Tennessee Programs

Government Grants & Incentives for Real Estate Investors in Nashville

Nashville's explosive growth and rising housing costs have triggered significant government investment in affordable housing. Tennessee Housing Development Agency's LIHTC program, combined with the Barnes Fund and local incentives, create opportunities for investors willing to include affordable units.

23 designated tracts
Opportunity Zones
$1,462
Section 8 (2-BR)
LIHTC
Tax Credits Available
4
Local Programs

State Housing Finance Agency

Tennessee Housing Development Agency (THDA)

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Public Housing Authority

Metropolitan Development and Housing Agency (MDHA)

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Local Programs

Nashville Government Incentive Programs

These programs are available specifically to investors and developers in the Nashville, TN market.

Barnes Fund for Affordable Housing

Nashville's dedicated housing trust fund providing gap financing, land acquisition assistance, and predevelopment loans for affordable housing.

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THDA LIHTC Program

Tennessee allocates 9% and 4% credits through THDA, with Nashville receiving strong allocation due to population growth.

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Nashville PILOT (Payment In Lieu of Taxes)

Tax abatement program for affordable housing developments, reducing operating costs and improving investor returns.

Davidson County HOME Funds

Federal HOME program funds distributed through Metro Nashville for affordable rental development and rehabilitation.

LIHTC Tax Credits in Tennessee

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

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

Tennessee Allocator

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

View THDA LIHTC Program
Investor Tips

Why Invest in Nashville?

No state income tax maximizes after-tax returns

Nashville has a 30,000+ unit affordable housing shortfall

Barnes Fund provides critical gap financing for projects

PILOT program can significantly reduce operating costs for affordable developments

Finance Government-Incentivized Properties in Nashville

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

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 Nashville's Opportunity Zones under a single loan structure.

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Frequently Asked Questions

Get Financing for Investment Properties in Nashville

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

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