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What below-market-rate units are
Inclusionary housing (or inclusionary zoning) policies require or encourage developers to include affordable units in new market-rate buildings, often in exchange for extra density or tax benefits. These are commonly called below-market-rate (BMR) or affordable units. Hundreds of U.S. jurisdictions have some form of inclusionary program.
Many new tax credit and city-financed buildings also fill their units through lotteries instead of first-come lists, to give everyone who applies during a window an equal chance.
Income bands
Each unit is restricted to a range of incomes—a band—tied to area median income (AMI):
| Example band | Typical use |
|---|---|
| 30%–50% AMI | Deeper affordability; often paired with rental assistance |
| 50%–60% AMI | Common tax credit level |
| 80% AMI | Many inclusionary units |
| 100%–130% AMI | “Middle-income” units in high-cost cities |
You must fit within the band for your household size. Rents are set so the unit is affordable at the band’s target income, which means:
- Maximum income: you can’t earn more than the band’s ceiling.
- Minimum income: you usually must earn enough that rent won’t exceed a set share of your income (for example, rent ≤ 30–40% of income), unless you have a voucher.
How to apply
- Find the portal. Large cities run centralized lottery websites; elsewhere, buildings advertise through a marketing agent, newspapers, and the city housing department’s website.
- Create a profile with household members, income, and contact information. Some portals let you reuse it for every lottery.
- Check eligibility per building: unit sizes, income bands, household size limits, and preferences.
- Apply before the deadline. Submission time usually doesn’t matter in a lottery.
- Save your confirmation and log number.
How selection works
- Random ordering: after the deadline, applications are randomly sorted.
- Preferences: many lotteries reserve a share of units for groups such as local residents, people with disabilities (for accessible units), city employees, or people displaced by government action. Applicants who qualify for a preference are considered first for those units.
- Processing in order: the marketing agent contacts applicants in lottery order, checks eligibility, and continues until units are filled.
After you’re selected
Being contacted means you’re invited to complete an eligibility review, not that you’ve won a unit. Expect:
- A short deadline to submit documents: tax returns, W-2s, recent pay stubs, bank statements, benefit letters, IDs, and proof of preference
- Income verification against the band—too high or too low disqualifies you
- Screening for credit, rental history, and sometimes criminal history under written criteria
- Asset limits in some programs
- An interview and lease signing
If you’re rejected, you’re typically entitled to a written reason and a chance to appeal within a short deadline. Appeal if the decision was based on a miscalculation or misunderstanding.
Tips that improve your chances
- Apply to every lottery you qualify for. Odds per building can be long; volume matters.
- Keep documents ready so you can respond within days.
- Report income accurately. Estimates that differ from your documents are a leading reason for disqualification.
- Understand the household-size rules. Units may have minimum and maximum occupancy.
- Claim preferences you can prove, such as local residency.
- Keep contact information current and check spam folders.
Watch out
- Lotteries are free to enter. Never pay anyone to apply or to improve your position.
- Confirm the listing on the city’s official site or the developer’s marketing agent site before submitting personal documents.
- Read the regulatory agreement or lease rider: how long the unit stays affordable, how rent increases are calculated, and what happens if your income rises.
Frequently asked questions
Do I have to live in the city to apply for a housing lottery?
Usually not, but many cities give a preference to current residents, people who live in the building’s community district, or people who work in the city. Rules vary—read each listing.
Is there a minimum income for lottery apartments?
Often yes. Because rents are fixed, units typically have both a minimum and a maximum income. Applicants with a housing voucher or other rental assistance are usually exempt from the minimum income, but check the listing.
Can I apply to more than one lottery?
Yes, and most people apply to many. Some cities don’t allow more than one application per household per building—duplicate entries can be disqualified.
How long does it take to hear back?
Anywhere from weeks to many months after the deadline. Buildings contact applicants in lottery order. Many applicants never hear back because units fill before their number is reached.
Are below-market-rate units rent stabilized?
It depends on local law. In some cities, affordable units are also rent regulated; elsewhere, rent increases are tied to changes in AMI-based limits. Ask about the regulatory term (how many years the unit stays affordable) and how renewals work.
Sources and verification
Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.
Update note (2026-10-01): Replaced the promise-oriented “apply and win” heading with eligibility and application guidance.
- Inclusionary ZoningHUD USER (Evidence Matters)
- Income LimitsHUD USER
- Fair Housing Act overviewU.S. Department of Housing and Urban Development
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