Affordable Housing in Michigan – 2025 Complete Guide
Learn how income-restricted apartments in Michigan work, see 2025 HUD income limits, compare LIHTC vs. Section 8, and follow our step-by-step roadmap to a rent you can truly afford.
Program Overview: How Affordable Housing Works in Michigan
“Affordable housing” is a broad label covering any rental program that caps rent at roughly 30 percent of a household’s adjusted income, rather than whatever the private market will bear. In Michigan, the Michigan State Housing Development Authority (MSHDA) coordinates a patchwork of federal incentives—Low-Income Housing Tax Credits (LIHTC), HOME funds, National Housing Trust Fund dollars, and Neighborhood Stabilization Program grants—to coax private developers into reserving units for lower-income families.
Rent ceilings are calculated from the Area Median Income (AMI) published annually by HUD. Typical caps are set at 30 percent, 50 percent, or 60 percent of AMI, depending on the property’s financing mix. Qualifying households sign the same 12-month lease you’d see in a market-rate building, but their rent stays tethered to income for the entire compliance period (usually 15–30 years).
Three models dominate Michigan:
Project-based subsidies (LIHTC) – rent stays low as long as you reside in that specific apartment.
Tenant-based assistance (Section 8 vouchers) – subsidy follows you to any qualifying unit; see our Section 8 guide.
Public housing – owned by local housing commissions; shrinking but still relevant in Detroit and Flint.
Throughout this page you’ll find tables, checklists, and practical tools to turn theory into keys in hand. For real-time vacancies, visit our housing-search hub; for legal disputes (rent overcharges, denial of preference points) head to legal help.
2025 HUD Income Limits for Michigan
Eligibility revolves around your household’s gross income compared to the Area Median Income. HUD sets three key thresholds: 30 % AMI (extremely low), 50 % AMI (very low), and 60 % AMI (standard LIHTC ceiling). Michigan’s 2025 statewide median income is $93,200; numbers below use that baseline. High-cost counties like Washtenaw or Oakland may publish higher limits.
2025 Michigan Statewide Income Limits (HUD)
Household Size
30 % AMI
50 % AMI
60 % AMI
1
$19,600
$32,750
$39,300
2
$22,400
$37,400
$44,880
3
$25,200
$42,000
$50,400
4
$27,950
$46,550
$55,860
5
$30,200
$50,300
$60,360
6
$32,450
$54,000
$64,800
7
$34,700
$57,700
$69,240
8
$36,950
$61,400
$73,680
Common Misconceptions
Overtime and bonuses do count as income unless specifically excluded.
Student-loan proceeds are not treated as income, but work-study wages are.
You can still qualify with assets—only the imputed interest is counted, not principal.
AMI Eligibility Checker
LIHTC vs. Section 8: What’s the Difference?
Many renters confuse the Low-Income Housing Tax Credit program (LIHTC) with Section 8 vouchers. Both aim to cap rent, but they operate very differently.
LIHTC Highlights
Property-based subsidy—unit stays affordable for 15–30 years.
Rent tied to 30 % of imputed AMI, not your individual income.
Annual income recertification; small raises may not push you out.
Not portable—moving means re-qualifying elsewhere.
Section 8 Voucher Highlights
Tenant-based—subsidy follows you to any landlord who will accept it.
You generally pay 30 % of actual adjusted income, HUD covers the rest.
Portability across county and, in many cases, state lines.
Myth busted: LIHTC buildings are not public housing projects. They are privately owned apartments receiving a tax incentive to keep rents below market.
Request a pre-application. Many LIHTC properties email a short form to place you on their list.
Gather your document packet (see next section).
Submit screening fees. Michigan caps application fees, but expect $25–$45 per adult.
Compliance interview. A third-party verifier confirms income, assets, and student status.
Unit inspection & lease signing. Pay only the pro-rated first month and security deposit once you pass HFA compliance.
Typical timeline ranges from 30 to 90 days. Speed things up by answering phone calls quickly and forwarding requested pay stubs the same day.
