TDHCA Bond Properties Explained
TDHCA bond properties are tax-exempt-bond-financed communities with below-market rent. What bond financing means for rent and how to find them.
The Short Version
TDHCA (Texas Department of Housing and Community Affairs) issues tax-exempt bonds that developers use to finance apartment construction. In exchange, the property has to keep some or all units at below-market rents for a set period.
Bond-financed properties usually pair with 4% Low-Income Housing Tax Credits, and together the financing model works for workforce (80% AMI) or mixed-income units.
Why This Matters to Renters
If you’re in the workforce band (earning too much for 60% LIHTC but priced out of market rent), bond properties are often exactly your target. They tend to sit at 60-80% AMI, which is where the workforce gap lives.
How Bond Rent Works
Rent at a bond unit is capped similar to LIHTC: by the tier (usually 60% or 80% AMI) and adjusted for utility allowance and bedroom count. Your personal income doesn’t set the rent; the tier does.
Income at move-in has to be under the tier cap. Recertification follows the same 140% over-income rule that LIHTC uses.
How Bond Differs from 9% LIHTC
- 9% LIHTC: competitive TDHCA allocation; often deeper affordability (30-60%)
- 4% LIHTC + bond: non-competitive; often workforce or mixed (60-80%)
Practically for you, the tier of your specific unit matters more than the financing mechanism behind it.
Finding Them
TDHCA publishes a list of financed properties. We match you to open bond properties in your metro at intake if the workforce band fits your income.
