federalUnited StatesLow-Income Housing Tax Creditrent_limit

For units with project-based rental assistance, gross rent is the tenant portion plus the utility allowance

lihtc.rent.section8_override · v1.0.0

Where a low-income unit receives a rental subsidy under Section 8 or a comparable program and the household's contribution is limited to a percentage of income, the gross rent tested under Section 42 is the amount the household pays plus the utility allowance, not the contract rent paid by the subsidy provider.

This provision is the most common source of false positives in automated LIHTC rent testing. Encode the assistance flag at unit level, not property level: a property can have assisted and unassisted LIHTC units side by side.

Confidence: high
Effective from: 1990-01-01
Last reviewed: 2026-08-22

Citations

All sources verified within 1 day

Internal Revenue Code Section 42 - Low-income housing credit
42(g)(2)(E)
statuteSource ↗verified 1d ago
Guide for Completing Form 8823, Low-Income Housing Credit Agencies Report of Noncompliance or Building Disposition
Chapter XI, Category 11g, section F.9. Section 8 Tenants, printed p. 137
persuasive_agency_guidanceSource ↗verified 1d ago