Michigan Programs

Government Grants & Incentives for Real Estate Investors in Detroit

Detroit's revitalization has created one of the most incentive-rich environments for affordable housing investment in the country. With extremely low acquisition costs, aggressive land bank programs, and Michigan's LIHTC, investors can build affordable housing portfolios with minimal capital.

52 designated tracts
Opportunity Zones
$1,049
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Michigan State Housing Development Authority (MSHDA)

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Public Housing Authority

Detroit Housing Commission

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Local Programs

Detroit Government Incentive Programs

These programs are available specifically to investors and developers in the Detroit, MI market.

Detroit Land Bank Authority

Sells city-owned properties for as little as $1,000 to developers committed to rehabilitation, creating extremely low-basis affordable housing.

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MSHDA LIHTC Program

Michigan allocates LIHTC credits with a QAP that strongly favors Detroit developments and projects addressing blight.

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Detroit NEZ (Neighborhood Enterprise Zone)

Property tax abatements for up to 15 years on new construction and rehabilitation in designated neighborhoods.

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Strategic Neighborhood Fund (SNF)

Public-private initiative targeting investment in 10 Detroit neighborhoods with housing, commercial, and infrastructure improvements.

LIHTC Tax Credits in Michigan

Low-Income Housing Tax Credits are the largest source of affordable housing financing in the U.S. In Michigan, credits are allocated by MSHDA.

How LIHTC Works

  • Dollar-for-dollar federal tax credit over 10 years
  • 9% competitive credits for new construction
  • 4% credits paired with tax-exempt bonds
  • 15-year compliance period for affordable rents

Michigan Allocator

Credits are allocated by MSHDA through their Qualified Allocation Plan (QAP), which outlines scoring criteria and priorities.

View MSHDA LIHTC Program
Investor Tips

Why Invest in Detroit?

Land Bank properties available for as low as $1,000 — some of the lowest entry points in the U.S.

NEZ tax abatements save thousands annually for 15 years

52 Opportunity Zones across the city with massive upside potential

MSHDA QAP heavily favors Detroit projects in competitive rounds

Finance Government-Incentivized Properties in Detroit

FundNow Capital provides DSCR loans, bridge financing, and portfolio loans that complement government incentive programs in Detroit.

DSCR Loans

Qualify using Section 8 rental income — government-backed rents strengthen your DSCR ratio.

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Bridge Loans

Short-term financing to acquire and stabilize properties before permanent LIHTC or agency financing.

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Portfolio Loans

Finance multiple properties in Detroit's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Detroit

Tell us about your Detroit investment plans. We'll match you with the best financing options within 24 hours.

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