HomeMy WebLinkAbout2026-041 Affordable Housing Strategic Toolkit UpdateJuly 10, 2026 Report No. 2026-041
INFORMAL STATUS REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Five-year staff update to Affordable Housing Strategic Toolkit
BACKGROUND:
On February 15, 2022, the City of Denton adopted the Affordable Housing Strategic Toolkit (“the
Toolkit”). This was the City’s first strategic plan to address housing affordability in our City.
Since then, the City of Denton has made progress in housing affordability strategies.
Denton’s Housing Plan is a five-year update to the Toolkit. It includes updates on the following:
• The state of housing affordability in Denton
• Income-Qualified production since 2021
• Strategic initiatives accomplished so far
• Existing Tools for affordability
DISCUSSION:
Denton’s Housing Plan covers several aspects on the topic of housing affordability in Denton, and
includes discussion and findings around the following topics:
Rental Affordability
1. About one in every three renting households in Denton pay more than half of their monthly
income towards housing.
2. To afford the median one-bedroom apartment, a household must earn $22/hour full time,
or $46,000 annually.
3. For renting households, Denton needs more affordable homes for households living below
50% of the Area Median Income.
Homeownership Attainability
4. To afford to purchase the median two-bedroom home, a household must earn over
$100,000 annually.
5. For new homeowners, Denton needs more homes for sale affordable to households living
below 100% of the Area Median Income.
Strategic Updates
6. Focus future investments on missing-middle infill housing, rather than large-scale
multifamily.
7. Focus existing policy to prioritize housing that is Affordable for Denton.
Following feedback from the Housing Plan update and FY 26-27 budget discussions, Community
Services staff will provide to Council a proposed bond spending plan based around the findings
and priorities set forth in this document.
July 10, 2026 Report No. 2026-041
EXHIBITS:
1. Denton’s Housing Plan
STAFF CONTACT:
Jesse Kent
Director of Community Services
Jesse.Kent@cityofdenton.com
REQUESTOR: Staff initiated
Denton’s Housing Plan | Page 2
Denton’s Housing Plan
Five-year update to the City of Denton’s Affordable Housing Strategic Toolkit
July 2026
Denton’s Housing Plan | Page 3
Executive Summary
Housing Affordability is a priority for the City of Denton. The City's goal is to foster diverse
housing options and opportunities affordable for everyone in our community.
On February 15, 2022, the City of Denton adopted the Affordable Housing Strategic Toolkit (“the
Toolkit”). This was the City’s first strategic plan to address housing affordability in our City.
Since then, the City of Denton has made progress in housing affordability strategies.
Denton’s Housing Plan is a five-year update to the Toolkit.It includes updates on the following:
• The state of housing affordability in Denton
• Income-Qualified production since 2021
• Strategic initiatives accomplished so far
• Existing Tools for affordability
Executive Findings:
Rental Affordability
1. About one in every three renting households in Denton pay more than half of their
monthly income towards housing.
2. To afford the median one-bedroom apartment, a household must earn $22/hour full time,
or $46,000 annually.
3. For renting households, Denton needs more affordable homes for households living
below 50% of the Area Median Income.
Homeownership Affordability
4. To afford to purchase the median two-bedroom home, a household must earn over
$100,000 annually.
5. For new homeowners, Denton needs more homes for sale affordable to households living
below 100% of the Area Median Income (roughly $345,000 sales price).
Strategic Updates
6. Focus future investments on missing-middle infill housing, rather than large-scale
multifamily.
7. Focus existing policy to prioritize housing that is Affordable for Denton.
Denton’s Housing Plan | Page 4
Defining
Affordability
Denton’s Housing Plan | Page 5
Defining Affordability
As our community continues to grow, the City of Denton is committed to fostering economic
opportunity and affordability for residents.
One way of doing this is through affordable housing initiatives.
Let’s define some common phrases in affordable housing.
Affordable:
Housing is considered Affordable if a Low-Income Household spends 30%
of their income or less on housing.
Some housing is income-qualified, which means the property owner has
to rent or sell it to a Low-Income household who has a specific level of
income, usually with a limit in price.
Other housing is naturally affordable, meaning there are no requirements
for affordability, but the natural market price is affordable for Low-Income
households anyway.
Cost Burden:Households that spend more than 30% of their income on housing are considered
cost burdened.
Severe Cost Burden:Some households spend more than 50%, or half, of their income on housing.
These households are considered severely cost burdened.
9,005
2,992
7,371
4,874
11,807
22,954
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Renters Homeowners
Cost Burden of Denton Households
Severely Cost Burdened Cost Burdened Not Cost Burdened
American Community Survey, B25140, 2024 1-Year
Denton’s Housing Plan | Page 6
Defining Affordability
Area Median Income:
Affordable Housing in the U.S.
looks at income through the
lens of area median household
income (AMI).
Typically, housing programs
focus on households at 30%,
50%, and 80%AMI. Any
household that earns below
80% AMI is considered low-
income.
For the purposes of all federal
housing programs, Denton is
considered part of the Dallas
Fair Market Region (FMR),
and household income is
considered against the
collective AMI of the region.
