A low-income housing program is pouring big money into housing many Oregonians can’t afford
Oregon’s Low-Income Housing Tax Credit program, which provides up to $15 billion annually in federal subsidies, has created apartments priced at around $1,400 per month for a one-bedroom—affordable only for families earning 60% of the median income ($75,000), leaving thousands of lower-income Oregonians unable to access housing. Nearly 2,000 subsidized units in Portland remain vacant despite a severe homelessness crisis, with economists criticizing the program for failing to target truly low-income renters and instead fueling an oversupply in already saturated markets.
The federal Low-Income Housing Tax Credit, a program offering up to $15 billion in annual subsidies, has expanded affordable housing in Oregon—but many units remain out of reach for low-income residents. Portland, facing a severe homelessness crisis with thousands sleeping on streets, has relied on the program alongside local funding to incentivize developers. However, the affordability threshold—60% of median income, or about $75,000 for a family of four—means rents average around $1,400 per month for a one-bedroom, nearly half the income of someone earning minimum wage ($35,000). Nearly 2,000 subsidized apartments in Portland sit vacant, a trend mirrored in Seattle, San Francisco, and Denver, where similar programs have failed to address housing shortages. Economists argue the tax credit does not sufficiently subsidize housing for truly low-income renters, instead creating surplus units in markets already oversupplied. Studies from 1991 to 2024 suggest the program’s impact could be doubled by shifting funds to rental vouchers, allowing consumers—not the government—to direct subsidies. Critics like Kirk McClure, an emeritus urban planning professor at the University of Kansas, say the program lacks its intended purpose. The tax credit has spawned an industry of developers, investors, and specialists profiting from its complexity, rather than effectively addressing housing shortages. With homelessness worsening, researchers urge reforms to better target low-income populations and improve the program’s efficiency.
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