How are Low Income Housing Tax Credit maximum rents computed from the very low income limits?
Please consult with the state housing financing agency governing the tax credit project in question for official maximum rental rates. A list of state housing finance agencies can be found at http://lihtc.huduser.org/portal/agency_list.htm. The Low Income Housing Tax Credit program is a U.S. Treasury Department program; therefore, HUD has no official authority over setting maximum rental rates. The following table is included for informational purposes only. The imputed income limitation (as defined in 26USC Sec. 42(g)(2)) is 60 percent of the MFI. A rent may not exceed 30 percent of this imputed income limitation under 26USC Sec. 42(g)(2). Unit rents by number of bedrooms are derived from Very Low Income Limits (VLILs) for the different household sizes according to the following table: LIHTC Maximum Rent Derivation from HUD Very Low Income Limits (VLILs) Unit Size 0 Bedroom 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 50% MFI Unit Maximum Monthly Rent is 1/12 of 30% of: 1-Person VLIL (1-Pe
