What is an income-restricted unit?
An income-restricted unit is a rental apartment reserved for households whose annual earnings fall below a set threshold, typically 30-80% of area median income, with eligibility verified through income documentation.
Income-restricted units are apartments set aside for households that meet specific income limits set by the property owner or a government program. Unlike market-rate rentals available to anyone, these units require applicants to earn below a defined percentage of area median income (AMI). In the Greater Dallas region, these thresholds typically range from 30% to 80% of AMI depending on the program, household size, and property.
To qualify, applicants must document their income through tax returns, W-2s, pay stubs, or other verification. This documentation protects the property owner's compliance with program requirements and ensures units reach households that genuinely need affordability.
Income-restricted units differ from voucher-based subsidized housing in a key way: the subsidy is attached to the unit itself, not the resident. This means the reduced rent is available to whoever occupies that specific apartment (if eligible), regardless of whether they hold a housing voucher. Voucher holders can use their subsidy at any property accepting the voucher program. Income-restricted units are permanent affordability tools written into the lease or property deed, whereas vouchers are portable benefits tied to individual households.
Owners may offer income-restricted units through Low Income Housing Tax Credit (LIHTC) programs, local inclusionary zoning requirements, or direct subsidy from nonprofits or government agencies. They serve as a stable source of affordable housing in growing markets like Dallas.
To find income-restricted units available in your area, explore providers offering affordable housing.