# LIHTC Recertification: What Happens When Income Rises | Income Restricted Apartments

> Annual recertification, the 140% over-income rule, the next-available-unit rule, and what happens to your rent in a LIHTC apartment.

URL: https://incomerestrictedapartments.com/guide/lihtc-income-recertification-when-income-rises/
Last-Modified: 2026-07-06

![LIHTC tenant reading a recertification notice at a kitchen table](/images/misc/lihtc-tenant-reading-recertification-notice-at-kit.webp)

## What Recertification Is

Once a year, LIHTC compliance offices re-verify your income, household composition, and any relevant deductions. You provide current pay stubs, benefit letters, and/or self-employment documentation. They calculate your annualized income and compare it to the current tier limit.

Most tenants sail through recertification with no change to their tenancy or rent.

## The Three Common Outcomes

**1\. Income still under the tier limit.** No change. Same unit, same rent.

**2\. Income above the tier limit but under 140%.** You keep your unit. LIHTC rent is capped by tier, so it doesn’t automatically rise. The property remains compliant.

**3\. Income above 140% of the tier limit.** The next-available-unit rule applies: the property must rent the next comparable vacancy to a new income-qualified household. You typically keep your unit. Whether your rent can rise toward market depends on specific policy.

## Why the 140% Rule Exists

It’s a compliance rule under IRS Section 42. The property has to maintain a target share of units at the applicable AMI tiers. If existing tenants’ incomes rise substantially, the property makes up for it by placing new lower-income households in the next vacancies.

![Recertification outcomes including the 140% rule](/images/misc/recertification-outcomes-including-140-percent-rul.webp)

## What You Bring to Recertification

-   Current pay stubs (last 2-3 months) for each working adult
-   Benefit award letters (SSI, SSDI, VA, pension)
-   Tax returns if self-employed
-   Bank statements (if self-employed)
-   Any change-of-composition documentation

## Interim Recertification

If your income drops significantly mid-year, request an interim recertification. LIHTC rent is tier-capped either way, so it doesn’t drop, but it protects your tier eligibility.

## Household Changes

Adding or removing household members triggers a recertification-style review. Bring updated documentation.

## Related Reading

-   What Happens When Your Income Changes Mid-Lease
    
    [/guide/what-happens-when-your-income-changes-mid-lease/ →](/guide/what-happens-when-your-income-changes-mid-lease/)
    
-   LIHTC Hub
    
    [/lihtc-apartments/ →](/lihtc-apartments/)
    

Start the free intake

[/contact/ →](/contact/)

.

## Frequently Asked Questions

What is the 140% rule in LIHTC? +

If your income rises above 140% of the applicable AMI limit for your tier at recertification, the next-available-unit rule may apply: the next comparable vacancy at the property must be rented to a new income-qualified household. You typically keep your unit.

Will my rent jump if I earn more? +

LIHTC rent is capped by tier, so a raise doesn't automatically raise your rent. Some communities can raise over-income tenants toward market rent under specific rules; policy varies by property.

How often is income recertified? +

Annually, on or near your lease anniversary. Some situations trigger interim recertification (household composition change, significant income shift).

## Related Guides

### How LIHTC Rent and AMI Limits Work (30/50/60/80%)

How 30/50/60/80% set-asides work, why a property mixes tiers, and a worked rent example for Texas LIHTC apartments.

[How LIHTC Rent and AMI Limits Work (30/50/60/80%) →](/guide/how-lihtc-rent-and-ami-limits-work/)

### LIHTC Screening: Credit, Background, and Rental History Rules

LIHTC apartments still screen beyond income. How credit minimums, background, and eviction policies vary, and how pre-screening saves fees.

[LIHTC Screening: Credit, Background, and Rental History Rules →](/guide/lihtc-screening-credit-background-rental-history/)

### LIHTC Utility Allowance & Maximum Allowable Rent

How the utility allowance works, max allowable rent by tier, what's included, and how to estimate your real monthly cost.

[LIHTC Utility Allowance & Maximum Allowable Rent →](/guide/lihtc-utility-allowance-maximum-allowable-rent/)

### LIHTC vs. Section 8 vs. Public Housing

Compare LIHTC, Section 8, and public housing side by side, who owns, how rent is set, how to apply, and which to try first.

[LIHTC vs. Section 8 vs. Public Housing →](/guide/lihtc-vs-section-8-vs-public-housing/)

![](/images/misc/texas-income-restricted-apartment-community-family.webp)

Free · No Application Fees Wasted

## Want a Match, Not Just Info?

Start the free 5-minute intake. Licensed Texas team, matches within 24-48 hours, application fee rebate on approval.

See If I Qualify

[/contact/ →](/contact/)

 

Back to LIHTC Apartments

[/lihtc-apartments/ →](/lihtc-apartments/)