The agency & primary document
- Allocating agency
- Maryland Department of Housing and Community Development (DHCD) — Community Development Administration (CDA)
- QAP / guidelines
- https://dhcd.maryland.gov/HousingDevelopment/Pages/lihtc/default.aspx
- Governing document
- Multifamily Rental Financing Program (MRFP) Guide §3.12 Market Study (Appendix A to the QAP; 2025 edition)
- Methodology
- NCHMA Model Content Standards
Required market study sections
Maryland 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.
Key Maryland rules
- Staleness window
- Less than 6 months old at application submission (other application documents may be up to 12 months old)
- Capture-rate threshold
- Overall capture rate ≤ 10%; each income band AND bedroom count ≤ 20%. Penetration rate ≤ 100% overall and per band (new construction only).
- Rent-burden standard
- 30% of gross income (family); 35% (elderly) — includes rent plus utility allowance
- Persons per bedroom
- 1.5 per bedroom; 1.0 for efficiency/SRO units
Maryland-specific overlays
- Overall capture ≤ 10%; income band and bedroom-count capture ≤ 20%
- Penetration rate ≤ 100% (new construction only)
- PMA vacancy rate must not exceed 15%
- Analyst must appear on the DHCD list or NCHMA peer-review list
- Mandatory use of the DHCD Multifamily Mapper for the 5-mile proximity report
Required companion documents
- Analyst must be on DHCD's acceptable-analyst list OR the NCHMA peer-reviewed list
- DHCD Multifamily Mapper 5-mile proximity report (generated from the DHCD site)
- Concise executive summary and a project description matching the application
Things analysts miss in Maryland
- Thresholds above are from the 2025 MRFP Guide — a 2026 QAP is in draft; re-verify when posted
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Start a free Maryland report →Frequently asked questions
Who reviews LIHTC market studies in Maryland?
Maryland Department of Housing and Community Development (DHCD) — Community Development Administration (CDA) sets the market study requirements and reviews submissions for Maryland Low-Income Housing Tax Credit applications.
How current must a Maryland LIHTC market study be?
Less than 6 months old at application submission (other application documents may be up to 12 months old)
Does Maryland follow NCHMA standards?
Maryland market studies follow the NCHMA Model Content Standards section structure — NCHMA-based with Maryland overlays — the Guide requires consistency with the current NCHMA Model Content Standards, then layers MD-specific numeric thresholds on top..
Is there a capture-rate threshold in Maryland?
Overall capture rate ≤ 10%; each income band AND bedroom count ≤ 20%. Penetration rate ≤ 100% overall and per band (new construction only).
Other states
This summary is for general reference and reflects Maryland Department of Housing and Community Development (DHCD) — Community Development Administration (CDA)'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.