The agency & primary document
- Allocating agency
- Illinois Housing Development Authority (IHDA)
- QAP / guidelines
- https://www.ihda.org/developers/tax-credits/
- Governing document
- Standards for Site and Market Study Reviews & Professionals, 2027-2028 QAP (separate from the QAP body)
- Methodology
- NCHMA Model Content Standards
Required market study sections
Illinois market studies follow the NCHMA Model Content Standards. The required sections are:
- Executive Summary — Concise summary of each section including data, analysis, and conclusions. 11 minimum content items including feasibility opinion, strengths/weaknesses, absorption estimate.
- Introduction and Scope of Work — Purpose, intended use, intended users, scope of work, effective date, physical inspection date.
- Project Description — Unit mix, utilities, target market, unit and community amenities, construction date. If rehab: scope of work, existing rents and vacancies.
- Location — Site description, site photos/maps, community services map, neighborhood evaluation (visibility, accessibility, crime).
- Market Area Definition — PMA description and rationale, PMA map. Extended/secondary market area if applicable.
- Employment and Economy — Employment trends, employment by sector, unemployment rates, major employers and proximity, planned expansions/reductions.
- Demographic Characteristics — Population and household estimates/projections, building permits, household characteristics (income, tenure, size). Senior/special needs: target-market data.
- Competitive Environment — Comparable profiles and photos, map of comps, vacancy and rents analysis, subject comparison, affordable housing alternatives, pipeline projects.
- Affordability Analysis, Demand Analysis, Capture Rates, and Penetration Rates — Demand estimate, affordability analysis, capture rate, penetration rate.
- Local Perspective of Rental Housing Market and Housing Alternatives — NEW in MCS 3.1 (September 2025). Local market context and housing alternatives beyond standard comparable analysis.
- Analysis / Conclusions — Absorption rate and lease-up timeline, market feasibility statement, strengths and weaknesses, key conclusions reconciling any conflicting indicators, recommendations if any.
- Other Requirements — Analyst qualifications, data sources, physical inspection date, limiting conditions, signed certification.
Illinois Housing Development Authority (IHDA) market study checklist → — every required item, with a link to the agency's guideline.
Key Illinois rules
- Staleness window
- "should be no more than 9 months old at the time it is submitted to IHDA" (Standards, Section III)
- Capture-rate threshold
- Capture rate guidance thresholds (NOT hard gates): ≤ 5% family / ≤ 7% elderly acceptable; Penetration rate ≤ 25% acceptable
- Rent-burden standard
- 35% family / 45% elderly (45% is higher than most states' senior assumption)
- Absorption / occupancy
- Stabilization target 95%
Illinois-specific overlays
- CRITICAL: Capture rate denominator = ALL income/age-eligible households, NOT renters only — renter-only denominator is WRONG for Illinois
- Mandatory section: Impact on Other IHDA Properties (separate analysis from impact on non-IHDA affordable housing)
Required companion documents
- 2026 Site and Market Study Summary Form (xlsx, analyst-fills)
- Certification of no undue pressure or collusion (analyst-signed)
Things analysts miss in Illinois
- Capture rate denominator is the single most distinctive Illinois prescription — applying NCHMA's renter-only denominator is a compliance failure
Build the Market Data section of your Illinois study
StudyScribe auto-fills the Market Data section — employment, unemployment, building permits, crime and amenities — from BLS, Census, HUD, FBI and Google sources, cites every figure, and exports a Word document formatted for Illinois Housing Development Authority (IHDA) submissions. Start free — no credit card.
Request access for your Illinois study →Frequently asked questions
Who reviews LIHTC market studies in Illinois?
Illinois Housing Development Authority (IHDA) sets the market study requirements and reviews submissions for Illinois Low-Income Housing Tax Credit applications.
How current must a Illinois LIHTC market study be?
"should be no more than 9 months old at the time it is submitted to IHDA" (Standards, Section III)
Does Illinois follow NCHMA standards?
Illinois market studies follow the NCHMA Model Content Standards section structure — Illinois uses its own methodology with NCHMA acknowledgment. State requirements control where they differ from NCHMA..
Is there a capture-rate threshold in Illinois?
Capture rate guidance thresholds (NOT hard gates): ≤ 5% family / ≤ 7% elderly acceptable; Penetration rate ≤ 25% acceptable
What absorption/occupancy does Illinois expect?
Stabilization target 95%
Other states
This summary is for general reference and reflects Illinois Housing Development Authority (IHDA)'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.