housing units in 54,102 projects since 1987. This makes it the biggest source of affordable rental housing in the US. According to Novogradac's analysis of 2021 HUD tenant data, 52.2% of LIHTC households earn at or below 30% of the area median income. This means that the program helps families with very low incomes. LIHTC properties offer renters rents that are lower than the market rate and capped at 30% of the applicable AMI percentage. This means that renters can save a lot of money compared to market-rate housing. The tax credits make it possible for developers to build projects that wouldn't be able to afford affordable rent levels while still covering construction and operating costs.

There is no one national income limit for all LIHTC housing. Instead, the limits depend on where the property is located, how many people live there, and what the property's income restrictions are. Every year, HUD releases area median income numbers for every metropolitan statistical area and county in the US, taking into account the size of the household. Properties must pass one of three income tests: at least 20% of units must be set aside for households with an average income of 50% AMI or less, at least 40% of units must be set aside for households with an average income of 60% AMI or less, or at least 40% of units must be set aside for households with an average income of 60% AMI with no households with an income of 80% AMI or more. If the median income for a family of three in your area is $72,000 and you're applying for a unit that is only open to people with 60% AMI, your household income can't be more than $43,200 a year. A single person in the same area who makes 50% AMI would need to make $30,000 or less. Income comes from all sources, including wages, salaries, tips, social security benefits, disability payments, child support, alimony, unemployment compensation, pension income, investment income, and any other regular sources of money. Property managers check income by looking at recent pay stubs that cover at least one month, federal tax returns from the last one or two years, W-2 or 1099 forms, social security benefits statements, bank statements that show deposits, and letters from employers that confirm employment and salary. People who work seasonally, are self-employed, or have income that changes from month to month need to provide more documents. Every spring, HUD publishes new income limits that properties must use for new certifications and recertifications. These limits usually go into effect on April 1. You can find the income limits for your area by going to HUD's website and typing in your county and household size. Remember that income limits are the highest amounts you can make and still qualify. To qualify, you must make less than these amounts. However, some properties prefer tenants whose income is enough to comfortably pay rent, usually requiring monthly income of at least 2.5 to 3 times the monthly rent amount.

The 9% and 4% Low-Income Housing Tax Credits are two different ways for developers to get money for affordable housing. They have very different ways of giving out credits, credit amounts, financing requirements, and competitive processes. The 9% credit, also known as the 70% present value credit, gives tax credits equal to about 9% of a project's eligible basis each year for 10 years. This adds up to about 90% of the eligible costs over the credit period. These credits are only for new construction and big renovation projects that don't get certain extra federal funds. State housing finance agencies give out 9% credits in very competitive annual rounds. The amount of credits they can give out is limited by the state's population. Developers send in applications that are scored based on qualified allocation plans. These plans look at things like where the project is located in qualified census tracts, how it will help very low-income households, how experienced the development team is, and how much support the community gives. Awards go only to the projects with the best scores. The Illinois Housing Development Authority says that credit competition is very high, and many qualified projects don't get any credits because there aren't enough of them. The 4% credit, which used to be called the 30% present value credit, gives annual tax credits equal to about 4% of a project's eligible basis for 10 years, which adds up to about 40% of the project's eligible costs. According to Nixon Peabody's analysis, these credits will automatically be available to projects that finance at least 25% of their total basis with qualified private activity bonds starting in 2026. This is down from the previous 50% threshold. Allocation is pretty much automatic for projects that meet the bond threshold, but developers still have to show that their projects are possible and follow the rules. The 4% path is good for acquisition-rehabilitation projects and developments that can get private activity bond financing. Many states have limited capacity for private activity bonds, and as of April 2025, 35 states and DC are either oversubscribed or at parity for rental housing PAB use. The 2026 threshold cut from 50% to 25% lets states use their limited bond authority on more projects. Both types of credit require projects to stay affordable for at least 30 years and pass tests on income and rent. Developers can more easily combine 4% credits with other subsidies than 9% credits, which can't be combined with some federal programs. The choice between 9% and 4% depends on the project's features, the availability of financing, the state's allocation priorities, and the developer's ability to compete in 9% rounds or get bond financing for 4% automatic allocation.