Dallas Fair Market Region
Denton Collin
Dallas
Ellis
Kaufman
Rockwall
Hunt
Low-Income:Household earning less than 80% AMI. In Denton, this is 48% of households.
Low-Income includes three categories:
Extremely Low-Income
Earning 30% AMI or less
In Denton, this is
16% of households.
Of those households,
79% are severely
cost burdened.
Very Low-Income
Earning 31-50% AMI
In Denton, this is
13% of households.
Of those households,
30% are severely
cost burdened.
HUD CHAS Data, 2018-2022 ACS
Low Moderate-Income
In Denton, this is
19% of households.
Of those households,
6% are severely cost
burdened.
Earning 51-80% AMI
Denton’s Housing Plan | Page 7
Defining Affordability
Income Limits: Income Limits for the Fair Market Region are updated annually by the U.S. Department of
Housing and Urban Development (HUD). The Income Limits are set according to the median household
income for the region and then adjusted for household size. Income Limits help to inform policy and qualify
households for housing programs. Below are Denton’s Income Limits for 2026.
$104,700 $96,900 $87,250 $77,550 $67,850 Annual Salary
Low-Mod
(80%)$50.34 $46.59 $41.95 $37.28 $32.62 Hourly Wage
(Full-Time)
$65,400 $60,550 $54,500 $48,450 $42,400 Annual Salary
Very Low
(50%)$31.44 $29.11 $26.20 $23.29 $20.38 Hourly Wage
(Full-Time)
$39,300 $36,350 $32,750 $29,100 $25,450 Annual SalaryExtremely
Low
(30%)$18.89 $17.48 $15.75 $13.99 $12.24 Hourly Wage
(Full-Time)
$15,080
Minimum
Wage
(Annual)
$11,929Maximum SSI
(Annual)
Rent Limits: Income-Qualified rental properties dedicate rental homes to specific income categories and
set rents based on what the highest earner in that income category can afford. Below are Denton’s rental
limits for 2026.
Number of BedroomsIncome
Limit
Category 543210
$3,101 $2,811 $2,520 $2,181 $1,817 $1,696 Low-Mod
(80%)
$1,938 $1,756 $1,574 $1,362 $1,135 $1,060 Very Low
(50%)
$1,163 $1,055 $945 $818 $681 $636 Extremely
Low (30%)
Denton’s Housing Plan | Page 8
Defining Affordability
Affordable for Denton:Income and Rent Limits are determined based on the Fair Market
Region, but Denton is a unique community with its own needs. In Denton, market rental rates are
typically lowerthanan80%AMIrent limit. This means that not all Income-Qualified rental
homes result in a cost reduction for Denton residents.
Median market rents in Denton are naturally affordable to households 65% AMI and above.50%
and 30% AMI units are Affordable for Denton.
$1,423
$2,181
$1,362
$818
$0
$500
$1,000
$1,500
$2,000
$2,500
Denton Market 80% AMI 50% AMI 30% AMI
Two-Bedroom Rent Limits (2026)
Affordable for Denton
CoStar Realty data (2026 Q1)
Denton’s Housing Plan | Page 9
Rental
Affordability
Denton’s Housing Plan | Page 10
Rental Affordability
Rental households comprise a disproportionate share of the Denton community, 48% (28,183) of Dentonhouseholds rent, compared to 33% of Denton County, and 38% statewide
1. This can partially be explainedby the fact that younger residents attending college tend to be renting households. While the studentpopulation has a significant impact on Denton’s rental market, they only account for a quarter of renters -75% of renting head of households are 25 or older
2.
Of renting households, 32% (9,005)were severely cost burdened in 2024
1.While rents have cooledsomewhat between 2024 and 2026, rents have remained unaffordable for a large portion of rentinghouseholds in Denton. A resident working full time must earn $22 an hour to afford the median one-bedroom rent in Denton
3.
3 Beds2 Beds1 BedStudio
$1,783 $1,423 $1,155 $1,007 Market Rent
$71,320$56,920$46,200$40,280Annual Income Needed
$34.29$27.37$22.21$19.37Hourly Income Needed (Full Time)
57%52%51%48%Market Rent / AMI
1American Community Survey, B25140, 2024 1-Year, 2American Community Survey, B25007, 2024 1-Year,
3CoStar Realty data (2026 Q1), 4HUD CHAS Data, 2018-2022 ACS
Renters who are at or below 50% AMI are especially cost burdened. Of these renters, 62% are severely
cost burdened4.
These households may struggle to afford other basic needs such as food, healthcare, and retirement
savings.
Note: Severely cost burdened households are also considered cost burdened. The two experiences are
separated here for clarity.
62%of renting
households under
50% AMI pay
more than half
their income in
rent each month.
0 - 30%
AMI
31 -
50%
AMI
51 -
80%
AMI
81 -
100%
AMI
> 100%
AMI
Not Cost Burdened 795 730 3,285 2,210 5,500
Cost Burdened 415 2,535 2,745 400 185
Severely Cost Burdened 5,760 1,615 260 10 0
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Cost Burden by AMI (Renting Households)
Not Cost Burdened
Cost Burdened
Severely Cost Burdened
83%
6%
11%
33%
52%
15%
4%
44%
52%
15%
84%
3%
97%
Denton’s Housing Plan | Page 11
Rental Affordability
High rental costs has a significant impact on Denton’s workforce. The ten most common occupation
types account for 22% of workers in Denton County1.
