Affordable Housing Set-Aside Calculator

Set-aside compliance required for tax credit, bond, and inclusionary zoning programs.

Total units

Set-aside requirement %

Market rate rent

AMI restricted rent

Annual rent impact

$316,800

Affordable units

Monthly impact

$26,400

How the math works

Affordable = ceil(total × set-aside %). Impact = units × (market − restricted) × 12.

120 × 20% = 24 units × ($2,200 − $1,100) = $26,400/mo × 12 = $316,800/yr impact.

How to Use

Enter total units.
Enter set-aside requirement %.
Enter market rate rent.
Enter ami restricted rent.
Read annual rent impact.

Frequently Asked Questions

Set-aside requirements?

LIHTC: 20-50 (20% of units at 50% AMI) or 40-60 (40% at 60% AMI). Income averaging: average <=60% AMI across all units. Tax-exempt bonds: 20-50 or 40-60 minimum. Inclusionary zoning: city-specific (NYC 25-30%, Boston 13-20%, SF 12-25%). State HFA programs: vary widely. Pet of HOA: rent restrictions tied to compliance period (15+15 LIHTC). Initial qualification + annual re-certification required for all set-aside units. Failure to maintain: recapture of credits + tax penalties.

How does this asset class compare to traditional CRE?

Specialty assets (self-storage, RV parks, MHP, marinas, cold storage, data centers, parking, car wash, QSR/c-store, billboards, cell towers) typically offer higher cap rates than office/retail but with more operational complexity. They reward specialized operators with deep market knowledge. Lender pool is narrower, capital costs sometimes 50–150 bps higher, but downside resilience often better.

Capex and operational considerations?

Specialty assets often have heavier operational burden than passive triple-net retail. Self-storage, RV, MHP: tenant turn, security, basic upkeep. Marinas, parking, car wash: equipment-heavy with replacement reserves. Cold storage, data center: utilities are major cost. Billboards, cell towers: minimal opex, near-passive. Match management capacity to asset operational intensity.

Exit strategy?

Specialty asset cap rates have compressed significantly over last cycle but volatility is real. Buyers: REITs, private equity rollups, regional operators, 1031 buyers. Strong NOI history, environmental clarity (especially for car wash, gas station), and lease structure (for billboards, cell towers) drive valuation. Plan exit 24+ months in advance for best execution.