Federal rules say that tenants do not have to be U.S. citizens or have a certain immigration status to get LIHTC housing. So, yes, you can apply for LIHTC housing even if you are not a U.S. citizen. When deciding if a tenant is eligible for LIHTC properties, they mainly look at their income, not their citizenship status. They check to see if your household income is below the area median income thresholds. This is different from some other federal housing programs, such as Section 8 housing choice vouchers, which only allow US citizens and certain types of immigrants with valid immigration status to apply. LIHTC doesn't require citizenship because it is a tax credit for developers instead of direct help for tenants. Property owners who get tax credits must follow income and rent rules, but they don't have to be citizens like people who get direct rental assistance from HUD. But property managers will still check your identity, income, rental history, and background, no matter what your citizenship status is. To prove your identity, you will need to show a passport, consular ID, or other acceptable documents. To prove your income, you will need to show pay stubs and tax documents. To prove your rental history, you will need to get references from previous landlords. Finally, you will need to pass criminal background checks according to property policies. Some properties might ask for more proof from applicants who don't have a Social Security number or a credit history in the US. They might ask for other proof of financial responsibility and rental payment history. The Fair Housing Act protects people from discrimination based on their national origin, which means that properties can't turn down applications just because you're not a US citizen. However, they can use the same criteria for checking income, credit history, rental history, and background checks on all applicants, no matter what their citizenship status is. You can file complaints with HUD or your state's fair housing agency if you are discriminated against because of your immigration status or national origin. Remember that even though federal LIHTC rules don't require citizenship, some state or local affordable housing programs that use LIHTC may have extra requirements for eligibility. Always check the specific requirements for the property when you apply. LIHTC housing is an important resource for immigrant families and mixed-status households that can't afford market-rate housing, especially in expensive urban markets where there aren't many affordable options. This is because there are no citizenship barriers.

The time it takes to get approved for LIHTC housing can be anywhere from a few weeks to several years in high-demand markets. This depends on how many properties are available, how many people want them, how complete your application is, and how strong your qualifications are. Once you send in a complete application, the approval process usually takes 2 to 4 weeks for the first review and decision. Property managers check your income documents, your employment and rental history, your credit and criminal records, and your references. The real problem with the timeline, though, isn't the application review; it's waiting for a unit to become available. In cities where there aren't enough affordable homes, LIHTC properties often have waitlists that last 18 to 24 months or longer, based on our experience working with applicants. When properties in these markets reach their maximum capacity, they may close their waitlists completely. This means that no new applications can be accepted until the people on the waitlist find housing. In less competitive markets or for newly built properties, units may be available right away or within a few weeks or months of applying. You can only find out how long it will take to get a specific property by calling them directly and asking about current availability and the length of the waitlist. There are a number of things that affect where you are on a waitlist. Many properties use preferences to put some applicants ahead of others. For example, local residency preferences give priority to people who already live in the community, work there, or have kids who go to school there. Displacement preferences give priority to families who have to move because of government action, natural disasters, or domestic violence. People with special needs preferences help the elderly, disabled, or homeless. Veteran preferences give priority to people who served in the military. Because of these preferences, someone who applied before you may still get called for a unit first if they meet the requirements for preference categories. Also, properties usually give priority to applicants whose household size matches the unit size. For example, a family of four will be called for a three-bedroom unit before a couple without kids. Instead of waiting for one waitlist to move, apply to several properties at once. This will increase your chances of getting housing in a reasonable amount of time. Look at homes in nearby towns or just outside of the area you want to live in. If a property contacts you, respond right away because many of them have strict deadlines and need quick responses when units become available. Make sure that all the properties you've applied to have your up-to-date contact information. If you don't, you could lose your place. Keep your income records organized so that you can quickly provide updated proof when asked. To lower the chances of missing important messages, think about asking properties to call and email you. The Lafayette Square Institute's dashboard says that the LIHTC program has 3.15 million units across 48,000 properties in the US. However, in most markets, demand is much higher than supply. The 2026 program expansion will add capacity over time, but it is unlikely that people will be able to get off the waitlist right away because new projects take 2 to 3 years to build.

