Boise, Idaho Home Management | The Low-Income Housing Tax Credit


Boise residential management specialists can help you diversify your investment portfolio. Professionals in Boise residential management know that low-income rental housing is one of the fastest-growing sectors of the real estate market. What many solo property investors don't know is that since the Income Tax Reform Act of 1986, there have been federal tax incentives in place for owners of Idaho real estate investments to develop low-income rental housing.


As an investor working with Boise, ID residential management experts, you will find many opportunities to participate in the low-income rental housing market. It is important that both investors and Boise, ID residential management professionals know what the Low-Income Housing Tax Credit is.


As of January 2012, the federally designated low-income thresholds are $16,775, $22,695, and $28,635 per year for families of one, two, and three respectively. With news that unemployment will be high through 2016, Boise, Idaho residential management professionals are confident that low-income renters will continue to make up a high percentage of the market.


Professionals in Boise, Idaho residential management know that the majority of affordable housing today is underwritten by the Low-income Housing Tax Credit. The credit itself is commonly known as the Section 42 Credit. Almost anyone with Idaho real estate investments is able to benefit from a section 42 credit; individuals, corporations, and partnerships alike are all eligible to receive a tax break from investing in affordable housing.


The Low-income Housing Tax Credit can be confusing for a novice property investor to navigate, though. Many who choose to invest in low-income housing work with Boise, Idaho home management professionals to make sure they are utilizing the program correctly.


If you are working with a Boise, Idaho home management professional to obtain a section 42 credit, you will most likely be subject to property inspections. A professional from the Idaho Housing and Finance Association will visit your property to make sure everything is up to code. The procedure is similar to the inspections that pertain to Section 8 rentals.


The sluggish economy has yet to find its way out of the recession. As such, property investors must look for new and inventive ways to take advantage of market conditions. Expanding your investments to include low-income rental housing is a great way to diversify your portfolio and protect yourself against swings in the rental market. While we would all like to believe that we are slowly crawling our way to recovery, we are still very much in the middle of a recession. There are more people than ever in need of affordable rental housing. If you have any more questions about how you can benefit from the Low-income Housing Tax Credit, talk to an Advanced Asset Management property manager today.