Data from Moody’s across 80 U.S. metro areas reveals average Housing Credit rents are over $650 less than market-rate, amounting to a potential annual savings of over $7,800 per household.
A new AHTCC analysis demonstrates that homes financed using the Housing Credit provide rents that are 38% lower than market-rate properties on average, saving tenants an estimated $7,800 annually—or $653 per month.
“This first-of-its-kind analysis provides insight into the substantial real-world savings for people living in homes made possible by the Housing Credit,” said AHTCC CEO Emily Cadik. “The numbers underscore that the Housing Credit does not just expand the country’s affordable housing supply, but also directly supports household well-being and economic security, which in turn stimulates the economy.”
These rent savings translate into meaningful benefits for low-income renters.
Tenants in Housing Credit homes spend significantly less on rent than market rate, allowing them to allocate more of their income toward essential needs such as food, health care, transportation, and child care. In especially high-cost areas like San Francisco, tenants save as much as $1,686 per month compared to market. The analysis underscores the program’s role in improving economic stability and well-being for families and individuals while helping to alleviate financial pressures on millions of households.
“The rent savings highlighted by the Moody’s data demonstrates the important role LIHTC plays in the housing landscape,” said Nick Luettke, Associate Economist at Moody’s. “Households renting LIHTC-funded units are better able to afford rent and engage in their local economies with their rent savings. While the level of savings varies based on the local housing environment and economy, rent saving outcomes are observable across the country.” The AHTCC analysis examined some of the nation’s most housing-constrained cities, including the following:
“The need for affordable housing in communities across the country has never been more acute and our call to action has never been more urgent,” said Ryan Sfreddo, President of the AHTCC Board of Directors and CEO of Red Stone Equity Partners. “Our findings show what we have known for some time — that the savings made available to low-income renters through the Housing Credit are significant, and demonstrate the need to expand this vital and successful public-private partnership program.”
These findings demonstrate the benefits of the Housing Credit program for low-income renters, showcasing its importance in ensuring access to quality, affordable housing and improving overall household financial security. With the nation’s housing crisis intensifying and Congress preparing for major tax legislation in 2025, these findings highlight the urgent need and opportunity to expand and strengthen the Housing Credit, the nation’s most effective tool for producing affordable housing. The full report can be accessed below.
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