How the Low-Income Housing Tax Credit Can Help You Find an Affordable Apartment

The Low-Income Housing Tax Credit (LIHTC) is not something you apply for directly like a voucher; it is a program that helps developers build or preserve affordable apartments, and you apply for units in LIHTC properties through the property’s management office, not through the IRS. Your main job as a renter is to (1) find LIHTC properties in your area, and (2) qualify under their income and screening rules.

Rules and procedures can vary by state and even by property, so always confirm details with the property manager or your state housing agency before making decisions.

Quick summary: How LIHTC housing works for tenants

• LIHTC gives tax credits to property owners in exchange for renting some apartments at restricted, affordable rents to low-income households.
• You do not get a credit on your personal tax return; the benefit to you is a lower rent compared with similar units.
• To access it, you must find LIHTC buildings and apply to the property, usually through a leasing or management office.
• You’ll typically need to show photo ID, proof of income, and proof of household size.
• There may be waitlists, minimum income requirements, and background checks just like regular rentals.
• Official touchpoints include your state housing finance agency and local housing authority or housing counseling agency for property lists and guidance.

What the Low-Income Housing Tax Credit really means for renters

For renters, LIHTC usually means apartments where rent is capped based on local “area median income” (AMI), so your rent is generally lower than market rate, but not as low as a voucher that covers a percentage of your income. LIHTC properties are often regular apartment complexes with some or all units set aside for income-qualified tenants at controlled rents.

You do not file a special IRS form or claim LIHTC on your own taxes to get these units; instead, the developer or owner uses the tax credit, and you benefit indirectly through lower rent and long-term affordability restrictions on the property.

Key terms to know:

• Low-Income Housing Tax Credit (LIHTC) — A federal tax credit given to property owners who agree to keep rents affordable for low- or moderate-income tenants for a set number of years.
• Area Median Income (AMI) — The midpoint income for a region; LIHTC rents and income limits are usually set as a percentage of AMI (for example, 60% of AMI).
• Income certification — The process where the property manager verifies your income and household details to see if you qualify for a LIHTC unit.
• Rent-restricted unit — An apartment in a LIHTC property where the maximum rent is capped by program rules, not just by the owner.

Where to go: official channels that actually handle LIHTC housing

Two main “system touchpoints” matter for you as a renter: your state housing finance agency and the individual LIHTC property management offices.

Your state’s housing finance agency (HFA) (sometimes called a state housing authority, state housing and community development department, or similar) typically administers LIHTC at the state level. To start today, search for your state’s official housing finance agency portal (look for websites ending in .gov or the official state domain), and look for sections labeled “Low-Income Housing Tax Credit,” “Affordable Rental Housing,” or “Find Affordable Units.”

From there, you can usually:

• Access lists or maps of LIHTC properties in your state.
• See basic details like address, bedroom sizes, and whether a property is currently taking applications or has a waitlist.
• Find contact information for property management offices so you can call or visit to ask about availability.

The second touchpoint is the property management or leasing office for specific LIHTC buildings. This is where you actually:

• Request applications.
• Submit documents.
• Complete income certification and leasing paperwork.

If you’re unsure where to start or feel stuck, you can also contact your local public housing authority or a HUD-approved housing counseling agency and ask if they keep affordable housing property lists that include LIHTC buildings.

What to prepare before you contact a LIHTC property

LIHTC buildings screen tenants similarly to regular apartments but with extra income verification and program paperwork. Having documents ready can reduce delays, especially if a waitlist opens suddenly and fills quickly.

Documents you’ll typically need:

• Proof of identity — such as a driver’s license, state ID, or other government-issued photo ID for all adult household members.
• Proof of income — commonly recent pay stubs (last 4–8 weeks), Social Security benefit letters, pension statements, unemployment letters, or self-employment records.
• Household status documents — often birth certificates or custody paperwork for children, marriage or divorce documents if relevant, and Social Security cards or other taxpayer identification for all household members if required by the property.

Some properties may also ask for:

• Prior year’s tax returns or W-2s, especially for self-employed workers.
• Proof of assets, such as bank statements or benefit account statements.
• Documentation of other benefits (SSI, SSDI, TANF) as part of income verification.

Because LIHTC properties must verify income carefully, they commonly require you to sign authorization forms allowing them to contact employers, benefit agencies, or banks to confirm income and assets.

Step-by-step: how to actually apply for a LIHTC unit

1. Identify LIHTC properties in your area

Your first concrete action: search for your state’s official housing finance agency portal and navigate to the section listing “LIHTC” or “affordable rental housing” properties. Use the filters (if available) to focus on cities or counties where you’re willing to live, and note down property names, addresses, and phone numbers.

What to expect next: You’ll have a list of specific buildings to contact, which is far more effective than asking general agencies for housing on the spot, since LIHTC properties are privately managed and each one controls its own application and waitlist.

2. Call or visit property management offices

Contact the leasing or management office for each LIHTC property on your list. When you call, you can say: “I’m calling to ask if you have any Low-Income Housing Tax Credit or affordable units available, and whether you’re accepting applications or have a waitlist.”

Ask clearly:

• Are you accepting new applications right now?
• Is there a waitlist, and is it open or closed?
• What are your minimum and maximum income limits for the unit sizes I need?
• How do you prefer I submit the application (in-person, by mail, or online if offered)?

What to expect next: Some properties will say the waitlist is closed; others may offer you a chance to join a list or apply immediately. If they are accepting, they’ll tell you where to pick up or download the application and what basic documents to bring.

3. Gather and organize your documents

Before filling out the application, collect your identification, income records, and household information in one folder. Make copies if you can, because properties may need to keep them.

What to expect next: Having a complete set of documents ready means when a property calls you for an interview or unit offer, you can respond quickly and avoid losing your spot because you’re still searching for paperwork.

4. Complete and submit the property’s application

Fill out the property’s application form carefully, listing all household members and all sources of income, even part-time work or irregular gig income, since the LIHTC program requires accurate income totals. Sign any release forms allowing them to verify income and background information.

What to expect next: After you submit, the property will typically log your application, assign you a date and/or number for their waitlist, and start preliminary income and background screening. Some properties send written confirmation; others may just give verbal confirmation if you ask for your position or approximate wait time.

5. Complete income certification and leasing if you’re selected

If your name comes up for a unit, the property will set an appointment for formal income certification, which may include updated pay stubs, benefit verification letters, or employer contacts, plus checks like landlord references and background/credit checks.

What to expect next: If you pass screening and your income falls within the LIHTC limits for that unit, the property will typically offer you a lease with a rent amount based on LIHTC rent restrictions, not just market rent. You’ll sign a lease like a regular tenant, and you may need to re-certify your income every year for as long as you live in a LIHTC-restricted unit.

Real-world friction to watch for

Real-world friction to watch for

A common snag is that LIHTC waitlists at popular properties are long or open for only a short time, and property websites are not always updated quickly. To work around this, call management offices directly every so often to ask about waitlist reopening dates, ask if they keep an interest list or email list, and keep a simple log of which properties you called and what they said so you can follow up without losing track.

Staying safe and getting legitimate help

Because housing involves money and personal information, be cautious about where you share your documents. Look for housing agency and property websites ending in .gov or that are clearly linked from your state housing finance agency site when getting property lists, and be wary of anyone asking for upfront “application fees” that are unusually high or payments in gift cards or money transfer apps.

You cannot apply for LIHTC units through HowToGetAssistance.org or through the IRS; applications go through individual property management companies. For extra support, you can contact:

• Your local housing authority, and ask if they have an affordable housing listing service that includes LIHTC.
• A HUD-approved housing counseling agency, and ask for rental counseling or help reviewing your documents and application.

If you’re stuck and need to call your state housing finance agency, you can say: “I’m trying to find Low-Income Housing Tax Credit apartments in my area and want to know where I can see an official list of properties and their contact information.” Once you have that list and your documents organized, you’ll be ready to contact properties directly and move forward with applications or waitlists.