After LIHTC properties have been affordable for at least 30 years, there are a number of possible outcomes that will determine whether the units stay affordable or become market-rate housing. This makes it very uncertain for long-term residents and raises policy concerns about keeping the affordable housing stock. The basic rules say that there must be a 15-year initial compliance period during which properties must strictly follow income and rent limits to avoid losing tax credits. After that, there is a 15-year extended use period. But most state housing finance agencies need longer affordability periods, usually 30 to 50 years, through extended use agreements that are recorded as deed restrictions. The Lafayette Square Institute's August 2025 LIHTC Dashboard analysis says that more than 400,000 housing units will lose their affordability restrictions in the next 10 years. These units are in areas where rents are likely to go up a lot, making them too expensive for families with low incomes. This is a sign of a coming affordability crisis, as properties built in the late 1980s and early 1990s during LIHTC's first few years are about to reach the end of their compliance periods. When affordability limits end, property owners have a few choices. They can choose to keep rents low, but market pressures often make this choice less appealing, especially in neighborhoods that are becoming more upscale where market rents are much higher than LIHTC caps. They can sell to new owners who are dedicated to keeping the price low, which are often nonprofits or mission-driven groups. Some states and cities have "right of first refusal" programs that give buyers of affordable housing priority when owners want to sell. They can ask for more LIHTC money to fix up the property and reset the affordability clock for another 30 years. The 4% credit is especially helpful for projects that aim to preserve something. If there are no rules against it, they can change to market-rate housing. This lets owners take advantage of rising property values and rental income. This choice is the most likely to hurt the ability to keep things affordable. When affordability periods end, a number of things affect the results. The condition of the property determines whether major repairs are needed, which makes new LIHTC applications appealing. The state of the neighborhood's market affects whether owners can get much higher rents by switching to market-rate, which gives them more reasons to leave affordability programs. State and local policies that protect historic buildings, such as right of first refusal laws, qualified contract provisions, and preservation funding programs, can help keep homes affordable. Tenant protections differ from state to state. In some places, tenants can get help moving or rent stabilization if their homes become market-rate. The Urban Institute's May 2025 report says that LIHTC has been very good at making more affordable housing available, but keeping it that way over time is still hard without more policy changes. Some states have started preservation programs that include funding streams just for buying and fixing up LIHTC properties that are about to expire, technical help for nonprofits that want to buy properties for preservation, better scoring in allocation plans for preservation projects, and tax increment financing or other local subsidies to help with preservation. If you rent a property that is about to lose its affordability period, pay attention to notices from property management about changes in ownership or the program's status. If conversion to market-rate seems likely, contact local tenant organizations for help and support. If you have to move, look into other affordable housing options. Keep a careful record of your tenancy and rental payment history. The 2026 LIHTC expansion will help make new affordable housing, but keeping the existing LIHTC properties in good condition needs its own set of policies and resources to stop the loss of affordable units as older properties leave the program.