Of the ten most common occupation types, only two allow a median earner to afford the median one-
bedroom in Denton1,2.
1JobsEQ Data (2024 Q4), 2CoStar Realty data (2026 Q1)
$695 $996 $688 $2,590 $1,435 $951 $983 $775 $927 $708 $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Cashiers Customer
Service
Representatives
Fast Food and
Counter Workers
General and
Operations
Managers
Heavy and
Tractor-Trailer
Truck Drivers
Laborers and
Freight, Stock,
and Material
Movers, Hand
Office Clerks,
General
Retail
Salespersons
Stockers and
Order Fillers
Waiters and
Waitresses
Median 2 Bed: $1,423
Median 1 Bed: $1,155
Affordable Rent
(median monthly income x 30%)
Rental costs also impact many of the industries Denton residents rely on.
Median earners in childcare, construction labor, janitorial work, food service, and nursing assistance do
not earn enough income to afford the median one-bedroom in Denton1,2.
$790 $972 $876 $1,386 $1,653 $1,575 $795 $800 $918 $1,093 $-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Childcare
Workers
Construction
Laborers
Cooks,
Restaurant
Electricians Elementary
SchoolTeachers,
Except Special
Education
Firefighters Hairdressers,
Hairstylists,and
Cosmetologists
Janitors and
Cleaners,Except Maids
and
Housekeeping
Cleaners
Nursing
Assistants
Pharmacy
Technicians
Median 2 Bed: $1,423
Median 1 Bed: $1,155
Affordable Rent
(median monthly income x 30%)
Denton’s Housing Plan | Page 12
Rental Affordability
Rents in Denton tend to be naturally affordable to households above 50% AMI, which means they’re
already served by the private market.
City initiatives to support rental affordability should prioritize homes that are Affordable for Denton,
meaning affordable to households at 50% AMI or below.
Currently, these households may struggle to find affordable options on the private market, and as a result
have the highest rates of cost burden
1.
3 Beds2 Beds1 BedStudioRent Limit
$3,148$2,725$2,271$2,120100% AMI
$2,520 $2,181 $1,817 $1,696 80% AMI
$1,574 $1,362 $1,135 $1,060 50% AMI
$945 $818 $681 $636 30% AMI
$1,783 $1,423 $1,155 $1,007 Market Rent2
57%52%51%48%Market Rent / AMI
1HUD CHAS Data, 2018-2022 ACS, 2CoStar Realty data (2026 Q1),
3American Community Survey, B25031, 1-Year
It is typical for market rate to fluctuate over time.Over the last ten years, market rate in Denton has
typically been between 50% AMI and 80% AMI
3.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Denton Market $941 $1,031 $1,095 $1,130 $1,136 $1,167 $1,140 $1,279 $1,415 $1,598
80% AMI $1,268 $1,291 $1,321 $1,390 $1,496 $1,553 $1,603 $1,754 $1,901 $1,986
50% AMI $793 $808 $826 $869 $935 $970 $1,001 $1,096 $1,189 $1,241
30% AMI $476 $485 $496 $521 $561 $583 $601 $658 $714 $745
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
Two Bedroom Rent in Denton
Denton Market 80% AMI 50% AMI 30% AMI
Denton’s Housing Plan | Page 13
Rental Affordability
Rents have cooled between 2024 and 2026.
One possible explanation for this is the increase in housing production, especially multifamily
housing. This has led to a high vacancy rate in multifamily housing, reaching 17%
1. For context,
since 1960 the national vacancy rate has varied between 5-11%, averaging around 7%. In Quarter
One of 2026, the national vacancy rate was 7.3%
2.
