Senior LIHTC housing: age rules, income limits and how to apply
Senior LIHTC apartments are tax credit properties that limit occupancy to older adults under the Fair Housing Act's housing-for-older-persons exemption: either every resident is 62 or older, or at least 80% of occupied units have at least one resident 55 or older and the property follows HUD's rules for 55+ housing. Rent and income rules are the same as any tax credit apartment: you must be at or under the income limit, and the rent is a fixed cap for the unit, not a share of your income.
Many tax credit properties are built for seniors. They’re ordinary LIHTC apartments with one extra rule: an age requirement that federal fair housing law allows only for housing that meets specific standards.
The age rule comes from fair housing law
Under the Fair Housing Act, housing generally can’t exclude families with children. “Housing for older persons” is an exemption, defined in 42 U.S.C. 3607(b) and HUD’s rules at 24 CFR Part 100, Subpart E:
| Type | Requirement |
|---|---|
| 62 or older | All occupants are 62 or older (with limited exceptions, such as employees who perform substantial duties at the property) |
| 55 or older | At least 80% of occupied units have at least one occupant 55 or older, the property publishes and follows policies showing intent to be 55+ housing, and it verifies ages under HUD’s rules |
| State or federal program | Housing provided under a program HUD determines is designed for elderly persons |
The tax credit law allows this. LIHTC units must be for general public use, which Treasury reads consistently with HUD’s nondiscrimination rules (26 CFR 1.42-9), and the code says a project doesn’t fail that requirement solely because of occupancy restrictions or preferences favoring members of a specified group under a federal or state program or policy that supports housing for that group (IRC 42(g)(9)). Many state agencies give senior projects their own scoring or set-asides in the qualified allocation plan.
Income and rent: same as any LIHTC unit
- Income limit. Your household’s gross annual income must be at or under the limit for your household size and the unit’s level, usually 60% of area median income. Look it up on the income limits pages.
- Rent. The maximum is 30% of the income limit for the unit’s imputed household size (1 person for a studio, 1.5 for a 1-bedroom), including a utility allowance. See how LIHTC rents are set.
- Rent doesn’t depend on your income. If your income is far below the limit, the rent can be a large share of it. A Housing Choice Voucher, or a property with project-based Section 8, brings your share to about 30% of adjusted income.
Example for a retiree
Illustrative numbers only. A 1-bedroom senior LIHTC unit has a maximum gross rent of $1,125, with a $75 utility allowance, so rent is up to $1,050. A single retiree’s income:
| Source | Annual |
|---|---|
| Social Security | $22,800 |
| Pension | $6,000 |
| Required IRA withdrawal | $3,000 |
| Total gross income | $31,800 |
If the 1-person 60% limit is $42,000, she qualifies. Her housing cost ($1,125 a month, $13,500 a year) is about 42% of her income. With a voucher, she would pay about 30% of her adjusted income instead. Check your own figures with Am I eligible? and the rent calculator.
Income questions seniors ask
| Question | General answer |
|---|---|
| Does Social Security count? | Yes, the gross benefit amount, generally before Medicare premiums are deducted |
| Do pensions and annuities count? | Yes, regular payments count |
| Do savings count? | Income from assets counts; above a certain asset level, the property may count imputed income on the balance under HUD rules. Ask how the property handles assets |
| Does a home I own count? | It’s an asset; the property will ask about it, and sale proceeds may matter |
| Do medical expenses lower my income? | Not for the LIHTC income test, which uses gross income. They can matter for Section 8, where rent is based on adjusted income |
| Do I recertify every year? | Usually yes, unless the property is 100% low-income and has an IRS waiver, though many state agencies still require some annual certification |
These follow the HUD income rules (HUD Handbook 4350.3) that LIHTC properties use; each state agency and property may set its documentation requirements.
Senior LIHTC vs other senior housing
| Senior LIHTC | HUD Section 202 | Public housing for seniors | Market-rate 55+ | |
|---|---|---|---|---|
| Rent | Fixed cap for the unit | About 30% of adjusted income | About 30% of adjusted income | Market |
| Income limit | Usually 60% AMI | Very low-income (50% AMI) | HUD limits | None |
| Age | 55+ or 62+ by property | 62+ | By housing authority designation | 55+ |
| Apply at | Each property | Each property | Housing authority | Each property |
Some senior buildings combine LIHTC with Section 202 or project-based Section 8, so check each property’s description.
What senior properties can and can’t do
- They can limit occupancy by age, if they meet the housing-for-older-persons rules above, and they can offer amenities and services aimed at older residents.
- They can’t require you to be in good health, ask about disabilities beyond what fair housing law allows, or refuse a reasonable accommodation such as a live-in aide.
- They can’t refuse you because you have a Housing Choice Voucher (IRC 42(h)(6)(B)(iv)).
- They can’t evict you without good cause during the extended use period, and the tax credit rules don’t require you to move out if your income later rises.
- They may charge separately for optional services you choose, such as meals, but mandatory charges generally count toward the rent limit.
If you need services as well as housing, ask the property whether it has a service coordinator or partners with local agencies on aging. Some states also fund supportive housing units inside LIHTC properties for older adults who need more help.
How to find and apply
- Search by state on the tax credit apartments pages and look for properties described as senior or elderly.
- Call each property: ask whether it’s 55+ or 62+, its income levels, current rents and how long the waiting list is.
- Gather: photo ID and proof of age for each resident, Social Security award letter, pension statements, bank and retirement account statements.
- Apply to several properties. Waiting lists are kept by each property, not centrally.
- If you have a voucher or are on a voucher list, tell each property.
Senior properties must follow the Fair Housing Act. If you believe you’ve been treated unfairly, contact HUD at 1-800-669-9777.
Questions people ask
What age do you have to be for senior LIHTC housing?
It depends on the property. A 62+ property requires all residents to be 62 or older (with narrow exceptions such as certain employees). A 55+ property requires at least 80% of occupied units to have at least one resident 55 or older, so a younger spouse can usually live there. Ask each property which rule it uses and its own policies.
Do Social Security and retirement account withdrawals count as income?
Social Security, pensions and regular retirement distributions generally count toward gross annual income under the HUD income rules LIHTC properties follow. Assets count too: income from assets, or imputed income on larger asset balances, is included. The property's income certification will list what it needs.
Are senior LIHTC apartments assisted living?
No. They are independent apartments. Some offer service coordinators or partner with outside providers, and LIHTC rules allow supportive service fees paid by certain government or nonprofit programs to be excluded from rent, but care isn't part of the lease.
Can I use a voucher at a senior tax credit property?
Yes. LIHTC owners can't refuse an applicant because they hold a Housing Choice Voucher. You still have to meet the age rule and the income limit.