Capitalization Rate Set for 2025 Low-Income Housing in Denton County

Denton County

April 11, 2025 Maverick Tax Guardians

Denton CAD Sets 2025 Capitalization Rate for Low-Income Housing Appraisals

January 15, 2025 – Denton, TX

The Denton Central Appraisal District has announced the capitalization rate that will be used to appraise qualifying low-income housing properties for the 2025 tax year. In accordance with Section 11.1825 of the Texas Property Tax Code, properties owned by eligible organizations that are constructing or rehabilitating low-income housing—and that are not already exempt—must be appraised using the income method.

Don Spencer, Chief Appraiser for the Denton Central Appraisal District, confirmed that a capitalization rate between 7.0% and 8.5% will be applied for appraisals of qualifying Community Housing Development Organization (CHDO) properties.

This appraisal method and capitalization rate align with the procedures used for other rent-restricted properties in the region, ensuring a consistent approach to valuation for organizations dedicated to affordable housing.

Organizations involved in the development or rehabilitation of low-income housing in Denton County should review their eligibility and prepare accordingly for the upcoming tax year.

source
This news article is based on information from:
Dentoncad.com -“Denton CAD Sets 2025 Capitalization Rate for Low-Income Housing Appraisals”(January 15, 2025). Retrieved from:https://www.dentoncad.com/