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LIHTC Market Study Requirements in Alabama

What Alabama Housing Finance Authority (AHFA) requires in a Low-Income Housing Tax Credit (Section 42) market study — current as of the 2025 Housing Credit QAP (Governor-approved Sept 18, 2024), incl. Addendums A–C cycle.

Updated July 2026 · Reference for affordable-housing analysts

The agency & primary document

Allocating agency
Alabama Housing Finance Authority (AHFA)
QAP / guidelines
https://www.ahfa.com/multifamily/underwriting/market-analysis
Governing document
2025 Housing Credit QAP — Market Study threshold/underwriting criteria, plus AHFA's Certification of Market Study Requirements Form
Methodology
Agency-specific standalone methodology

Required market study sections

Alabama uses its own standalone market study methodology rather than the NCHMA Model Content Standards. Agency-specific — AHFA sets its own pass/fail market criteria and certification form; the QAP does not reference NCHMA.

Key Alabama rules

Staleness window
Less than 6 months old at application
Capture-rate threshold
Application is TERMINATED if the proposed project's capture rate exceeds 35%

Alabama-specific overlays

Required companion documents

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Frequently asked questions

Who reviews LIHTC market studies in Alabama?

Alabama Housing Finance Authority (AHFA) sets the market study requirements and reviews submissions for Alabama Low-Income Housing Tax Credit applications.

How current must a Alabama LIHTC market study be?

Less than 6 months old at application

Does Alabama follow NCHMA standards?

Agency-specific — AHFA sets its own pass/fail market criteria and certification form; the QAP does not reference NCHMA.

Is there a capture-rate threshold in Alabama?

Application is TERMINATED if the proposed project's capture rate exceeds 35%

Other states

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This summary is for general reference and reflects Alabama Housing Finance Authority (AHFA)'s published guidance as understood by StudyScribe; it is not legal or compliance advice. Always confirm requirements against the current QAP / market study guidelines before submission.