LIHTC Applicable Fraction Calculator

Applicable fraction is the lesser of unit fraction or floor space fraction.

Total units

LIHTC units

Total floor space (sf)

LIHTC floor space (sf)

DDA/QCT 30% boost

Applicable fraction

0.76%

Unit fraction

0.80%

Floor space fraction

0.76%

How the math works

Applicable fraction = min(units fraction, floor space fraction). DDA/QCT: 130% boost.

Units 80/100 = 80%, floor 65k/85k = 76.5%. Min = 76.5%. With boost: 99.4%.

How to Use

Enter total units.
Enter lihtc units.
Enter total floor space (sf).
Enter lihtc floor space (sf).
Enter dda/qct 30% boost.
Read applicable fraction.

Frequently Asked Questions

Applicable fraction test?

Unit fraction = (low-income units / total units). Floor space fraction = (low-income unit sf / total unit sf). Applicable fraction = LESSER of the two. Used to determine qualified basis for credit. 100% LIHTC project: applicable fraction = 100%. Mixed-income projects: applicable fraction is the affordable share. Basis boost: 30% boost in DDA (Difficult Development Area) or QCT (Qualified Census Tract) — 130% of eligible basis. State-discretionary 30% boost in some states.

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.