Low Income Cap Rate

Garza Central Appraisal District

Low Income Housing Cap Rate Information

 

According to House Bill 3546 the Appraisal District shall give public notice, including posting on the District’s website, the capitalization rate to be used that year to appraise property under this section.  Pursuant to Section 11.1825 (r) of the Texas Property Tax Code, the Garza Central Appraisal District gives public notice of the capitalization rate to be used for the 2021 tax year to value properties under this section.  The Chief Appraiser must appraise these properties using the income method; considering the restrictions on who may rent the property and the rent rate.  Rent restrictions will affect the amount of rent charged and who is qualified to rent.  Both of these can have an effect on the valuation of the property.  An overall capitalization rate between 7% and 10% will be used to appraise these properties.  Properties will be reviewed on an individual basis and other adjustments will be made when necessary according to information provided to the Garza CAD and Chief Appraiser.