The agency & primary document
- Allocating agency
- Michigan State Housing Development Authority (MSHDA)
- QAP / guidelines
- https://www.michigan.gov/mshda/developers/low-income-housing-tax-credits-lihtc
- Governing document
- MSHDA Guidelines for Market Studies (Tab C), updated July 15, 2026
- Methodology
- NCHMA Model Content Standards
Required market study sections
Michigan 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.
Michigan State Housing Development Authority market study checklist → — every required item, with a link to the agency's guideline.
Key Michigan rules
- Staleness window
- "These studies must be dated no more than 6 weeks prior to the submission deadline for the funding round unless they are resubmissions from a previous round" (resubmissions: no more than 10 months) (Guidelines §III.D, p. 8)
- Capture-rate threshold
- Capture Rate ≤ 50%; Penetration Rate ≤ 6% (family) / ≤ 3% (senior); Saturation Rate ≤ 20% (family) / ≤ 10% (senior)
- Rent-burden standard
- 30% market-rate / 40% lower-income (NOT a family/senior split — differs from WI/MN)
- Persons per bedroom
- 1.5 per bedroom (family); 2-person senior household
Michigan-specific overlays
- Four study types: Full 9%, Full 4%, Reduced Scope, Update Letter — Full 9% cannot be submitted for 4% credits
- Mandatory section order — MSHDA reserves right to return studies not following Guidelines order
Required companion documents
- MSHDA Market Study Key Data Spreadsheet (one page max, placed FOLLOWING Table of Contents)
- Demand Estimation Sheet with Movership Rates (Excel, uses Census table HCT11 for family, HUDUser for senior)
- Rent Comparability Grids in spreadsheet form WITH formulas — MSHDA must be able to revise weights and add/delete comparables
Things analysts miss in Michigan
- Rent burden split is 30% market-rate / 40% lower-income — NOT the family/senior split used by WI and MN
- Akamai filter on michigan.gov may block programmatic access — use browser access for downloads
Build the Market Data section of your Michigan 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 Michigan State Housing Development Authority (MSHDA) submissions. Start free — no credit card.
Request access for your Michigan study →Frequently asked questions
Who reviews LIHTC market studies in Michigan?
Michigan State Housing Development Authority (MSHDA) sets the market study requirements and reviews submissions for Michigan Low-Income Housing Tax Credit applications.
How current must a Michigan LIHTC market study be?
"These studies must be dated no more than 6 weeks prior to the submission deadline for the funding round unless they are resubmissions from a previous round" (resubmissions: no more than 10 months) (Guidelines §III.D, p. 8)
Does Michigan follow NCHMA standards?
Michigan market studies follow the NCHMA Model Content Standards section structure — Michigan uses its own methodology with NCHMA acknowledgment. State requirements control where they differ from NCHMA..
Is there a capture-rate threshold in Michigan?
Capture Rate ≤ 50%; Penetration Rate ≤ 6% (family) / ≤ 3% (senior); Saturation Rate ≤ 20% (family) / ≤ 10% (senior)
Other states
This summary is for general reference and reflects Michigan State Housing Development Authority (MSHDA)'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.