Yes, LIHTC properties can turn down applications based on credit scores, credit history, or other financial indicators as part of their tenant screening process. However, they must use the same screening criteria for all applicants, no matter what their protected class status is under fair housing laws. LIHTC is very different from Section 8 housing vouchers or public housing. This is because LIHTC is a direct government rental assistance program and has stricter screening rules. LIHTC gives tax credits to private property owners who then rent out the properties. These properties must meet certain affordable housing requirements, but the owners have a lot of freedom in choosing tenants as long as they follow fair housing laws. Property owners want to know that tenants will pay their rent on time and take care of their units, so credit and rental history are important factors to consider when screening tenants. Most LIHTC properties set a minimum credit score or look at credit reports for patterns of late payments, collections, bankruptcies, foreclosures, and unpaid debts. Minimum credit scores usually fall between 500 and 600, but some properties don't have strict minimums and look at applications as a whole. Properties also look at debt-to-income ratios, which usually mean that rent can't be more than 30% to 40% of gross monthly income to make sure it's affordable. Previous rental history is very important. Evictions, landlord judgments, or unpaid rental debts are common reasons for denial. Depending on the type of crime, how recent it was, and state laws about using criminal history in housing decisions, criminal background checks may disqualify applicants. But properties can't have blanket policies that automatically disqualify all applicants with a bad credit history, because this could lead to discrimination. HUD guidance suggests that each case be looked at separately, taking into account things like the circumstances surrounding the negative history, how long it has been since the negative events, proof of rehabilitation or better financial management, and things that made the situation worse, like medical emergencies or job loss that caused temporary financial problems. Some properties use alternative credit scoring for people with thin credit files. This means they look at things like rental payment history, utility payment records, and other non-traditional credit data. If you have trouble getting credit, think about using these tips to increase your chances of getting approved. Get your credit reports from all three major bureaus and carefully check them for mistakes. If you find any, dispute them through official channels. If you can, take care of any outstanding collections or judgments. Negative items that are resolved look better than ones that are still open. Write letters explaining any negative credit events, explaining what happened, and showing that you are now financially stable. Even if rent and utility payments don't show up on credit reports, you can show proof of a good payment history with things like canceled checks or letters from your landlord. If the properties allow it, think about applying with a co-signer or guarantor who has better credit. Look for properties that don't have strict score cutoffs but instead use holistic review. Show that you can still pay rent by showing that your income is stable and that you have a steady job history. Based on our work with applicants, many families who meet the LIHTC income requirements are shocked when their applications are denied because of credit problems they didn't know were in their files or thought were too old to matter. Most properties only look at credit from the last seven years, but big things like bankruptcies stay on your record longer. If your application is turned down because of your credit history, the property must send you adverse action notices that explain why and give you your rights to get free copies of the credit reports that were used to make the decision. After that, you can work on fixing the problems that were found before you reapply. Some properties have unofficial waiting periods, like not accepting new applications for a year after a bankruptcy discharge or two years after an eviction. Knowing the rules for each property ahead of time helps you send applications to properties where you're most likely to get approved based on your credit history.

LIHTC and Section 8 are two very different ways to help people find affordable housing. They have different ways of getting money, rules for who can live there, rent subsidies, and program management that affect how families can get housing and what protections they get. LIHTC is a tax credit program that gives private developers dollar-for-dollar federal tax credits over ten years that they can sell to investors for cash up front. This encourages developers to build or fix up affordable rental housing. Properties that get LIHTC must keep their affordability limits for 30 years. For qualified units, rents can't be more than 30% of the area median income. Tenants pay their landlords the actual LIHTC rent, which is less than the market rate. They don't get rental assistance payments; instead, they get lower rents. Housing Choice Vouchers and Project-Based Rental Assistance are the two main programs that make up Section 8. Housing