Texas tax credit apartments: how LIHTC income limits, rent and utilities work

What a tax credit apartment is

TDHCA’s tax credit overview describes privately run housing with income and rent limits set by the program. In Texas, TDHCA runs the federal Low-Income Housing Tax Credit (LIHTC), which it calls the Housing Tax Credit program.

A restricted rent isn’t a personal subsidy, and LIHTC on its own doesn’t set your rent based on what you earn. Some communities have other help on top, such as a voucher or assistance tied to the unit. Ask if any of it applies to the unit you’re offered.

Not every unit in a building has the same rules. TDHCA’s tenant handout says the property’s agreement sets how many units are leased at each income and rent limit. Two units with the same floor plan can carry different limits.

Three numbers to keep separate

• Household income limit: the most a household of your size can earn and still qualify for the program.
• Maximum program rent: the cap on the unit’s rent, counting utilities and charges the way the program requires.
• Actual quote: what management plans to charge you for the unit, plus any extra costs it lists.

We’ll take them one at a time.

How the income limit works

Income limits change with household size. The standard figures come from HUD’s MTSP dataset, and each unit has a designation, such as 50% or 60%. Ask management what income table and household rules apply to the exact unit.

For the full walkthrough on picking the right year, county, table and household size row, see how to qualify for an income restricted apartment. Our published income comparison gives you a starting point for five Texas counties.

How the rent limit works

TDHCA’s tenant handout says rent limits depend on the unit’s bedroom count. They aren’t based on your household’s own income. So a lower income doesn’t lower a tax credit rent on its own.

Without rental assistance, a rent restricted apartment can still cost more than you can pay. That’s true for some households earning far below the limit. Ask if any assistance comes with the unit and, if so, how to apply for it. If an ad says “income based,” don’t assume your rent is figured from your own income.

TDHCA’s limit page and tenant handouts are a better starting point than multiplying your own income by 30%. Ask management for the unit designation, bedroom count, the rent table that applies and the utility allowance. Our standard income calculator doesn’t work out your maximum rent.

How utility allowances fit into your rent

The program’s rent cap counts both rent and the utilities you pay. The utility allowance is the program’s estimate of those utility costs. TDHCA’s handout describes it as an estimate for an energy conservative household. It doesn’t include cable, phone or internet. The federal rules for setting allowances are in Treasury Regulation 1.42-10, and TDHCA’s 2026 compliance training covers how they work in restricted rent math.

Ask management which allowance fits your unit size and utility setup, and when it took effect. Then ask which services you pay for yourself.

A math example, not a rent quote. Say the gross rent cap is $1,200 and the allowance for utilities the tenant pays is $100. Subtracting gives you $1,100 as a starting point, before any other charges the rules count. We made these numbers up to show what to ask. They aren’t a current limit or a guess at your utility bill.

Required fees count toward that cap too, according to the handout. So ask for a list of required and optional charges, and how each required charge counts in the program math. Keep the written explanation and quote. Calling a charge a “package,” “service” or “amenity” doesn’t settle how the law treats it.

The allowance is a program number, not a promise about your bill. Ask the utility company or the property for any usage history on the actual unit, and think about how much you use. A unit under the program cap can still be more than you can afford.

Properties financed with bonds

Some tax credit properties are financed with tax-exempt bonds. TDHCA’s bond program page says TDHCA issues these bonds to fund loans to developers, and the bond program is paired with 4% housing tax credits. TDHCA’s multifamily bond FAQs separate financing a property from rental assistance for a household.

• A bond is financing, not rent help. An apartment financed with bonds doesn’t automatically come with a subsidy based on household income.
• A development may use tax credits or other programs too. Ask which affordability rules apply to the unit you’re offered.
• The word “bond” doesn’t prove that a household over a particular LIHTC limit can qualify. Don’t assume there’s an 80% option. Ask for the unit’s actual designation and the table that applies.
• A financing award or public announcement isn’t a renter application, and it doesn’t mean construction is done. Confirm the leasing contact, where the property stands now, the fees and how documents are handled.

Income eligibility and screening are separate

You can be under the income limit and still have paperwork or screening issues to sort out. We look at each property’s screening rules before we add it to your matches. The property still makes the final call. If your income goes up and down, ask how they verify it. Don’t assume one recent bank deposit shows your yearly income. Our screening guide covers report errors and application fees.

Questions to ask about an ad or a unit

1. Is this exact unit income restricted or market rate? If it’s restricted, at what designation?
2. What income table, household rules and occupancy rules apply?
3. What’s the rent cap for this bedroom count, and what utility allowance is used?
4. What’s the rent, which utilities do I pay, and what are all the required charges?
5. Does the price assume I have a voucher or a subsidy tied to the unit?
6. What screening rules apply?
7. Am I applying for a unit available now, or for a waiting list?

Write down the real numbers for each unit

For each unit, write down the base rent, the utilities you pay and the required monthly charges. Add any optional charges you pick, the deposit, application costs and the total due before you get keys. If you don’t know an amount, write “unknown.” If a quote leaves out a required charge, ask management why.

Compare the total monthly cost and the cash you need to move in, not the word “affordable” in an ad. Check TDHCA’s resources for the property and ask management which limit applies. If the math doesn’t add up, ask management to walk you through it. For a question about the program itself, use TDHCA’s official contact route.

Save two or three good addresses in the property finder, then check each one directly. If you’re over one income limit, our qualifying guide shows how to keep searching. For a shorter overview, see tax credit apartments in Texas.