Chicago Area Fair Housing Alliance

Own rental property in the Chicagoland area? Help reduce your taxes by participating in the Section 8 Housing Choice Voucher Tax Savings Program!

What is the tax savings program?  The Housing Opportunity Tax Savings program is a tax abatement for landlords who rent to Section 8 tenants in "opportunity areas."

Who qualifies for the tax savings?  The program is limited to landlords in the six-county Chicago metropolitan area, metropolitan Rockford and Metro East (Madison and St. Clair counties).  There are other restrictions to eligibility. The apartment must be rented to a Section 8 tenant in an "opportunity area." 

What is an "opportunity area?"  Opportunity areas is defined by the state law establishing the program.  Briefly, an opportunity area has two components: 1. Township, and 2. Census Tract.  If the property is located in a qualified township and a qualified census tract, it may be eligible for the tax savings program.

How do I know my property is in an opportunity area?
See the bottom of this page for .pdf maps for the City of Chicago, Suburban Cook County, Lake County, and Kane County. Maps for Will, DuPage, and McHenry Counties are pending.

Who runs the tax savings program? The program is administered by the local housing authorities in the Chicago metropolitan area, the Rockford area and Metro East.  Not all housing authorities are able to use the program.. 

How much money will I save?  The program is designed to rebate up to 19% of the property tax on the qualified unit.  The actual amount will vary depending on the equalized assessed value of the property and the local tax rate.  Up to 20% of the units in the building may qualify if rented to Section 8 tenants.  For buildings under 10 units, the limit is 2 units. 

When will I get the rebate?  The abatement will show up on the second installment of your property tax bill for the tax year that you are awarded the abatement.  Remember, property tax bills in Illinois are paid the following year. 

Is there a time limit on the abatements?  A property cannot receive an abatement for more than 10 years.

Additional Information:
The Section 8 Savings Program is based upon the Illinois state law, Public Act 93-0316. A .pdf of the statue, 35 ILCS 200/18-173, is at the bottom of this page.

The program is mandated by state law for Illinois counties that have over 200,000 residents. Currently the following counties qualify: Cook, DuPage, Kane, Lake, Madison, McHenry, St. Clair, Winnebago and Will.

The Section 8 Savings program is an important tool to help Section 8 tenants find apartments in areas with low poverty and high employment.  It is a tax incentive for landlords in "opportunity areas" to accept vouchers.  Please see the FAQ for more information.

Housing Authorities that administer Section 8 Housing Choice Vouchers (tenant-based vouchers) within these counties should be prepared to administer their part of the program.  The law provides for the housing authorities to administer the application process and to transmit the information to the county clerk's office that handles tax extensions and abatements.

Qualified Areas:  The law refers to 2 geographic criteria in order for a landlord's property to qualify for the tax incentive: 1) Qualified Township and 2) Low-Poverty Census Tract.