Novogradac Rent and Income Limit Estimator ©
Understanding low-income housing tax credit (LIHTC) income and rent limit growth is vital. Better understanding how income limits will change in future years can enable developers, investors and lenders to better underwrite LIHTC properties.
By purchasing one or more reports created with our Novogradac Rent and Income Limit Estimator © you will have insight into how income and rent limits in that area will change. Novogradac uses recent American Community Survey data (ACS) and the same calculation methodology as HUD to estimate what income and rents will be in future years. Such reports can assist you in estimating income and rent growth rates and should be a part of every underwriting model for LIHTC properties.
A Note about Ordering
This product page is for point-in-time purchases of an estimate. The estimate you receive will be calculated using the best available data as of the date of purchase. Should assumptions or datapoints change, relevant to your area or estimate type, a new estimate will need to be purchased to receive an update. If you would like to receive automatic updates when or if assumptions or datapoints change, visit our Novogradac Rent and Income Limit Estimator © Subscription page.
If you are interested in purchasing rent and income limit estimates from us, please review the lists of available areas below to see if estimates are available for your area. Then please email your request(s) to [email protected] and you will receive a response with instructions indicating how many items to add to your cart. The fee for point in time estimate is $500 per year per area requested. Once payment has been confirmed, you will receive an email with your purchases within one business day.
Datasets including all available VLI and HERA/Hold Harmless limits (defined below) are available. For inquiries about datasets or for bulk purchases in excess of 10 areas please contact [email protected] for information.
Area Median Income (AMI) is calculated with same formula HUD uses when calculating AMI. This can be used to estimate income and rent limits that are based on AMI.
Very Low Income (VLI) is calculated with same formula and adjustments HUD uses when determining VLI. This can be used to estimate LIHTC and tax-exempt bond income and rent limits.
HERA Special (HERA)/Hold Harmless is calculated with the same formula and adjustments HUD uses when determining HERA and hold harmless estimates are calculated by using the higher of current year estimate or limits in any previous year since 2008. These limits can be used to estimate LIHTC income and rent limits for properties placed in service before 2009. For areas that qualify for HERA, HERA limits will be provided. If the area does not qualify for HERA, this option will provide VLI limits with hold harmless adjustments.
AMI should not be used for LIHTC rents. Please see this blog post for more information about the difference between AMI and VLI and the adjustments that HUD applies to AMI to arrive at VLI: What you Need to Know About Income Limits.
Our 2024 estimate calculation uses the same method and source data that HUD uses to calculate limits. HUD may choose to calculate limits using an alternative method that could cause differences between our calculated estimates and HUD's final limits. Our calculation includes CPI estimates which are subject to change over time. We are unable to determine the magnitude of the change in CPI and any change in CPI will impact income limits. HUD imposes a cap on increases for VLI. As part of the standard calculation, all limits are compared to and not allowed to exceed the calculated cap. This estimate was calculated, compared against, and potentially limited by a cap equaling twice the change in American Community Survey Median Income from 2021 to 2022. HUD may choose to calculate limits using a different cap that could change which areas are capped and by how much. The cap for limit increases could be as low as 5%. For users that did not purchase a subscription an additional estimate will need to be purchased to receive the revised estimates.
HUD Fair Market Areas (HMFAs)
For certain areas, HUD publishes limits using proprietarily determined geographies called HMFAs. While HUD does use ACS data for these calculations, the ACS data HUD uses is not publicly available. However, for many areas there are ways to approximate the median income ACS data using population weighting or by using data points from closely related geographies like Metropolitan Statistical Areas. Many estimates for HMFAs are available but the accuracy of the estimates is lower than estimates for counties, single county HMFAs, and MSAs for which data is directly published. Areas where the alternative calculation is performed are marked clearly on the available estimate list.
Novogradac & Company is not able to provide accurate estimates for all areas. Please refer to the list of available estimates for each report type. If you are interested in an area that is not on the list, please contact [email protected] to discuss in more detail what information Novogradac can provide for that area.
Purchase of any Novogradac Rent and Income Limit Estimator © reports is subject to execution of a terms and conditions document (T & C Document) linked below. If you do not agree to the T & C Document you will be unable to add the item to your cart or purchase it.
The purchase of an estimate does not constitute a consulting arrangement between Novogradac & Company LLP and the purchaser. If additional information, context, explanation, or materials are required to aid or accompany your purchase that extend beyond what is provided on our website or able to be communicated briefly in writing with our designated contact at [email protected], you will be referred to a Novogradac professional for consulting services that will be billed in accordance with a consulting agreement.
Please use this link to see if an estimate is available for your area. Please note that the data is released throughout the year. We will update this list as new areas become available.