Restricted or market-rate: which unit should you pick?
If you qualify for an income-restricted unit, you may have a real choice in the same new building: a capped-rent unit, or a market-rate unit with a deep special. They often have the same finishes and amenities. The difference is in the rules and in year two. Our buildings with income-qualified units carry the label “Some units: essential housing (income-qualified),” and we price both unit types on the same basis.
How the two compare
| Factor | Income-restricted unit | Market-rate unit |
|---|---|---|
| Rent | Capped by the program (e.g., 60% AMI max 2BR $1,815, TDHCA 2026) | Base rent set by the community |
| Move-in special | Sometimes excluded | Often available (board median 10.8 weeks, Oct 25, 2026) |
| Income test | Maximum income plus a minimum | Minimum only, often about 3x rent |
| Recertification | Usually annual | None |
| Year two | Follows the program cap | Prices from base rent |
| Finishes and amenities | Usually the same | Same |
A worked comparison
Simple numbers for a 2-bedroom, rent only:
| Restricted (60% AMI) | Market-rate | |
|---|---|---|
| Rent | $1,815 cap | $2,200 base, 10 weeks free on 12 months |
| Year-one monthly | $1,815 | $1,777 net effective |
| Year two | Program cap, adjusted annually | $2,200 at 0%; $2,266 at +3% |
| 24-month rent (0%, cap unchanged) | $43,560 | $47,724 |
The market-rate unit is slightly cheaper in year one here, and about $4,164 more over 24 months. If you’d stay two years, the restricted unit wins in this example. If you’d move after one year, they’re close. Our net effective rent guide shows how the market-rate number is calculated.
What it means for you
Compare year two, not just year one. A capped rent doesn’t reset to a higher base at renewal.
Annual recertification
Restricted units usually require you to recertify household income and size each year. If your income rises above the limit, the program rules decide what happens. Market-rate units have no recertification, but renewals price from base rent.
Qualifying for each
The restricted unit has a maximum income and usually a minimum. The market-rate unit has only a minimum, often about 3x the rent, tested on base rent at most buildings. On a $2,200 base, 3x is $79,200 a year, which may exceed the 60% AMI limit for your household. See income requirements for how buildings test income.
What we check
For each building, we confirm whether restricted units get the special, the current rent cap for the unit’s tier, the recertification rules, and whether the unit’s finishes match market-rate units. Then we show both options with 24-month totals so you can choose.
