15 Ark. Code of Rules § 86-305
Rent subsidies
Operative Text
15 CAR § 86-305. Rent subsidies. (a) Gross rent does not include any housing assistance payments made to an owner to subsidize a tenant's rent (i.e., Section 8). (b) Only the actual rent paid by the tenant, including tenant-paid utilities, is counted toward the maximum allowable rent. (c)(1) For example, if the LIHTC maximum gross rent is three hundred fifty dollars ($350) and the total tenant payment is two hundred fifty dollars ($250) with rental assistance paying an additional subsidy of one hundred fifty dollars ($150) to equal the contract rent of four hundred dollars ($400), there is no problem. (2) The amount paid by the tenant, including utilities, does not exceed three hundred fifty dollars ($350).
Under 15 Ark. Code R. pt. 86 § 86-305, housing assistance payments—such as Section 8 voucher payments made directly to a property owner—are excluded from the calculation of gross rent for Low-Income Housing Tax Credit (LIHTC) purposes. Only the portion of rent actually paid by the tenant, including any utilities the tenant pays, counts toward the LIHTC maximum allowable gross rent limit. This means a contract rent can exceed the LIHTC gross rent ceiling as long as the tenant's own share stays within that ceiling.
Plain English — not legal advice.
Operators of LIHTC properties in Arkansas should structure rent calculations under § 86-305 so that the tenant-paid portion—including tenant-paid utilities—does not exceed the applicable LIHTC maximum gross rent, even when a housing subsidy such as Section 8 brings the total contract rent above that ceiling. Compliant operators track the tenant payment and the subsidy payment separately, ensuring documentation clearly shows that the tenant's share alone is within the allowable limit. Maintaining clear records of both the contract rent and the subsidy amount helps demonstrate compliance during audits or reviews.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 86-305 of the Arkansas LIHTC regulations protects tenants in subsidized housing by ensuring that only the rent and utilities a tenant actually pays are measured against the program's maximum rent limits—not the full contract rent that includes any housing assistance payment. This means a tenant receiving Section 8 or similar rental assistance should not be required to pay more than the LIHTC gross rent ceiling out of their own pocket. Tenants who believe their required payment exceeds that ceiling may wish to contact a local tenant-rights organization or the Arkansas housing authority overseeing their property to understand available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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