Choice Vouchers are a type of rental assistance that helps tenants pay their rent. Families who qualify get vouchers that cover the difference between 30% of their income and the rent charged by participating landlords, up to fair market rent limits. Families find private housing that will accept vouchers and pay about 30% of their income toward rent. The voucher covers the rest. With Project-Based Rental Assistance, HUD pays the difference to property owners for specific properties where low-income families pay 30% of their income toward rent. There are big differences in the rules for who can join each program. LIHTC doesn't require citizenship, and people can only qualify if their income is less than 50% or 60% of the area's median income, depending on the property's rules. Property owners have a lot of freedom when it comes to requiring credit checks, criminal background checks, and rental history. Section 8 vouchers are only available to US citizens and qualified immigrants. To qualify, your income must be less than 50% of the area median income, and 75% of the vouchers go to families with incomes below 30% of the area median income. Property owners can't deny applicants based on credit or background issues unless they are serious offenses. Different rent structures make it possible for tenants to pay different amounts. LIHTC rents are set based on AMI caps, which means that a family making 30% AMI pays the same rent as a family making 60% AMI if both families qualify for the same unit. Without extra help with rent, this can make LIHTC too expensive for families with very low incomes. Section 8 sets rent based on the tenant's income, so families never pay more than about 30% of their income. This makes housing more affordable for families with the lowest incomes. According to Novogradac's study, 40.2% of LIHTC residents get extra help with their rent, such as vouchers or project-based help. This shows how programs often work together to help families with very low incomes. Different problems come up with waiting lists and availability. LIHTC properties only have a few units, and in competitive markets, there may be long waitlists. However, units are physically linked to specific properties that families can visit and check out. In some cases, housing authorities have closed to new applications for years, and families have to find landlords who will accept Section 8 vouchers, which can be hard in tight rental markets. The quality and location of the property are different. LIHTC developments are affordable housing that is either built from scratch or renovated. They are usually in neighborhoods with lower incomes, but some are also in neighborhoods with people of all income levels. Section 8 vouchers let families rent any property that meets the requirements in any area where landlords accept vouchers. This gives families more options in terms of where they can live, but it could also mean that low-income families are more likely to live in areas where vouchers are most common. LIHTC gives property owners upfront tax credit financing to build affordable units with set rents and tenant income requirements. However, owners are responsible for market risk and maintenance costs. Section 8 gives landlords steady rental income backed by HUD and very little risk of tenants not paying, but it also means more rules to follow, inspections to pass, and complicated paperwork. Both programs have problems when it comes to meeting housing affordability needs. The National Low Income Housing Coalition says that the US needs 7 million more affordable units to meet demand. The LIHTC and Section 8 programs together only help a small number of families who are eligible. The 2026 LIHTC expansion will help meet demand, but there is still a lot of unmet need. Families who can't afford housing should look into both LIHTC properties and Section 8 vouchers if they can get them. This gives them more choices. A lot of families are able to combine LIHTC housing with Section 8 vouchers. They use the voucher to lower their rent payment even more than LIHTC levels, which makes housing affordable for very low-income families.

LIHTC and public housing are two different generations of federal affordable housing policy. They have different ownership structures, funding methods, tenant populations, property quality, and long-term sustainability models. Public housing is rental housing that is owned and run by the government. Local public housing authorities build and manage it with money from the US Department of Housing and Urban Development. The federal government built most public housing between the 1930s and 1970s by giving money directly to builders and giving them money to keep the buildings running. Under federal rules, public housing authorities own properties, hire staff, keep buildings in good shape, choose tenants, collect rent, and handle evictions. Since the 1980s, the program has been underfunded for a long time. This has led to properties falling apart, maintenance being put off, and long waiting lists in many cities. LIHTC, which was created in 1986 when public housing construction basically stopped, uses tax credits to get private companies to invest. Private developers own LIHTC properties, get money by selling tax credits to investors, and run buildings with income and rent limits