Identifying LIHTC Market Opportunities in the State of Indiana

As we all know, there are numerous items to think about when choosing a market to develop/invest in. Due to the requirements of the Low-Income Housing Tax Credit (LIHTC) program and the Indiana Housing and Community Development Authority (IHCDA), having a good understanding of the market/region you are looking to develop/invest in is a critical step in developing a successful LIHTC property and one that we here at Bowen National Research look forward to helping you with.


One of the more important factors to consider is the location of recently allocated Tax Credit projects as this can give an idea as to where Tax Credit investment is popular, while also illustrating areas where developers may want to use caution due to recent and/or multiple allocations. Understanding the proximity of your site to other allocated projects can help ensure you do not develop/invest in an area that may be saturated in terms of LIHTC product and/or help to identify potentially underserved areas. Between 2016 and 2019, IHCDA has awarded LIHTC allocations to 79 different projects throughout the state of Indiana. While these projects are scattered throughout the state, the cities of Indianapolis (9), Fort Wayne (8), and Evansville (6) have been awarded the most allocations during the past four years. For a full list of allocated projects, reference the IHCDA website here. You can also identify allocated LIHTC properties in your market by selecting the LIHTC data set under the “housing” tab on the Policy Map website here.


Other important factors to consider include demographic and economic trends as well as the performance of existing LIHTC developments within the market being considered. Of course, these metrics will fluctuate from market-to-market. In general, however, markets with high concentrations of lower- to moderate-income renter households and/or lower-wage paying occupations often result in strong support for LIHTC product. Another demographic characteristic to look for is a market(s) in which a relatively large share of households, particularly renter households, pay a disproportionate share of their income towards rent as these households are considered rent overburdened and would benefit from the addition of more affordable rental product. Typically, households which pay more than 35% or 40% of their income towards rent are considered to be rent overburdened. As a whole, the state of Indiana will continue to experience demographic trends conducive to LIHTC development over the next several years as more than half of all renter households are projected to earn less than $40,000 through 2023 and nearly 36% of all renter households are considered to be rent overburdened paying more than 35% of their income towards rent.


The state of Indiana also shows trends conducive to affordable senior (age 55+) rental product, as more than one-quarter of all renter households will be age 55 or older in 2023 and more than 60% of these senior renter households will earn less than $30,000. In fact, senior renter households (age 55+) are projected to increase by more than 6,500 households, or 2.8%, within the state between 2018 and 2023, as compared to renter households under age 55 which are expected to decline slightly during this time period. This suggests that many markets throughout the state could likely benefit from and/or see increased interest in the development of senior LIHTC product in the very near future.  To review demographic characteristics of your market, review the tools offered under the “demographics”, “incomes and spending”, and “housing” tabs on the Policy Map website here, and/or Census and American Community Survey data offered here.


While the preceding provides some good starting points to help determine LIHTC development potential in a market you may be considering, contact Bowen National Research to obtain more detailed information for your specific Indiana market. Our experience and proximity contributes to our knowledge of markets throughout the state of Indiana. In the past three years (2016-2018), Bowen National Research has conducted 60 market studies for 4% and 9% IHCDA Tax Credit application submissions, as well as 24 additional non-state-formatted market studies throughout the state of Indiana. Contact us to schedule your market study and/or for preliminary feedback/data on a market you may be considering for the upcoming July 29th, 2019 IHCDA deadline. Our database of surveyed LIHTC properties throughout the state of Indiana makes it easy for our staff to provide quick feedback on occupancy and rental rates. We look forward to assisting you in any way that we can to provide quality and affordable housing throughout the Hoosier State! In the meantime, don’t forget to review the latest IHCDA Qualified Allocation Plan (QAP) which can be found here.

Blog written by Craig Rupert, Market Analyst with Bowen National Research

Bowen National Research Caps Off Off A Successful 2018 With A Countywide Housing Needs Assessment and Studies in Puerto Rico (Jan 2019)-

Bowen National Research finished a successful 2018 with the completion of a countywide Housing Needs Assessment in Michigan, along with the launch of several others, and a trip to Puerto Rico to study multiple housing projects on the island devastated by Hurricane Maria in 2017. A comprehensive analysis of Ottawa County, Michigan capped off a string of large and high-profile Housing Needs Studies that were finished by our firm in 2018. The community-wide studies included the following:


  • Yellow Springs, Ohio
  • Burke County, North Carolina
  • Dublin, Georgia
  • Beaufort County, South Carolina
  • Evansville, Indiana
  • Ottawa County, Michigan

These comprehensive studies were done during a year that saw Bowen National Research complete nearly 500 market studies in 32 states and Puerto Rico that included a total of 284 markets. The scope of the firm’s work included:


  • Rural Development housing portfolio studies in Kansas
  • Native American housing studies from California to Maine
  • State finance agency work in places like Louisiana and Iowa
  • Work for non-profit groups serving special needs populations such as the homeless and veterans
  • Mixed-use projects in Minneapolis, Minnesota and Anderson, South Carolina
  • Student housing and senior care studies in numerous markets throughout the country

We conducted our first work for Redstone Investments while continuing to work with HUD lenders partners such as Berkadia, Love Funding, and Merchants Capital. Overall, nearly 130 organizations chose Bowen National Research as their trusted partner for real estate markets research and analysis services.


