Oct. 22, 2024: Rent and Income Limits Update

Two of the three major factors that determine fiscal year (FY) 2025 rent and income limits for low-income housing tax credit (LIHTC)-financed properties were recently released, giving a preview of what to expect when those limits are announced next April by the U.S. Department of Housing and Urban Development (HUD). In this week's Tax Credit Tuesday podcast, Michael Novogradac, CPA, and Novogradac partner Thomas Stagg, CPA, discuss those income limits, including what factors are involved in the calculation, what we know so far, how having a good estimate can assist developers and property managers and how HUD's projections for 2023 national median household income lined up with the data from 2023. They also discuss what's new with fair market rents, California's recently passed rent control legislation and which dates to remember between now and the release of FY 2025 income limits.