The Applicable Federal Rate (AFR) is used as the Low Income Housing Tax Credit (LIHTC) “Applicable Percentage” that determines the eligible basis of tax credit properties. The AFR is reported monthly by the Internal Revenue Service for both the 9% and 4% tax credits.

AFR’s for Section 42 tax credit properties since the year 2000 are listed below. (Please note the comments below re: legislative changes to the 9% credit.)

Date9% LIHTC*4% LIHTC
October, 20207.17%3.07%
September, 20207.15%3.07%
August, 20207.17%3.07%
July, 20207.18%3.08%
June, 20207.16%3.07%
May, 20207.20%3.08%
April, 20207.28%3.12%
March, 20207.40%3.17%
February, 20207.45%3.19%
January, 20207.43%3.18%
December, 20197.43%3.19%
November, 20197.40%3.17%
October, 20197.39%3.17%
September, 20197.46%3.20%
August, 20197.48%3.21%
July, 20197.53%3.23%
June, 20197.59%3.25%
May, 20197.59%3.25%
April, 20197.63%3.27%
March, 20197.63%3.27%
February, 20197.64%3.27%
January, 20197.70%3.30%
December, 20187.74%3.32%
November, 20187.72%3.31%
October, 20187.67%3.29%
September, 20187.68%3.29%
August, 20187.66%3.28%
July, 20187.68%3.29%
June, 20187.68%3.29%
May, 20187.65%3.28%
April, 20187.66%3.28%
March, 20187.63%3.27%
February, 20187.57%3.25%
January, 20187.55%3.24%
December, 20177.55%3.23%
November, 20177.53%3.23%
October, 20177.50%3.21%
September, 20177.52%3.22%
August, 20177.52%3.22%
July, 20177.52%3.22%
June, 20177.53%3.23%
May, 20177.55%3.24%
April, 20177.57%3.24%
March, 20177.56%3.24%
February, 20177.56%3.24%
January, 20177.54%3.23%
December, 20167.43%3.18%
November, 20167.39%3.17%
October, 20167.37%3.16%
September, 20167.36%3.15%
August, 20167.35%3.15%
July, 20167.41%3.18%
June, 20167.42%3.18%
May, 20167.42%3.18%
April, 20167.42%3.18%
March, 20167.44%3.19%
February, 20167.51%3.22%
January, 20167.51%3.22%
December, 20157.49%3.21%
November, 20157.48%3.20%
October, 20157.49%3.21%
September, 20157.51%3.22%
August, 20157.53%3.23%
July, 20157.52%3.22%
June, 20157.47%3.20%
May, 20157.44%3.19%
April, 20157.48%3.21%
March, 20157.42%3.18%
February, 20157.47%3.20%
January, 20157.51%3.22%
December, 20147.51%3.22%
November, 20147.55%3.24%
October, 20147.54%3.23%
September, 20147.56%3.24%
August, 20147.57%3.25%
July, 20147.56%3.24%
June, 20147.58%3.25%
May, 20147.60%3.26%
April, 20147.59%3.25%
March, 20147.60%3.26%
February, 20147.64%3.27%
January, 20147.60%3.26%
December, 20137.57%3.25%
November, 20137.59%3.25%
October, 20137.63%3.27%
September, 20137.57%3.24%
August, 20137.55%3.24%
July, 20137.46%3.20%
June, 20137.39%3.17%
May, 20137.41%3.18%
April, 20137.43%3.19%
March, 20137.43%3.18%
February, 20137.40%3.17%
January, 20137.36%3.16%
December, 20127.38%3.16%
November, 20127.38%3.16%
October, 20127.38%3.16%
September, 20127.35%3.15%
August, 20127.36%3.15%
July, 20127.37%3.16%
June, 20127.43%3.18%
May, 20127.48%3.21%
April, 20127.44%3.19%
March, 20127.43%3.18%
February, 20127.42%3.18%
January, 20127.44%3.19%
December, 20117.47%3.20%
November, 20117.44%3.19%
October, 20117.48%3.20%
September, 20117.60%3.26%
August, 20117.66%3.28%
July, 20117.68%3.29%
June, 20117.73%3.31%
May, 20117.77%3.33%
April, 20117.78%3.33%
March, 20117.78%3.33%
February, 20117.75%3.32%
January, 20117.67%3.29%
December, 20107.58%3.25%
November, 20107.57%3.24%
October, 20107.58%3.25%
September, 20107.65%3.28%
August, 20107.69%3.30%
July, 20107.73%3.31%
June, 20107.81%3.35%
May, 20107.85%3.36%
April, 20107.82%3.35%
March, 20107.81%3.35%
February, 20107.84%3.36%
January, 20107.76%3.32%
December, 20097.79%3.34%
November, 20097.76%3.33%
October, 20097.78%3.33%
September, 20097.84%3.36%
August, 20097.82%3.35%
July, 20097.82%3.35%
June, 20097.71%3.30%
May, 20097.67%3.29%
April, 20097.65%3.28%
March, 20097.67%3.29%
February, 20097.63%3.27%
January, 20097.53%3.23%
December, 20087.65%3.28%
November, 20087.84%3.36%
October, 20087.83%3.36%
September, 20087.87%3.37%
August, 20087.93%3.40%
July, 20087.94%3.40%
June, 20087.93%3.40%
May, 20087.89%3.38%
April, 20087.80%3.34%
March, 20087.84%3.36%
February, 20087.92%3.40%
January, 20087.93%3.40%
December, 20078.03%3.44%
November, 20078.08%3.46%
October, 20078.07%3.46%
September, 20078.15%3.49%
August, 20078.21%3.52%
July, 20078.18%3.50%
June, 20078.11%3.48%
May, 20078.11%3.47%
April, 20078.10%3.47%
March, 20078.15%3.49%
February, 20078.11%3.48%
January, 20078.08%3.46%
December, 20068.12%3.48%
November, 20068.12%3.48%
October, 20068.15%3.49%
September, 20068.19%3.51%
August, 20068.23%3.53%
July, 20068.21%3.52%
June, 20068.21%3.52%
May, 20068.15%3.49%
April, 20068.11%3.47%
March, 20068.07%3.46%
February, 20068.05%3.45%
January, 20068.07%3.46%
December, 20058.08%3.46%
November, 20058.02%3.44%
October, 20057.98%3.42%
September, 20058.01%3.43%
August, 20057.96%3.41%
July, 20057.95%3.41%
June, 20058.00%3.43%
May, 20058.06%3.45%
April, 20058.02%3.44%
March, 20057.97%3.42%
February, 20057.99%3.43%
January, 20057.99%3.42%
December, 20047.96%3.41%
November, 20047.96%3.41%
October, 20047.98%3.42%
September, 20048.03%3.44%
August, 20048.07%3.46%
July, 20048.10%3.47%
June, 20048.10%3.45%
May, 20048.10%3.39%
April, 20048.10%3.39%
March, 20048.10%3.41%
February, 20048.10%3.42%
January, 20048.10%3.42%
December, 20038.10%3.43%
November, 20038.10%3.41%
October, 20038.10%3.44%
September, 20038.10%3.42%
August, 20038.10%3.35%
July, 20038.10%3.33%
June, 20038.10%3.38%
May, 20038.10%3.40%
April, 20038.10%3.37%
March, 20038.10%3.40%
February, 20038.10%3.40%
January, 20038.10%3.41%
December, 20028.10%3.41%
November, 20028.10%3.38%
October, 20027.97%3.42%
September, 20028.04%3.45%
August, 20028.13%3.48%
July, 20028.20%3.51%
June, 20028.22%3.52%
May, 20028.27%3.54%
April, 20028.20%3.51%
March, 20028.17%3.50%
February, 20028.19%3.51%
January, 20028.16%3.50%
December, 20018.05%3.45%
November, 20018.10%3.47%
October, 20018.16%3.50%
September, 20018.21%3.52%
August, 20018.25%3.54%
July, 20018.28%3.55%
June, 20018.26%3.54%
May, 20018.19%3.51%
April, 20018.21%3.52%
March, 20018.24%3.53%
February, 20018.23%3.53%
January, 20018.33%3.57%
December, 20008.39%3.59%
November, 20008.42%3.61%
October, 20008.41%3.60%
September, 20008.44%3.62%
August, 20008.47%3.63%
July, 20008.53%3.66%
June, 20008.53%3.65%
May, 20008.48%3.63%
April, 20008.55%3.66%
March, 20008.59%3.68%
February, 20008.57%3.67%
January, 20008.48%3.64%