Our firm will not sit idle because of our 2018 successes. We are in the process of investing more than $100,000 in a state-of-the-art database that will enable the firm’s researchers and analysts greater data collection and processing, more data analytics capabilities and better information for users of Bowen’s services. The database, scheduled for implementation in 2019, will empower us to provide more in-depth data analysis, including rent comparisons, rent growth trends, turnover rates, renovation activity, Voucher usage and much more. The new database is just one part of several investments in technology Bowen has planned over the next few years.


The experience and reputation that Bowen National Research’s team has garnered over the years have earned our client’s trust in providing input on market study requirements for state housing finance agencies in Minnesota, Iowa, Michigan, and Virginia. The firm’s principal, Patrick Bowen, currently serves as Co-Chair for the Standards Committee for the National Council of Housing Market Analyst ((NCHMA). This committee, under Mr. Bowen’s leadership, continues to explore key industry issues, including income-averaging under the Tax Credit program and affordable assisted living projects. Bowen National Research is exploring a national survey of apartment managers that would pinpoint housing industry topics and provide the firm with exclusive insight on key market trends that can help its clientele make better strategic decisions involving development.

Patrick Bowen Presents at Nebraska Investment Finance Authority’s Housing Innovation Marketplace


On March 22, 2016, Patrick Bowen presented at the Nebraska Investment Finance Authority’s 2016 Housing Innovation Marketplace. The session was titled “Housing Market Studies” and was moderated by Ms. Casey Cline, Development Director at Travois. Additional panelists included Mr. Timothy M. Keelan, Principal Partner
of HANNA:KEELAN ASSOCIATES, P.C. and Mr. Brian Wilson, MAI, Commercial Real Estate Appraiser with Wilson Valuation LLC.

Mr. Bowen’s presentation involved a review of housing market study components and included an overview of NIFA’s market study guidelines. This presentation is available here and in the Research Center at

Patrick Bowen Presents at the Virginia Housing Credit Conference

On Thursday, October 8, 2015, Patrick Bowen presented at the Virginia Housing Credit Conference, sponsored by the Virginia Housing Coalition and held at The Westin in Richmond, Virginia. Additional panelists included Jaynell Pittman-Shaw, Senior Allocation Officer with the Virginia Housing Development Authority, and Corine Sheridan, Vice President, Director of Origination with Boston Capital. The session was moderated by JD Bondurant, the Assistant Director of Low Income Housing Tax Credit Programs at the Virginia Housing Development Authority.

The title of the session was “Virginia’s Market: What’s Hot, What’s Not” and the purpose was to provide an understanding of where markets in Virginia have been and where they are going. Patrick Bowen provided attendees with an overview of the Tax Credit rental housing market in Virginia, as well as in 10 major cities throughout the state. Information presented included an overview of collected Tax Credit rents and vacancy rates of more than 100 LIHTC projects in the state. According to Mr. Bowen, “Based on our research, there aren’t any weak rental markets among the existing LIHTC supply and several markets have vacancy rates below 2.0%.”. Mr. Bowen added, “There are many low-income housing development opportunities in the state. It’s just a matter of finding the right project to fit the market’s needs.” This presentation is available here and in the Research Center at

Patrick Bowen Presents Downtown Morgantown Retail Analysis


On Tuesday, June 30, 2015, Patrick Bowen presented findings from a Downtown Retail Feasibility Study, conducted for Main Street Morgantown in West Virginia. Below is an article written after this presentation.

Study: Parking, safety could be reasons for vacant retail space

Andrew Hesner

MORGANTOWN — A feasibility study on downtown Morgantown and the Wharf District shows that of the surveyed 374,586 square feet of retail space, more than 8 percent is vacant.

And although this is slightly lower than the regional and national averages, leasing rates for downtown retail space are “substantially lower than those reported at competitive shopping centers in Morgantown,” according to the study.

The study, presented by Patrick Bowen, owner and founder of Ohio-based Bowen National Research, on Tuesday night, June 30, to the Morgantown City Council Committee of the Whole (COW), attributes the low rates to parking, traffic and safety concerns from stakeholders, and many spaces being in poor condition.

A COW meeting is a non-voting, and discussion-based session with the council.

The more than 200-page report, solicited to Bowen by Main Street Morgantown, assesses current retail market conditions, shopping centers outside downtown and provides recommendations to fix retail problems.

Charlie McEwuen, of Main Street Morgantown, after hearing the presentation, gave the council an update as to what Main Street is doing.

“Bottom line is … according to a lot of the downtown merchants, safety is a very important factor right now, or the perception of safety.”

And although McEwuen said he feels comfortable and safe downtown, he has heard that many do not. And to address that issue, he suggested adding more lighting and addressing “probably the No. 1 topic for all downtown merchants … undesirables. … We have some homeless downtown, but most of the people that are causing concern for our customers, for a lack of better word, I’m going to call them bums — they are just people that hang out downtown and intimidate passersby.”

He recommended adding more police officers on the streets.

The study used demographic data for population, households, and employment came from ESRI, the 2000 and 2010 United States Census, Applied Geographic Solutions, U.S. Department of Commerce, and the American Community Survey, according to the report.

Downtown Housing Needs Assessment in Charleston, WV

In January of this year Bowen National Research were hired by the Charleston Area Alliance to conduct a Downtown Housing Needs Assessment in Charleston, West Virginia.  Patrick Bowen, the principal and author of the report, presented the report’s findings last Tuesday (April 21st) at the Charleston Area Alliance “Think Tank” event.  You can read more about the presentation via the link below of the article in the Charleston Gazette.

In addition, Mr. Bowen’s presentation also made television on the local news channels WCHS and WSAZ in Charleston.  You can visit the link below to view the short video.