Texas Programs

Government Grants & Incentives for Real Estate Investors in Houston

Houston is one of the most active LIHTC markets in the nation, with no state income tax and a pro-development regulatory environment. The Texas Department of Housing and Community Affairs allocates significant credits annually, and local programs supplement federal incentives.

53 designated tracts
Opportunity Zones
$1,318
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Texas Department of Housing and Community Affairs (TDHCA)

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Public Housing Authority

Houston Housing Authority

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Local Programs

Houston Government Incentive Programs

These programs are available specifically to investors and developers in the Houston, TX market.

Houston TIRZ (Tax Increment Reinvestment Zones)

Over 25 active TIRZ districts capturing property tax growth to fund infrastructure and affordable housing.

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TDHCA 9% LIHTC Competitive Round

Texas allocates one of the largest LIHTC pools nationally — over $90M in annual 9% credits.

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Houston Land Bank

Acquires tax-delinquent properties and transfers them to developers for affordable housing construction at below-market prices.

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Harris County CDBG Funding

Community Development Block Grant funding distributed through Harris County for housing rehabilitation and community development.

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LIHTC Tax Credits in Texas

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

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

Texas Allocator

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

View TDHCA LIHTC Program
Investor Tips

Why Invest in Houston?

No state income tax — one of the best states for LIHTC investment returns

Texas has one of the largest LIHTC allocation pools in the U.S.

Houston Land Bank provides below-market acquisition opportunities

25+ TIRZ districts offer tax increment financing for development

Finance Government-Incentivized Properties in Houston

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

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 Houston's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Houston

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

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