but not as much federal oversight as public housing authorities do. HUD data shows that the program built 3.7 million units across 54,102 projects from 1987 to 2023. This is a lot more than public housing has been built in the last few decades. Different programs have different numbers of tenants. Public housing is for families with very low incomes, most of whom earn less than 30% of the area's median income and have trouble paying their rent. Rents can't be more than 30% of a tenant's income, so even families with low incomes can afford them. LIHTC properties must set aside units for families with incomes below 50% or 60% of the area median income, depending on the property's income elections. On average, these properties serve a higher-income population, but 52.2% of LIHTC households still earn 30% or less of the area median income, according to data from 2021. LIHTC rents are set based on AMI caps instead of tenant income, which makes them less affordable for families with very low incomes who don't get any extra rental help. The quality and design of the property are very different. Public housing built in the middle of the 20th century often has large, high-density developments in low-income neighborhoods. The quality of these properties can range from well-kept to very bad, with some needing major repairs or even demolition. Cabrini-Green in Chicago and Pruitt-Igoe in St. Louis are two well-known public housing projects that became symbols of concentrated poverty and urban decay. LIHTC properties built more recently follow modern design standards, have mixed-income models that combine affordable and market-rate units, are built in a variety of neighborhoods, and have better construction quality because private developers want to keep property values high. But LIHTC also focuses on neighborhoods with lower incomes in many cities, and the quality of the properties depends on the developer's ability and ongoing property management. Patterns of geographic distribution are not the same. Public housing is mostly found in older industrial cities and the centers of cities where construction happened decades ago and not much new construction has happened in the last few years. Based on population-formula allocations, LIHTC has a wider geographic reach across urban, suburban, and rural markets in all states. The ways that management and oversight are set up are very different. Public housing authorities are government agencies that have to follow a lot of rules set by the federal government, civil service rules, rules about how to buy things, rules about how tenants can get involved, and rules about how local elected officials can watch over them. This makes things more complicated for the government, but it also makes sure that tenants have rights and that people are held accountable. State housing finance agencies keep an eye on LIHTC properties to make sure they follow the rules for tax credits, but these businesses have a lot of freedom when it comes to running their businesses. Fair housing laws still apply, but tenants don't have as many procedural protections as people who live in public housing. Long-term sustainability models pose distinct challenges. Public housing is getting worse because it doesn't have enough money to keep up with the costs of running it. PHAs can't keep up with the costs of running old buildings on limited operating subsidies. HUD's HOPE VI and Choice Neighborhoods programs tore down thousands of rundown public housing units and built new ones with a mix of incomes, often with LIHTC financing. Many people who work for housing rights say that the federal government should give a lot more money to public housing for repairs and new buildings. LIHTC properties have private ownership incentives to keep property values high, but they worry about affordability ending when the 30-year restrictions end. The Lafayette Square Institute says that more than 400,000 LIHTC units are at risk of becoming too expensive to live in within ten years, so they need to be protected. Some people who support housing say that LIHTC lets private companies make money off of federal subsidies, while public housing keeps units in public ownership forever. The move from public housing to LIHTC in the 1980s was based on a bipartisan political agreement that market-based solutions were better than government ownership. This was because people believed that private management would improve property quality and efficiency, and because they wanted to mix affordable housing with people of different incomes instead of concentrating poverty in public housing projects. People are still debating whether this change made things better. LIHTC has built a lot more units than public housing has in the past few decades, and it has avoided some of the problems with concentrated poverty that public housing has had. Critics, on the other hand, say that LIHTC serves fewer low-income families than public housing, doesn't guarantee long-term affordability as well, and lets private companies make money off of public subsidies. Some supporters want to combine LIHTC financing with public housing rehabilitation, greatly expanding both programs to meet the need for affordable housing. They also want to use social housing models from other countries that mix public ownership with mixed-income tenancy.

