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 over the next 1-2 years. 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 estimate purchases with automatic updates. You will receive an estimate within 1 business day of purchase and then additional estimates sent to the same email address if and when available data changes. Novogradac revises estimates, on average, four times from when ACS data is released, to when HUD releases their limits, however, we cannot guarantee how many times available data will change. With the subscription we will send estimate updates automatically as many or as few times as the available data changes. If you would like to purchase a point in time estimate based on the best data available as of the date of ordering without automatic updates visit our Novogradac Rent and Income Limit Estimator © page.

If you are interested in purchasing rent and income limit estimates from us, please review the lists of available areas linked 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 limits with automatic updates is $1,000 per year per area requested. Once payment has been confirmed, you will receive an email with your purchases within one business day and then updates as they are available up until HUD releases actual limits.  

Bulk Ordering

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.

Available Estimates

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.

Limitations

2023

In accordance with HUD's Statement on FY 2023 Median Family Income Estimate and Income Limit released on December 2, 2022, our 2023 estimates are calculated using 2021 ACS median income. If HUD chooses an alternative calculation, we will notify users by email. If a user has purchased an estimate subscription and we are able to calculate the alternative method, we will provide estimate updates reflecting that change for users that did not purchase a subscription an additional estimate will need to be purchased to receive the revised estimates.

As of February 15, 2023, no additional updates are anticipated for 2023 estimates and therefore the subscription option is no longer available for 2023 estimates. To purchase a 2024 subscription, a point in time purchase for 2023 should be made in conjunction with a 2024 subscription. Please contact [email protected] prior to placing an order for checkout instructions.

2024

The 2024 limit calculation was not addressed in Statement on FY 2023 Median Family Income Estimate and Income Limit released on December 2, 2022 and our current estimates are calculated using standard HUD methodology. If HUD chooses an alternative calculation, we will notify users by email. If a user has purchased an estimate subscription and we are able to calculate the alternative method, we will provide estimate updates reflecting that change 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.

Other Limitations

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.

Note

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.