$500
$700
$900
$1,100
$1,300
$1,500
$1,700
$1,900
Rent in Denton
Studio 1 Bed 2 Beds 3 Beds
3 Beds2 Beds1 BedStudioPeriod
$1,783 $1,423 $1,155 $1,007 2026 Q1
$1,804 $1,456 $1,170 $992 2025 Q4
$1,804 $1,458 $1,183 $994 2025 Q3
$1,874 $1,520 $1,222 $987 2025 Q2
$1,851 $1,509 $1,223 $1,000 2025 Q1
$1,840 $1,507 $1,213 $1,025 2024 Q4
$1,869 $1,540 $1,227 $1,028 2024 Q3
$1,946 $1,571 $1,266 $1,046 2024 Q2
$1,889 $1,553 $1,259 $1,063 2024 Q1
$1,926 $1,556 $1,251 $1,046 2023 Q4
$1,921 $1,568 $1,263 $1,035 2023 Q3
$1,902 $1,585 $1,271 $1,028 2023 Q2
$1,881 $1,566 $1,264 $1,010 2023 Q1
$1,870 $1,546 $1,257 $1,001 2022 Q4
$1,860 $1,550 $1,259 $979 2022 Q3
$1,845 $1,530 $1,246 $972 2022 Q2
$1,796 $1,493 $1,215 $961 2022 Q1
$1,774 $1,455 $1,190 $947 2021 Q4
$1,768 $1,445 $1,173 $937 2021 Q3
$1,738 $1,408 $1,150 $926 2021 Q2
$1,704 $1,366 $1,117 $915 2021 Q1
$1,682 $1,365 $1,108 $909 2020 Q4
$1,679 $1,355 $1,105 $905 2020 Q3
$1,676 $1,355 $1,101 $901 2020 Q2
$1,666 $1,345 $1,102 $905 2020 Q1
$1,655 $1,331 $1,084 $896 2019 Q4
$1,647 $1,331 $1,082 $894 2019 Q3
$1,629 $1,314 $1,069 $885 2019 Q2
$1,618 $1,303 $1,063 $880 2019 Q1
1CoStar Realty data (2026 Q1), 2Census Bureau, Current Population Survey/Housing Vacancy Survey
Denton’s Housing Plan | Page 14
Rental Affordability
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Multifamily Units 17,729 17,939 18,761 18,903 20,137 20,157 22,082 23,729 25,048 27,951 30,056
Renting Households 23,744 24,982 25,551 25,924 23,996 29,324 30,669 27,257 31,154 28,183
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Multifamily Units, Renting Households
CoStar Realty Data (May 2026), ACS 1-Year (DP04, 2015-2019, 2021-2024), Census (DP1, 2020)
Note: Some gap in multifamily units and renting households is expected, as some households rent single family
homes. In 2024, this was 24% of renting households, or about 6,700 households
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total Multifamily Units 17,729 17,939 18,761 18,903 20,137 20,157 22,082 23,729 25,048 27,951 30,056
Renting Households 23,744 24,982 25,551 25,924 23,996 29,324 30,669 27,257 31,154 28,183
Average Multifamily Rent $1,237 $1,266 $1,294 $1,326 $1,360 $1,421 $1,517 $1,558 $1,537 $1,486
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Multifamily Units, Renting Households & Rent
Denton’s Housing Plan | Page 15
Homeownership
Affordability
Denton’s Housing Plan | Page 16
Homeownership Affordability
Most households in Denton own their home, 52% of Denton households (30,820) are homeowners. Of
these households, 10% (2,992) were severely cost burdened in 2024
1.
In most cases, low-income households in Denton will struggle to become homeowners for the first time. To
afford the median two-bedroom home*, a household must earn over $100,000 annually
2. As of 2024, this
was out of reach for 82% of renting households
3.
*Note: This is based on a rough estimate where an affordable home is priced at three times a household’s
annual income and does not include more in-depth analysis of debt-to-income ratio, credit, or employment
history.
4 Beds3 Beds2 Beds
$400,935$319,478$305,629Market Price
$133,645$106,493$101,876Annual Income Needed
$64.25$51.20$48.98Hourly Income Needed (Full Time)
104%102%103%Market Rent / AMI
Homeownership can help a household build stability and wealth. It is an important aspiration for many
Denton residents, and a strong tool for economic mobility. In a community where homeownership is
affordable, the decision to rent or own is truly a matter of choice for as many residents as possible.
1American Community Survey, B25140, 2024 1-Year, 2Zillow Home Value Index, April 2026,
3American Community Survey S2503, 2024 1-Year
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
2 Bed $118,855 $113,853 $118,566 $129,192 $141,604 $155,750 $177,756 $201,382 $218,591 $224,121 $235,493 $268,632 $321,877 $325,915 $324,621 $316,343$307,381
3 Bed $131,167 $126,255 $128,866 $139,217 $149,581 $163,220 $184,027 $205,025 $222,146 $229,456 $239,688 $278,622 $340,886 $340,838 $340,135 $329,953$321,348
4 Bed $181,314 $177,152 $181,450 $194,918 $209,128 $226,534 $248,873 $267,916 $282,890 $289,528 $300,385 $351,551 $430,612 $427,050 $424,986 $413,350$403,355
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Typical Home Values in Denton
2 Bed 3 Bed 4 Bed
Note: Here ‘Typical’ means median value for homes within the 65th to 95th percentile
Denton’s Housing Plan | Page 17
Homeownership Affordability
0 - 30% AMI 31 - 50% AMI 51 - 80% AMI
81 - 100%
AMI > 100% AMI
Not Cost Burdened 425 1,070 2,165 2,400 14,775
Cost Burdened 70 515 1,065 690 1,110
Severely Cost Burdened 720 445 310 20 20
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
Cost Burden by AMI (Homeowning Households)
Note: Severely cost burdened households are also considered cost burdened. The two experiences are
separated here for clarity.
Low-income
homeowners have
lower rates of
severe cost
burden (22%)
than
low-income
renters (42%)1.
Working professionals in Denton may find it difficult to become homeowners.
Degreed and licensed professionals such as elementary school teachers, civil engineers, registered
nurses, accountants, plumbers, and electricians earning median salaries cannot typically afford a typical
two-bedroom home in Denton on their salary alone
2,3.
