Episode 112: HUD's 2023 LIHTC Tenant Data Shows Record Low Incomes

HUD's newly released LIHTC Tenant Tables for 2023 reveal that 57.2% of LIHTC residents earn 30% or less of area median gross income — the highest share of extremely low-income tenants ever recorded in the dataset. With a national median tenant income of just $18,600 and nearly half of all residents receiving rental assistance, the data paints a clear picture of who the program is actually serving and raises urgent questions for investors, developers, and policymakers about income targeting, layered subsidy, and underwriting assumptions. Key Takeaways: 57.2% of LIHTC residents are classified as extremely low-income (≤30% AMI) — the highest share ever recorded in this dataset. Only 6.2% of residents earn more than 60% AMI, meaning the program is heavily concentrated well below its statutory eligibility ceiling. 48.3% of LIHTC residents received monthly rental assistance in 2023 — the highest share since HUD began tracking this figure in 2015. The national median LIHTC tenant income was $18,600; nearly 20% of households reported annual income of $10,000 or less. The growing share of assisted tenants signals deepening interdependence between the LIHTC program and the Housing Choice Voucher system. This data strengthens the policy case for extremely low-income set-asides and deeper income targeting in state QAPs. Developers and underwriters should reassess rent collection risk assumptions given the declining income profile of the LIHTC tenant population. The 2023 Tenant Tables arrive at a moment when state housing finance agencies are refining their qualified allocation plans and Congress is debating the future of both the LIHTC program and the voucher system. The convergence of these policy tracks matters: if nearly half of LIHTC tenants depend on rental assistance to afford a tax credit unit, program design decisions made in Washington and in state capitals are more tightly coupled than ever. Stakeholders across the capital stack should be using this data now — in QAP comment periods, in advocacy, and in deal structuring. Subscribe to The Spring Street Brief for daily updates on affordable housing in America.