As a result of the Housing and Economic Recovery Act of 2008, the AFR for 9% LIHTC placed into service between July 30, 2008 and December 31, 2013 was fixed at 9%. The American Taxpayer Relief Act of 2012 (passed on January 1, 2013) extended the fixed 9% rate to low income housing tax credit allocations made prior to January 1, 2014. The Tax Increase Prevention Act of 2014 extended the 9% fixed rate to allocations made prior to January 1, 2015.

In December 2015, the US Congress voted to permanently replace the variable AFR for the 9% development credit with a fixed rate of 9%. This legislation, entitled the Protecting Americans From Tax Hikes (PATH) Act of 2015, was signed by President Obama. The variable AFR for the 4% acquisition and tax-exempt bond credits remains in place.


Affordable housing becomes easier to understand once you have learned its lexicon. For a guide to common industry terminology, click here for our Affordable Housing – LIHTC glossary.

Westmont Advisors is proud to partner with LIHTC compliance experts TheoPRO to offer development compliance services and Section 42 training programs for LIHTC professionals, including property managers, developers, asset managers, syndicators and government agencies. Training and other services are available throughout the United States. Click here to learn more.


Please do not hesitate to contact us for more information about our consulting and advisory services for real estate acquisition, asset management and tax credits, including the Section 42 Low Income Housing Tax Credit (LIHTC) and Historic Tax Credit (HTC), as well as other real estate matters. Click here to learn more about our team.

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