Consumer Alerts
2025 MULTIFAMILY LOW INCOME HOUSING PROPERTY CAPITALIZATION RATE
Pursuant to Sec. 11.1825(r) of the Texas Property Tax Code, the Harris Central Appraisal District gives public notice of the capitalization rate to be used for the current tax year to value properties receiving exemptions under this section. Rent restricted properties vary widely. These variations can have an effect on the valuation of the property. The following capitalization rates will be used to value these low-income housing Subsidized (Type 4221) and Tax Credit (Type 4222) apartment properties in Harris County, Texas; although adjustments may be made based on the individual property characteristics and the information provided to the Chief Appraiser as required under Sections 11.182 (d) and (g), Property Tax Code. Subsidized apartments are not registered as Tax Credit but are multifamily low income housing with a Land Use Restriction Agreement (LURA).
| Class | Subsidized Rate | Tax Credit Rate |
|---|---|---|
| A | 7.50% | 7.50% |
| B | 8.00% | 8.00% |
| C | 8.50% | 8.50% |
| D | 9.00% | 9.00% |
The Effective Tax Rate is added to the Capitalization Rate to convert net operating income to property value.