LIHTC Market Studies
S. Patz & Associates prepares Low-Income Housing Tax Credit market studies in Virginia, Maryland, Delaware, and New Hampshire. The firm is an approved market analyst for Virginia Housing, Maryland DHCD, the Delaware State Housing Authority, and New Hampshire Housing.
What a LIHTC market study is
A Low-Income Housing Tax Credit market study, usually called a LIHTC market study, tests whether a proposed affordable housing development has enough demand to lease its units at the rents and income limits it plans to use. One is required before a state agency allocates credits. Section 42(m)(1)(A)(iii) of the Internal Revenue Code makes a credit allocation conditional on a comprehensive market study of the housing needs of low-income individuals in the area to be served, conducted before the allocation is made, at the developer’s expense, and by a disinterested party who is approved by the housing credit agency.
Approved analyst status
Each agency keeps its own list of the analysts it will accept. S. Patz & Associates is an approved market analyst for Virginia Housing, Maryland DHCD, the Delaware State Housing Authority, and New Hampshire Housing. Developers applying for credits in any of those four states can engage the firm directly.
What our LIHTC market studies cover
Every assignment begins with original research. We inspect the site in person, survey comparable properties directly, and build the analysis from primary data rather than relying solely on third-party databases. Studies are prepared at the site-specific, neighborhood, citywide, regional, and statewide levels, in the same clear, full-narrative format used across our rental housing work, so agency reviewers, lenders, and syndicators can follow the reasoning behind every conclusion.
Our work reflects a thorough understanding of agency-specific guidelines, submission requirements, and reviewer expectations. We remain available after delivery to answer questions, respond to reviewer comments, and provide updated analysis as project parameters change. Property types covered include:
- LIHTC communities at 9 percent and 4 percent, including income averaging
- Age-restricted affordable housing
- Workforce housing
- Mixed-income housing
- Senior housing, including Independent Living, Assisted Living, and Memory Care
- Special Needs and Supportive Housing
- Adaptive Reuse Developments
Part of a national rental housing practice
LIHTC studies sit inside a broader rental housing practice that covers general occupancy, affordable, senior, student, and special needs housing nationwide. Our rental housing studies page sets out that fuller scope, including market-rate apartments, build-to-rent townhomes, and single-family rental communities.
The firm also prepares appraisals that comply with housing finance agency guidelines, so a developer can source the market study and the appraisal from one firm.
Frequently asked questions
In which states does S. Patz & Associates prepare LIHTC market studies?
The firm prepares Low-Income Housing Tax Credit market studies in Virginia, Maryland, Delaware, and New Hampshire, and is an approved market analyst for Virginia Housing, Maryland DHCD, the Delaware State Housing Authority, and New Hampshire Housing. Each study is prepared to the guidelines and submission requirements of the agency reviewing it. The broader rental housing study practice operates nationwide.
What is a LIHTC market study?
It is an independent analysis that tests whether a proposed Low-Income Housing Tax Credit development has enough demand to lease its units at the planned rents and income limits. Section 42(m)(1)(A)(iii) of the Internal Revenue Code requires a comprehensive market study of the housing needs of low-income individuals in the area to be served, conducted before the credit allocation is made.
Why does the analyst have to be approved by the state agency?
Federal law requires the study to be conducted by a disinterested party who is approved by the housing credit agency making the allocation. Each agency keeps its own list of approved analysts. S. Patz & Associates is an approved market analyst for Virginia Housing, Maryland DHCD, the Delaware State Housing Authority, and New Hampshire Housing, so developers in those four states can engage the firm directly.
Do you cover both 9 percent and 4 percent deals?
Yes. The firm prepares studies for Low-Income Housing Tax Credit communities at 9 percent and 4 percent, including properties using income averaging and age-restricted affordable housing. Studies are prepared at the site-specific, neighborhood, citywide, regional, and statewide levels, depending on what the assignment and the agency application require.
How does a LIHTC market study differ from an appraisal?
A market study tests demand for the proposed units and supports the credit application. An appraisal states an opinion of value for a lender or an agency. S. Patz & Associates prepares both, including appraisals that comply with housing finance agency guidelines and appraisals for HUD MAP, Fannie Mae, Freddie Mac, and USDA assignments.