$237,619 $162,739 $276,931 $166,358 $198,370 $188,947 $187,574 $178,838 $253,718 $279,053$0
$100,000
$200,000
$300,000
$400,000
$500,000
Accountants
and Auditors
Child, Family,
and School
Social
Workers
Civil
Engineers
Electricians Elementary
School
Teachers,
Except
Special
Education
Firefighters Human
Resources
Specialists
Plumbers,
Pipefitters,
and
Steamfitters
Police and
Sheriffs
Patrol
Officers
Registered
Nurses
Typical 2 Bed: $305,269
Typical 3 Bed: $319,478
Affordable Home Price
(median annual income x 3)
1HUD CHAS Data, 2018-2022 ACS, 2JobsEQ Data (2024 Q4), 3Zillow Home Value Index (April 2026)
Denton’s Housing Plan | Page 18
Progress on
Toolkit
Production Goals
Denton’s Housing Plan | Page 19
Progress on Toolkit Production Goals
Since the Toolkit was published in 2021, Denton has experienced significant growth, especially
in the world of affordable multifamily housing.
Since 2021, 2,867 income-qualified rental homes have been completed, with 1,489 more under
construction.
However, only 425 (15%) of those completed homes are affordable for Denton. Of those under
construction, only 201 (13%) are affordable for Denton.
Want to learn more?
Check out the ‘Affordable Rental Map’
on the City website!
Westview Heights at Denton
The Venn
The Beverley
The Mark at Denton II
Discovery Park
North Elm
The Hightone
The Weldon
Woodlands at Denton
Square 9
16Ten East
Hudson at Pecan Creek
Eden Village
The Reserves at Magnolia
Arbor Ranch
Vintage Ranch
Stella Haven
Ridgecrest
Denton Grove
Pebblebrook Parkside
Mayhill Crossing
Elan Denton
Birchway Denton
Prima Denton
Eighteen51 Brinker
Under Construction
Complete
Denton’s Housing Plan | Page 20Denton’s Housing Plan | Page 20
42
6
11
14
55
21
20
27
16
44
17
99
29
9
15
124
276
207
161
243
188
26
106
191
143
55
169
147
55
114
102
135
132
207
8
131
187
157
22
167
161
154
140
37
150
0 50 100 150 200 250 300 350 400 450
Eighteen51 Brinker
Denton Grove
Vintage Ranch
Pebblebrook Parkside
Hudson at Pecan Creek
Ridgecrest
The Reserves at Magnolia
Mayhill Crossing
The Hightone
The Beverley
Westview Heights at Denton
Birchway Denton
Square9 Apartments
16Ten East
Discovery Park
Woodlands of Denton
Elan Denton
Income-Qualified Rental Homes Completed Since 2021
< 30% AMI Units < 50% AMI Units < 80% AMI Units Unrestricted Units
Denton’s Housing Plan | Page 21Denton’s Housing Plan | Page 21
12
15
41
23
35
45
30
154
167
140
208
41
180
252
111
153
207
139
230
225
111
0 50 100 150 200 250 300 350 400 450 500
Mark at Denton II
Prima Denton
The Weldon
The Venn
Stella Haven
North Elm
Arbor Ranch
Eden Village
Income-Qualified Rental Homes Under Construction
< 30% AMI Units < 50% AMI Units < 80% AMI Units Unrestricted Units
Denton’s Housing Plan | Page 22Denton’s Housing Plan | Page 22
Income Qualified Multifamily since 2021
< 80% AMI
Units
< 50% AMI
Units
< 30% AMI
UnitsTotal Units
Property Tax
ExemptFinancing ToolsStatusDevelopment
124140270100% ExemptCompleteEighteen51 Brinker
27600276Not Exempt4% Housing
Tax CreditCompleteDenton Grove
20700207100% Exempt4% Housing
Tax CreditCompleteVintage Ranch
161550216Not Exempt4% Housing
Tax CreditCompletePebblebrook
Parkside
243042285100% Exempt4% Housing
Tax CreditCompleteHudson at Pecan
Creek
188210416100% ExemptCompleteRidgecrest
2620660Not Exempt9% Housing
Tax CreditCompleteThe Reserves at
Magnolia
106270264100% ExemptCompleteMayhill Crossing
19100378100% ExemptCompleteThe Hightone
143160316100% ExemptCompleteThe Beverley
554411132100% Exempt9% Housing
Tax CreditCompleteWestview Heights at
Denton
16900336100% ExemptCompleteBirchway Denton
147170325100% ExemptCompleteSquare9 Apartments
55990308100% ExemptComplete16Ten East
114290283100% ExemptCompleteDiscovery Park
10290148100% ExemptCompleteWoodlands of
Denton
135150300100% ExemptCompleteElan Denton
2,442366594,520Total Complete
15400307100% ExemptUnder
ConstructionMark at Denton II
167410415100% ExemptUnder
ConstructionPrima Denton
14000279100% ExemptUnder
ConstructionThe Weldon
208230461100% ExemptUnder
ConstructionThe Venn
4135128850% Exempt9% Housing
Tax Credit
Under
ConstructionStella Haven
180450450100% ExemptUnder
ConstructionNorth Elm
2523015297100% Exempt4% Housing
Tax Credit
Under
ConstructionArbor Ranch
11100222100% ExemptUnder
ConstructionEden Village
1,253174272,519Total Under Construction
Denton’s Housing Plan | Page 23
855
260
2,442
425
0
500
1,000
1,500
2,000
2,500
3,000
< 80% AMI Rental
Homes
< 50% AMI Rental
Homes
Progress on Toolkit Rental Production
Goals
Goal Complete
Progress on Toolkit Goals
The Toolkit set goals for the production of income-qualified housing by the year 2030. These goals were
primarily focused on housing for households below 80%and 50% AMI levels. The goals were not solely
for City-funded housing initiatives, but for the community overall.