Federal rules limit rent increases in LIHTC properties by setting a maximum rent based on the area median income. However, landlords can and do raise rents from time to time within these limits, especially when HUD publishes new income limits each year that usually raise the maximum rent allowed under the AMI formula. To understand how rent increases work in LIHTC housing, you need to know how federal rent caps, yearly updates to income limits, lease terms, state and local rent control laws, and property-specific rules all work together. Federal LIHTC rules say that the highest rent for each unit is 30% of the applicable AMI percentage for the income limit for that unit. For instance, a unit with a 60% AMI limit in an area where 60% AMI for the right size household is $36,000 can't charge more than $10,800 a year or $900 a month, which includes utilities. This is the highest amount that the law allows, not the rent that is actually charged. If market conditions or operating budgets allow, properties can charge less than the maximum amount. Every spring, HUD puts out new income limits that usually go up because of inflation and wage growth. These limits usually go into effect on April 1. When income limits go up, the maximum rents that LIHTC formulas allow also go up by the same amount. Then, depending on the terms of the lease and the notice requirements, the property can raise rents up to the new ceilings. Landlords don't have to charge the highest rents, though, and they can keep rents the same even if limits go up. Lease agreements spell out when and how landlords can raise rents. Most LIHTC properties have one-year leases with rents that stay the same for the whole lease term. Most landlords give tenants 30 to 60 days' written notice before the lease is up and any rent increase goes into effect. Some leases have specific rules about how much rent can go up at renewal. For example, they might say that rent can only go up by 3% to 5% a year. If they exist, state and local rent control or rent stabilization laws may put more limits on rent increases than the federal LIHTC rules do. Cities like New York, San Francisco, and Los Angeles have rent control laws that can stop LIHTC rent increases even when federal limits would allow bigger ones. Always find out if your property is subject to local rent control. Landlords can't raise the rent in the middle of a lease without the tenant's permission, except in very rare cases that are spelled out in the lease, like adding more people or pets that aren't allowed. Any rent increase during the lease must be agreed upon by both parties and may require a signed lease amendment. Landlords must give tenants proper notice of rent increases at least 30 days before the lease ends, according to state law and the terms of the lease. Many states require a written notice of 30 to 60 days for renewing an annual lease. Some states require longer notice for bigger percentage increases. Landlords can't raise the rent without giving proper notice. Tenants who have to pay more rent have a few choices. You can talk to the landlord about the rent, especially if you've been a good tenant who pays on time and takes care of the unit. Some landlords will keep rent increases to a minimum for good tenants so they don't have to pay for new tenants. You can find out if the proposed increase is higher than the federal LIHTC rent limits by looking up the current HUD income limits for your area and household size and then calculating 30% of the AMI percentage that applies. If the proposed rent is higher than what the federal government allows, get in touch with the state housing finance agency that is in charge of making sure the property is LIHTC-compliant. If the price rise makes your current home too expensive, you can look at other LIHTC properties. However, moving is expensive and time-consuming. If you meet the requirements, you can get help with your rent through Section 8 vouchers, but the waiting lists are usually long. If you can show that rent increases are causing you financial trouble and you have health or disability issues, you may be able to get housing assistance under the Fair Housing Act. Fannie Mae's July 2024 report says that LIHTC rents have gone up over time along with rising area median incomes. However, in most metropolitan areas, they are still much lower than market rents. LIHTC rents on the West Coast are usually 50% of market rates, which means that there are big discounts that last even when prices go up from time to time. As rents go up, affordability becomes more of a problem in Midwestern markets where the difference between LIHTC caps and market rents is smaller. For families with very low incomes, especially those making 30% of the area median income (AMI) or less and living in units limited to 60% of the AMI, rent increases after income limit changes can make it very hard for them to afford their homes because their incomes may not rise as quickly as the area median incomes. This shows how important it is to have income-based rental assistance programs like Section 8 that work with LIHTC housing to keep housing affordable for the poorest families. If you think your landlord raised your rent illegally or didn't follow LIHTC rules, you should get in touch with your state's housing finance agency's compliance division. You will need to show them your lease, the notice of the rent increase, and calculations that show the increase is more than what is allowed by federal law. If properties go over the allowed maximums, compliance agencies can look into the violations and order corrective action, which may include lowering rents. You can also talk to tenant rights groups or legal aid lawyers to find out about local protections that might apply to your case in addition to federal LIHTC rules.