Inclusionary Housing Cost Offset Calculator

Inclusionary has cost. This calculator compares options.

Total units

Inclusionary %

Market rent per unit

Affordable rent per unit

Fee-in-lieu per unit

Cap rate %

Set-aside value cost

$4,600,000

Fee-in-lieu cost

$5,175,000

Cheaper option ($ saved)

$575,000

How the math works

Inclusionary units = total × %. Rent gap = (market − affordable) × units. Value cost = gap / cap rate. Fee-in-lieu = units × fee.

150 units × 15% = 23 inclusionary. Rent gap $253k/yr / 5.5% = $4.6M set-aside cost. Fee-in-lieu: $5.0M. Set-aside cheaper by $400k — physical build.

How to Use

Enter total units.
Enter inclusionary %.
Enter market rent per unit.
Enter affordable rent per unit.
Enter fee-in-lieu per unit.
Enter cap rate.
Read cost of each option.

Frequently Asked Questions

What is inclusionary?

Local requirement: set-aside % of units at affordable rents. Typical: 10-20%. Affordable rents at 60-100% AMI levels. In lieu: pay one-time fee instead of physical set-aside. Each with different developer economics and value impact.

Compare options?

Set-aside: ongoing rent discount (affordable vs market gap over 30+ years). Value impact: 5-15% total project NOI. Fee-in-lieu: one-time cost. Typically easier on developer if feasible. Jurisdictions push set-aside; some mandate one or other.

Financing?

LIHTC equity can fund affordable units (complex stacking). Fee-in-lieu: separate capital source required. Market-rate project economics: easier. Mixed-income developers: sophisticated capital stacks (LIHTC, TIF, state/local subsidies).