What Renters in Low-Income Housing Tax Credit (LIHTC) Housing Need to Know

When Luis* and his wife signed a lease at an affordable housing complex in South Nashville, they thought they were finally catching a break. The building was clean, the neighbors were kind, and it was close enough for his wife to walk to her job. But a year in, the rent jumped without warning—and no one could explain why.

That’s when they learned they were living in LIHTC housing—a program that can be affordable but confusing if you don’t know your rights.

What Is LIHTC Housing?

LIHTC stands for Low-Income Housing Tax Credit. It’s a federal program run by the IRS to create affordable housing. But there’s a catch: rent in LIHTC units is not based on your income—it’s based on the average income for your area. This means:

Your rent can go up, even if your income goes down.

If area incomes rise, your rent might increase too—often twice a year. Even so, LIHTC landlords must follow strict rules to protect tenants.

When Can My Rent Change?

Most LIHTC leases include “escalation clauses,” which means:

• Your rent can increase if the average area income increases.

• If you lose your job or benefits, your rent probably won’t go down—but you should still report the change to your manager.

• Some buildings also offer other subsidies or programs. You won’t know what’s available unless you ask.

Can I Be Evicted From LIHTC Housing?

Yes—but only for good cause. This includes:

• Not paying rent

• Serious violations of your lease

• Criminal activity

If you’re upholding your lease, your landlord should renew it each year. Remember, they can’t evict you just because they don’t want to renew your lease. That’s not allowed in LIHTC housing.

You Still Have Legal Protections

Even if you fall behind on rent, your landlord cannot:

• Change your locks,

• Shut off your electricity or water,

• Put your things on the street without a court order.

  
  

Only a judge can order an eviction—and if you live in LIHTC housing in Davidson County, Eviction Right to Counsel (ERTC) offers free support.

What If I Have a Section 8 Voucher?

Your LIHTC landlord cannot refuse to rent to you just because you use a voucher. That’s housing discrimination, and it’s illegal.

You Deserve Stability

Luis and his wife didn’t move out. Instead, they connected with a local housing advocate, learned about the rules of LIHTC housing, and started asking the right questions. With support, they secured a rent adjustment through a small building-level program they hadn’t even known existed.

No one should be priced out or pushed out simply because they didn’t know the fine print.

Facing eviction or rent hikes in affordable housing?

• AMAC Hotline: 615-988-6460

• Nashville Hispanic Bar Association: 615-701-7957

Want more housing help in your language?

Visit www.amactn.org/tenant-rights-nashville for free, accessible resources in 8 languages including Arabic, Kurdish, Somali, and Spanish.

*Name changed for privacy.