AHTCC Releases Report on How LIHTC Reduces Rent Burdens

A recent report by the Affordable Housing Tax Credit Coalition (AHTCC) highlights the substantial cost savings that LIHTC-financed sites provide to low-income tenants. By quantifying the rent savings provided to tenants, the report emphasizes the value of the LIHTC program in addressing the nation’s affordable housing crisis. This data strengthens the case for continued federal and state support of LIHTC initiatives, especially as Congress approaches major tax legislation debates in 2025. The report also serves as a critical advocacy tool, showcasing the program’s ability to meet pressing housing needs while supporting economic stability. By reducing housing costs, which drove over two-thirds of core inflation in 2023, the report shows how the LIHTC program can be a critical tool in controlling inflation.

The LIHTC program has been instrumental in expanding the supply of affordable housing. It has supported the development or preservation of over 3.85 million rental homes, serving nearly 9 million households. And beyond its impact on tenants, the program has significantly contributed to economic growth, creating over 6.3 million jobs and generating $250 billion in tax revenue and $716 billion in wages and income.

According to the report, LIHTC units offer rents that are, on average, 38 percent lower than market-rate apartments in 80 U.S. metropolitan areas, amounting to a typical monthly savings of $653 and an annual savings of $7,800 per household. In high-cost cities like Los Angeles, Miami, and Phoenix, LIHTC residents see savings exceeding 50 percent compared to market-rate rents, with San Francisco tenants seeing monthly savings as high as $1,686. Even in mid-cost cities such as Atlanta and Boston, LIHTC sites consistently offer significant cost advantages, ranging between 30 percent and 50 percent. These savings directly improve economic security and stability for low-income families, reducing their vulnerability to financial strain.