What is an LIHTC property?

LIHTC stands for Low-Income Housing Tax Credit, a federal program that allocates tax credits to developers who build or rehabilitate rental housing for low-income households. Rather than direct grants, the program works by allowing investors to claim tax credits against their federal income taxes, which brings down the cost of development and lets owners keep rents lower than market rate.

Properties receiving LIHTC funding must follow strict income restrictions. Residents typically must earn no more than 50 to 60 percent of the area median income for Tarrant or Dallas County, depending on the specific property's credit allocation. This means a household seeking a one-bedroom unit would generally need to fall within a defined income bracket, verified through documentation at lease signing.

Once a property receives LIHTC funding, it must remain affordable for a compliance period, usually 30 years or longer. During this time, rents are set below market rates and cannot increase beyond limits set by the program. This structure ensures stable, affordable housing for working families, seniors, and other low-income residents across the Dallas-Fort Worth area.

If you are looking for LIHTC properties in Greater Dallas, many affordable apartment providers participate in this program and can explain specific income limits and lease terms.