Required Documents Checklist
Government-issued photo ID for all adults
Social Security cards or ITIN letters
Six most recent pay stubs
Two years of W-2s or 1099s
Bank statements (current & previous month)
Child-support order & payment history
Benefit award letters (SSI, VA, TANF, unemployment)
Verification of Employment (VOE) form signed by employer
Self-employment ledger or profit-and-loss statement
Pension or retirement disbursement summary
Asset declarations (401k, stocks, crypto wallets)
Student status verification for household members 18–24
Documents must be originals or clear scans. Torn or blurry copies delay compliance approval by weeks.
Wait-List Strategies: Stand Out & Stay Ready
Michigan properties open and close their wait lists unpredictably. Some maintain year-round lists with “preference points” that bump veterans, people with disabilities, or local residents to the top. Others run first-come, first-served lotteries announced only 48 hours in advance.
Sample Preference Point Weights (Typical LIHTC Property)
Preference
Points
Veteran status
50
Disability
40
Homeless / Displaced
35
Local residency
20
Senior (62+)
10
3 quick tips:
Keep a single PDF bundle of your documents on your phone for fast emailing.
Add property phone numbers to your contacts so you never miss a call-back.
Respond to wait-list update letters within 5 days—silence equals removal.
Common Mistakes That Sink Applications
Forgetting to report gig-economy income like DoorDash tips.
Submitting expired ID or driver’s license with old address.
Missing the annual recertification meeting—management may issue a 30-day notice.
Underestimating asset value; bank verification exposes discrepancies.
Assuming a 580 credit score disqualifies you—income programs set their own credit policies.
Failing to disclose student status; full-time students face special LIHTC rules.
Leaving voicemail only—email provides a paper trail.
Ignoring criminal background criteria; each property has its own look-back period.
Credit & Criminal Misconceptions
A bankruptcy or eviction may lower your odds, but many LIHTC landlords allow mitigating letters and extra deposit. Non-violent misdemeanors older than five years rarely block approval, while recent violent felonies almost always will.
Success Stories: Real Michiganders, Real Savings
Maria D. – Lansing: After a sudden divorce, Maria’s rent consumed 55 percent of her paycheck. She toured three cities, applied to five LIHTC complexes, and kept a color-coded spreadsheet of wait-list positions. Within eight months she moved into a two-bedroom at $735—less than half the market rate. Her takeaway: “Cast a wide net and answer every phone call.”
Ray & Gloria – Kalamazoo: These retirees lived on Social Security plus a modest pension. Their son helped compile a document packet that included a Medicaid printout verifying disability preference. They secured a ground-floor unit with grab-bars, paying just $610 a month inclusive of heat. “Preparation,” Ray says, “turned a 40-page application into a 20-minute interview.”
While every journey differs, both stories share two threads: organized paperwork and persistent follow-up.
Frequently Asked Questions
Not necessarily. Many LIHTC owners use credit only to gauge recent collections activity. If your score reflects medical debt or old utility bills, provide an explanation letter. Section 8 voucher holders typically bypass credit screening altogether—focus remains on rental history and income accuracy.
Each management company sets its own look-back window, but five years is common for non-violent misdemeanors and 10 years for felonies. HUD prohibits lifetime bans except for specific crimes like meth production and sex-offender status. Always request the written screening policy.
Yes. The current balance is compared to a small imputed-interest rate (HUD uses 0.06 %). Only that imputed interest, not the principal, is added to your income for eligibility purposes. Withdrawals, however, do count as income.
For LIHTC you remain eligible, but future rent may rise slightly at recertification if you exceed 60 % AMI. Section 8 vouchers adjust more dynamically—expect a rent increase the month after your wage change is verified. Always report raises within 10 days.
Full-time students without qualifying exemptions (e.g., single parent, married, veteran) are ineligible for most LIHTC units. Part-time students or households with at least one non-student adult can still qualify. Public housing and vouchers have different student rules—check our student-housing guide.
Expect annual recertification. Management will request updated pay stubs, benefit letters, and bank statements. Failure to provide them can trigger lease non-renewal. Keep a digital folder so the process takes minutes, not days.
One affordable unit can be life-changing—know your rights so you can keep it. Visit our rights overview next.
