LIHTC Market Study Requirements in Virginia

The agency & primary document

Allocating agency

Virginia Housing (VHDA)

QAP / guidelines

https://www.virginiahousing.com/partners/rental-housing/housing-tax-credits

Governing document

Virginia Housing Market Study Guidelines (structured as Sections A-L mirroring NCHMA MCS)

Methodology

NCHMA Model Content Standards

Required market study sections

Virginia 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 Virginia rules

Virginia-specific overlays

• Effective date is the SITE INSPECTION date, not the report date — must be stated on cover page or in Executive Summary
• Three-tier staleness rule: ≤ 6 months current; 6-12 months requires 'no material changes' letter; > 12 months requires new site inspection
• Capture rates required in three framings: LIHTC Units, Market Units, All Units
• Dual-scenario demand for projects with rental assistance (with AND without subsidy)
• Analyst must be current NCHMA member (affirmed in certification)

Required companion documents

• Seven-statement signed analyst certification with VERBATIM prescribed language at end of Section L — includes: physical inspection of site and market area; appropriate information used; market can support demand; no interest in development; no representation of acting for Virginia Housing; compensation not contingent on selection; evidence of NCHMA membership included

Things analysts miss in Virginia

• Easy to misstate effective date as report date — site inspection date controls, not the report completion date

Frequently asked questions

Who reviews LIHTC market studies in Virginia?

Virginia Housing (VHDA) sets the market study requirements and reviews submissions for Virginia Low-Income Housing Tax Credit applications.

How current must a Virginia LIHTC market study be?

Three-tier: ≤ 6 months = current; 6-12 months requires analyst 'no material changes' letter; > 12 months requires new site inspection within 12 months of application deadline

Does Virginia follow NCHMA standards?

Virginia market studies follow the NCHMA Model Content Standards section structure — Virginia Housing defers to NCHMA Model Content Standards Version 3.0 as primary methodology. Layer state-specific overlays on top..

Is there a capture-rate threshold in Virginia?

Capture rates required in THREE framings: LIHTC Units, Market Units, All Units

Other states

See all 51 states →

This summary is for general reference and reflects Virginia Housing (VHDA)'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.