As of 2026, the Toolkit goals for rental housing have been met and exceeded. This was primarily
accomplished by large multifamily developments funded by the federal low-income housing tax credit
program (“LIHTC”) and tax-exempt partnerships with the Denton Housing Authority.
However, very little progress has been made on the Toolkit goals for affordable homeownership. As of
2026, the only project under construction is Habitat for Humanity of Denton County’s Habitat Village,
which consists of 35 homes in Southeast Denton for Low-Income Homeownership.
One reason for the difference between progress on rental and homeownership goals is the difference in
tools available. Rental housing is funded at the federal level through the LIHTC program and incentivized
at the state level by property tax exemptions under Chapters 303, 392 and 394 of the Local Government
Code. Currently, there are no equivalent funding programs for the construction of affordable
homeownership opportunities.
For more information on the programs that support affordable housing development in Denton, please
refer to the “What’s in our toolkit?”section of this document.
Note: Here ‘< 50% AMI Rental’ includes those restricted to < 30% AMI as well.
286% Complete
163% Complete 0% Complete 0% Complete
315 105000
500
1,000
1,500
2,000
2,500
3,000
< 80% AMI Ownership
Homes
< 50% AMI Ownership
Homes
Progress on Toolkit Ownership Production
Goals
Goal Complete
Denton’s Housing Plan | Page 24
Progress on Toolkit Goals
The goals set in the Toolkit were based on the 2021 Needs Assessment, which relied on pre-
pandemic data. This demand estimate presumed pre-pandemic rates of growth in Denton county
and pre-pandemic housing costs. The housing market in Denton County has seen dramatic change
in the six years since the COVID-19 pandemic.
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
2 Bed $118,855 $113,853 $118,566 $129,192 $141,604 $155,750 $177,756 $201,382 $218,591 $224,121 $235,493 $268,632 $321,877 $325,915 $324,621 $316,343$307,381
3 Bed $131,167 $126,255 $128,866 $139,217 $149,581 $163,220 $184,027 $205,025 $222,146 $229,456 $239,688 $278,622 $340,886 $340,838 $340,135 $329,953$321,348
4 Bed $181,314 $177,152 $181,450 $194,918 $209,128 $226,534 $248,873 $267,916 $282,890 $289,528 $300,385 $351,551 $430,612 $427,050 $424,986 $413,350$403,355
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Typical Home Values in Denton
2 Bed 3 Bed 4 Bed
COVID-19
Pandemic
Furthermore, the goals set in the Toolkit did not factor cost burden into the need assessment model.
This means the goals focused on income levels that were largely served naturally by the market, and
do not experience high rates of cost burden.
Future housing need estimates for the City of Denton should focus on reducing cost burden, and on
housing needs that are not generally served by the market.
Need estimates should be updated regularly to reflect changes in the market and growth of the City
and rightsized to new housing demand of the city overall.
Zillow Home Value Index, April 2026,
Denton’s Housing Plan | Page 25
Progress on
Toolkit
Strategies
Denton’s Housing Plan | Page 26
1.A 1.B
2.A 2.B 2.C
3.A 3.B 3.C 3.D
Strategy One: Infill Development
Strategy Two: Zoning Incentives
Strategy Three: Increase Capacity and Resources
Strategy Four: Preservation of Affordability
Strategy Five: Increase Access to Information
4.A 4.B 4.C 4.D 4.E
5.A 5.B 5.C
Complete
Incomplete
2021 Toolkit Strategies
As of 2026, nine of the seventeen activities outlined in the Toolkit have been implemented.
Many of the activities that have not been completed currently lack an appropriate funding source.
Some could be funded by the 2023 Bond funds, while others may not be an appropriate use for
one-time bond funding investment.
Progress on Toolkit Strategies
Denton’s Housing Plan | Page 27
The Toolkit called for a development code amendment to make
small homes for infill development easier to build in Denton.
These amendments were brought for consideration by the City of
Denton Planning Department and approved by City Council in the
Missing Middle Amendment on January 13, 2026 (DCA25-001a).
However, there is still opportunity to develop guidance and
resources to encourage the construction of missing middle
homes.
Develop Small Home
Communities Program
1.A
The Toolkit also called for a development code amendment to
make Accessory Dwelling Units (ADU’s) easier to build in Denton.
These amendments were also approved as part of the Missing
Middle amendment (DCA25-001a).
However, there is still opportunity to develop guidance and
resources to encourage the construction of ADU’s.
