Low-Income Rental Classification (LIRC) Program

Minnesota’s Low-Income Rental Classification (LIRC) program provides a reduced property tax class rate for qualifying rental housing. Under Minnesota Statutes 273.128, properties that meet income and affordability criteria may receive a reduced 4d(1) tax classification on eligible units, resulting in lower property tax obligations.

Program Overview

Eligibility Criteria for Qualifying Properties

To qualify for LIRC, at least 20% of total rental units must meet one or more of these criteria:

Project-based Section 8
Low-Income Housing Tax Credits (LIHTC)
Rental assistance units financed through USDA Rural Housing Service
Rent and income restrictions at or below 60% Area Median Income, recorded against the property

Eligible units qualify for the 4d(1) tax class rate of 0.25%. The remainder of the property is taxed at the regular rental class rate of 1.25%. Market value is assessed using unrestricted market rents.

For full program details, see the LIRC Program Guide.

Application Process and Forms

Applying for LIRC

To receive the reduced tax class rate, property owners must apply annually.

A non-refundable fee of $10 per qualifying unit is required (maximum $150).
The application deadline is March 31 each year for taxes payable the following calendar year.
Late applications will not be accepted.

For more program guidance, see the LIRC Program Guide.

Application Forms:

Initial Application Form (for new applicants only): [PDF Fillable] | [RTF Fillable]
Renewal Application Form (for returning participants): [PDF Fillable] | [RTF Fillable] (Returning applicants will receive a property-specific reapplication cover letter by mail.)

Resolution Requirement for Certain Initial Applicants

For the 2025 LIRC application cycle, if your property is located in one of the following cities or towns, you must include a signed resolution from the city or town approving the Applicant’s ability to submit an Initial Application to Minnesota Housing:

Blackduck
Fort Snelling
Lexington
Meadowlands
Onamia

These are the cities and towns where the net tax capacity of the 4d(1) properties exceeds 2% of the total net tax capacity in the city or town. For more information, refer to the "Initial Application Local Government Resolution Requirement" section of the LIRC Program Guide.

To assist with this requirement, the following resources are available: