Lolo Vista Apartments

About This Building

Rent Calculation in the Tax Credit Program: - Determining Maximum Rent - Calculating Rent Based on Number of Bedrooms - Consideration of Occupancy and Utility Allowance The tax credit program, also known as LIHTC, is a widely-recognized affordable housing initiative established in 1987. Unlike other housing programs overseen by HUD, this program is administered by the IRS in collaboration with state housing finance agencies throughout the country. Determining the maximum rent for a low-income unit in a tax credit property is based on a percentage (usually 50% or 60%) of the area median gross income (AMGI). The rent calculation is influenced primarily by the number of bedrooms in the apartment, rather than the actual number of occupants. To calculate the rent, your landlord must assume an occupancy rate of 1.5 occupants per bedroom, except in the case of a studio where it is assumed to be one occupant. For instance, a two-bedroom apartment's rent would be calculated based on three occupants (1.5 x 2 bedrooms). Furthermore, the tax credit rent also includes an allowance for utilities.