The U.S. Department of Housing and Urban Development (HUD) today released income limits to determine eligibility for HUD-assisted programs and low-income housing tax credit (LIHTC) properties for 2023–and the figures are lower than anticipated. The cap for HUD’s very low income is 5.92%, dramatically lower than the 12% forecast by Novogradac, although in line with one of the possible caps tracked by the Income Limits Working Group. HUD calculated the 2023 cap by using the annualized change in American Community Survey (ACS) data from 2019 to 2021, resulting in more than half of all areas being capped. It’s the second straight year in which at least half of areas were capped. HUD publishes income limits for public housing, Section 8, Section 221(d)(3) and Section 236 properties. HUD also publishes Multifamily Tax Subsidy Projects (MTSP) income limits to determine eligibility for the LIHTC and tax-exempt bond properties.

A Notes from Novogradac blog post will take a deeper dive on the data and the May 23 Tax Credit Tuesday podcast will focus on the income limits result.