Develop Accessory
Dwelling Unit Program
1.B
Strategy One:Infill Development
2 / 2 activities complete
Progress on Toolkit Strategies
The Missing Middle Amendment made the following changes to
the Denton Development Code:
Townhomes:
• Allowed for smaller lots in mixed-use districts
• Removed a maximum units restriction
• Adjusted open space requirements
Accessory Dwelling Units:
• Expanded by-right zones to include all mixed-use districts
• Clarified attached ADU’s and side yard ADU’S as allowable
• Adjusted maximum allowable size
• Removed additional parking requirement
Denton’s Housing Plan | Page 28
The Toolkit called for an affordable overlay district offering zoning
relief in exchange for affordability in new construction. Rather than
create this as an overlay district for only certain parts of the City,
Council approved the Affordability Incentive Program housed in
Section 2.12 of the Denton Development Code on October 15, 2024
(DCA24-0010a).
This program was amended for greater accessibility and to prioritize
Affordable for Denton units on April 7, 2026 (DCA26-001a). Staff
continue to administer and monitor this program and will bring any
identified opportunities for improvement for consideration.
Zoning-Based
Affordability
Incentives
2.A
The Toolkit called for tools to reach out to developers and incentivize
affordable housing production. Staff has developed an Affordability
Incentive hub page on the City’s website and has begun attending
Developer town halls and residential Pre-Application Conferences
with the Development Services department to better interface with
developers and promote affordability incentives.
Marketing to
Development
Community
2.B
Staff completed cross-department trainings reviewing toolkit initiatives
in 2024.
Staff training for
Toolkit Initiatives
2.C
Strategy Two:Zoning Incentives
3 / 3 activities complete
Progress on Toolkit Strategies
The Affordability Incentive Program (Section 2.12)
offers nine different zoning incentives such as parking
reductions, minimum lot size reductions, and height
increases. To qualify, a residential development must
include units that are Affordable for Denton.
Denton’s Housing Plan | Page 29
The City provided a one-time Non-profit Capacity Building Grant in
2023 using American Rescue Plan Funds.
Non-profit Capacity
Building Grant
3.A
The Toolkit called for a package of financing, land options, technical
assistance, and streamlined permitting incentives for developers.
Funding has not been allocated for financing or land options. However,
City Council has approved a Zoning Incentive Program (2.A), created
the Denton City Public Facility Corporation to provide a route for
property tax exemption, and updated the Resolution of Support Policy
for Low-Income Housing Tax Credit applicants. These incentives are
designed to be used together, generally sharing a common application
process, requirements and eligibility criteria.
Affordability
Incentive Package
3.B
Strategy Three:
Increase Capacity & Resources
2 / 4 activities complete
The Toolkit called for the creation of a pre-development financing
program in the form of a revolving-door loan fund. Although pre-
development was provided as part of the non-profit capacity building
grant (3.A) a long term loan fund has not been established.
Pre-Development
Financing Program
3.C
The Toolkit called for a special fund within the Homebuyer Assistance
Program to serve households with Housing Choice Vouchers in
partnership with the Denton Housing Authority and their existing
homeownership program.
While the Homebuyer Assistance Program has successfully assisted
Housing Choice Voucher Holders become homeowners, a set-aside
fund has not been created due to the extremely limited funding for the
Homebuyer Assistance Program.
Housing Choice
Voucher
Homeownership
Program
3.D
Progress on Toolkit Strategies
Denton’s Housing Plan | Page 30
Strategy Four:
Preservation of Affordability
The Toolkit called for an incentive program to support the creation of a
Community Land Trust (CLT). A Community Land Trust is a nonprofit
entity with the purpose of creating and preserving homes for low-
income homeownership. Funding has not been allocated for a
Community Land Trust.
Community Land
Trust Incentive
Program
4.A
The Toolkit called for a program that would fund repairs on rental
single-family rental homes in exchange for a commitment to lease
that home at an affordable rate for a period of time.
On February 21, 2023, the City created a Rental Repair Program
which offers funding for essential repairs to single-family rental homes
(four or fewer units) in exchange for leasing the home to low-income
households at affordable rates (80% AMI) for the next five years.
However, this program has seen low utilization.
Landlord Rental
Maintenance
Program
4.B
The Toolkit called for the creation of a homeownership program for
City employees, potentially in partnership with local universities and
extended to the employees of those universities. Funding has not
been allocated for an Employee Homeownership Program.
Employee
Homeownership
Program
4.C
1 / 5 activities complete
Progress on Toolkit Strategies
The Toolkit called for an expansion of the existing Homebuyer
Assistance Program, which offers down payment assistance to low-
income first-time homebuyers. This program is funded with federal
HOME funds, and no further funding has been allocated for an
expansion.
Down Payment
Assistance
Program
Expansion
4.D
The Toolkit called for the establishment of a land bank that would
reserve specific properties for affordable housing development. No
funding has been allocated for the creation of a land bank.
Land Banking4.E
Denton’s Housing Plan | Page 31
Progress on Toolkit Strategies
The Toolkit called for a program to provide grant funding to a nonprofit
providing legal assistance or rental assistance to residents facing
eviction. Funding has not been allocated for an Eviction Prevention
program.
Eviction
Prevention &
Education Program
5.A
The Toolkit called for the creation of an internal use only online
mapping tool for the assessment of properties for land banking. This
was created, but not utilized as funding was not allocated for land
banking.
