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2026 Multifamily Tax Subsidy Projects Income Limits Have Been Released!
The U.S. Department of Housing and Urban Development (HUD) has released the 2026 income limits for tax credit/bond programs. The 2026 MTSP limits went into effect on May 1, 2026. The new limits must be implemented within 45 days for LIHTC properties or by June 15, 2026.
Projects that are receiving an allocation of credits or will be placed in service within the 45-day period will be able to select the most favorable 2025 or 2026 limits with which to start. For allocations during the timeframe, the limits selected will affect the gross rent floor. For projects that will be placed in service in the 45-day period, it will affect the income and rent limits that the project will lease up with and “hold harmless” to in 2026, if necessary.
Importantly, HOME, CDBG, NSP, and NHTF programs are NOT covered by these limits. These limits should be published by HUD Community Planning and Development (CPD) in the next couple of months.
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