LIHTC Market Study Requirements in South Carolina

The agency & primary document

Allocating agency

South Carolina State Housing Finance and Development Authority (SC Housing)

QAP / guidelines

https://schousing.sc.gov/development/housing-tax-credit-lihtc

Governing document

2026 QAP + 2026 Appendix A — Market Study Criteria (the 2026 Appendix A file is named '2025_Appendix_A_Market_Study_Final.pdf' but is the operative 2026 version)

Methodology

NCHMA Model Content Standards

Required market study sections

South Carolina 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 South Carolina rules

South Carolina-specific overlays

• Use an Authority-approved market analyst; SC Housing forwards every study to its own third-party reviewing analyst and is not bound by the applicant's conclusions
• Must include the complete Exhibit S-2 form, S-2 Calculation sheet, and S-2 Worksheet
• Elderly-homeowner-conversion demand ≤ 20% of total demand
• Supply subtracts comparable units placed in service since 2024; vacancies in <93%-occupied comps counted as supply
• Same-market-area rule: new construction generally barred for the same tenant population near Authority-funded developments from the prior two cycles
• Demand for PBRA-above-LIHTC-rent projects must be shown both with and without rental assistance

Required companion documents

• 2026 QAP + Amendments
• Appendix A — Market Study Criteria
• Exhibit S-2 form, S-2 Calculation sheet, and S-2 Worksheet
• Appendices B / C1 / C2 / C3 / E

Things analysts miss in South Carolina

• The 2026 'Appendix A – Market Study Criteria' link points to a file named '2025_Appendix_A_Market_Study_Final.pdf' — it IS the operative 2026 version
• The 30% capture cap and 12-month absorption cap are in the QAP Economic Viability section, NOT Appendix A (which is methodology only)

Frequently asked questions

Who reviews LIHTC market studies in South Carolina?

South Carolina State Housing Finance and Development Authority (SC Housing) sets the market study requirements and reviews submissions for South Carolina Low-Income Housing Tax Credit applications.

How current must a South Carolina LIHTC market study be?

Not specified for the market study (the QAP dates the PNA ≤12 months and Phase I ESA ≤6 months, not the study) — verify

Does South Carolina follow NCHMA standards?

South Carolina market studies follow the NCHMA Model Content Standards section structure — Own-methodology with NCHMA acknowledged. SC Housing prescribes its own demand methodology (Exhibit S-2) but requires adherence to NCHMA's Market Study Terminology..

Is there a capture-rate threshold in South Carolina?

All developments must have a capture rate at or below 30% (computed per income group, per bedroom size, and project-overall; refined large-household analysis when >20% of units are 3BR+)

What absorption/occupancy does South Carolina expect?

Absorption / lease-up period of 12 months or less

Other states

See all 51 states →

This summary is for general reference and reflects South Carolina State Housing Finance and Development Authority (SC Housing)'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.