However, staff has maintained the affordable rental map, which offers
residents the ability to search all income-qualified rental properties
with an interactive map, contact information, and income eligibility
information.
Interactive
Mapping Tool
5.B
The Toolkit called for a program with Denton Housing Authority (DHA)
to develop an education campaign to market Housing Choice
Vouchers to property owners and increase usage in areas of
opportunity.
This has not been completed, however, DHA reports the cooling
rental market has increased voucher acceptance organically.
Landlord
Education Program
5.C
Strategy Five:
Increase Access to Information
1 / 3 activities complete
Additionally, the City has partnered with local lenders and
realtors to offer free ‘First Time Homebuyer 101’ classes on
a bi-monthly basis. The class overviews the process of
buying a home, as well as different assistance programs that
can help homeownership more affordable and attainable for
first time homebuyers.
Denton’s Housing Plan | Page 32
What’s in
our toolkit?
Denton’s Housing Plan | Page 33
What’s in our toolkit?
The Business of Affordable Housing
Affordable Housing development in the United States is a business, much like any other. The
ultimate goal is to reduce the cost to live in a home as much as possible, but that can only be
accomplished by offsetting costs to construct or manage the housing. Affordability incentive
programs target different parts of a business plan to make that balance possible. Below is an
example of what that balance might look like for an apartment complex.
Programs like the Low-Income Housing Tax Credit (LIHTC) and HOME Investment Partnerships
(HOME) programs directly provide funds to construct or rehabilitate housing. This decreases
the amount of debt the developer must take on to complete the project, decreasing their mortgage.
Zoning Incentive programs like the City’s Section 2.12 program indirectly offset construction
costs (offsetting the mortgage) by providing parking reductions, and they increase rental revenue
by allowing more homes to be built on a piece of land.
There are several tools in Texas to create property tax exemptions. These can be established by
Public Housing Authorities, Public Facility Corporations, Housing Finance Corporations, or
Community Housing Development Organizations.
Some programs impact the household’s housing cost directly. The Housing Choice Voucher
program subsidizes a household’s rent, so the home is affordable to the household, but the
property owner still receives fair market rent. Homebuyer Assistance Programs operate in a similar
way for homebuyers, providing down payment assistance up front as a grant or forgivable loan.
Other programs provide maintenance for housing that is already affordable, such as the City’s
Minor Home Repair Program.
These tools work together to reduce cost burden for residents. Most have a cost associated with
them, that governments and taxpayers must account for.
Denton’s Housing Plan | Page 34
What’s in our toolkit?
Since approving the Toolkit in 2022, the City of Denton has created and optimized several tools to
improve housing affordability.Let’s outline some of the key tools the City uses to address housing.
Housing Tax Credit Support Policy:
The Low-Income Housing Tax Credit (“LIHTC” or “HTC”) Program is the biggest funder of affordable
rental homes in the U.S. The HTC Program is funded federally and administered by the states. In Texas,
the program is administered by the Texas Department of Community Affairs (TDHCA). The HTC Program
provides upfront equity to fund the construction of multifamily affordable housing, up to $20 million dollars
per project.
The City of Denton does not fund the HTC Program directly, or directly determine who is awarded funding.
However, HTC applicants generally need a Resolution of Support (or of No Objection) from their local City
Council.
The City of Denton has a policy, application process, and scoring matrix for all HTC applicants seeking a
resolution from City Council. Through this policy, the City can set local priorities and standards for HTC
funded developments built in our community. On December 2, 2025, City Council approved amendments
to this policy that prioritized Affordable for Denton units (ID 25-2169).
Affordability Incentive Program:
The Affordability Incentive Program, located in Section 2.12 of the Denton Development Code, offers nine
different zoning incentives for residential developments that commit to leasing or selling some of their
homes to low-income households at affordable rates.
This program can be used for any new construction residential development, single family or multifamily,
big or small, homebuyer or rental. It allows residential developers to access helpful zoning incentives such
as reductions to minimum parking requirements or minimum lot sizes in exchange for committing some of
their new homes as affordable housing.
HOME Investment Partnership Program Funds:
The City is a Participating Jurisdiction for the federally funded HOME Investment Partnership Program
(HOME). HOME is the largest federal block grant to state and local governments designed exclusively
to create affordable housing for low-income households. The City receives an allocation of HOME funds
on an annual basis (typically no more than $450,000) to fund affordable housing programs. These funds
are awarded through an annual grant process advised by the Community Services Advisory Committee.
Property Tax Exemptions:
The State of Texas offers several tools to establish property tax exemptions for affordable housing
developments. The City can grant property tax exemptions through Denton City Public Facility
Corporation (DCPFC), a nonprofit entity operated by the City of Denton.
The DCPFC was created in 2024, and in 2025 it adopted a scoring matrix to evaluate the affordability
offered by a development in exchange for the tax exemption.
Certain nonprofits in Denton can also grant property tax exemptions for affordable housing developments
they’re an owner of. Of these nonprofits, Denton Housing Authority is the most active in the tax-exempt
development market.
Denton’s Housing Plan | