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LIHTC Market Study Requirements in Arkansas

What Arkansas Development Finance Authority (ADFA) requires in a Low-Income Housing Tax Credit (Section 42) market study — current as of the 2026 QAP signed/final (posted 2025-09-09); standalone Market Study Guidelines (eff. July 20, 2017) remain the current version cycle.

Updated July 2026 · Reference for affordable-housing analysts

The agency & primary document

Allocating agency
Arkansas Development Finance Authority (ADFA)
QAP / guidelines
https://adfa.arkansas.gov/programs/housing-development/low-income-housing-tax-credit/
Governing document
2026 QAP (embedded Multifamily Housing Application Guidelines, capture gate §I.C.6) + standalone Market Study Guidelines (eff. July 20, 2017)
Methodology
Agency-specific standalone methodology

Required market study sections

Arkansas uses its own standalone market study methodology rather than the NCHMA Model Content Standards. Agency-specific methodology — ADFA publishes its own standalone guidelines (stable since 2017) with its own capture-rate scoring chart.

Key Arkansas rules

Staleness window
Market study dated within 6 months prior to the Application Deadline
Capture-rate threshold
Per-unit capture rate > 20% = application rejected (2026 QAP §I.C.6 gate) — must clear BEFORE the 2017 Guidelines §VIII weighted-average scoring chart applies
Persons per bedroom
Two (2) persons per bedroom (income-qualification sizing; per AR Code Ann. §16-123-307(c)(3))
Absorption / occupancy
Absorption period = time to reach 95% occupancy from first-unit release (2017 Guidelines §IX)

Arkansas-specific overlays

Required companion documents

Things analysts miss in Arkansas

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Frequently asked questions

Who reviews LIHTC market studies in Arkansas?

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

How current must a Arkansas LIHTC market study be?

Market study dated within 6 months prior to the Application Deadline

Does Arkansas follow NCHMA standards?

Agency-specific methodology — ADFA publishes its own standalone guidelines (stable since 2017) with its own capture-rate scoring chart.

Is there a capture-rate threshold in Arkansas?

Per-unit capture rate > 20% = application rejected (2026 QAP §I.C.6 gate) — must clear BEFORE the 2017 Guidelines §VIII weighted-average scoring chart applies

What absorption/occupancy does Arkansas expect?

Absorption period = time to reach 95% occupancy from first-unit release (2017 Guidelines §IX)

Other states

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This summary is for general reference and reflects Arkansas Development Finance Authority (ADFA)'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.