What is income restriction (LIHTC)?

The Low-Income Housing Tax Credit (LIHTC) program ties unit affordability to income thresholds set as percentages of area median income (AMI) in the San Antonio metropolitan area. Eligible residents typically must earn 50%, 60%, or 80% of AMI, depending on the specific project's tax credit allocation. These income caps ensure that rents remain affordable and that federal subsidies reach households most in need of stable housing.

In San Antonio, AMI is established annually by HUD and serves as the benchmark for all LIHTC developments in the region. A household earning 60% AMI, for example, has access to units where rent is capped relative to that income level, protecting against rent burden. Owners of LIHTC properties must verify household income at move-in and periodically throughout tenancy to maintain compliance and retain their tax credit allocation.

Income restrictions typically remain in place for 15 to 40 years, depending on the property's financing structure and credit terms. Prospective residents must meet the designated income limit to qualify, though restrictions do not prevent households from exceeding the limit after lease signing due to wage increases. These guardrails are central to the tax credit's mission of providing stable, below-market housing. Many LIHTC providers across San Antonio operate under these income-based rules.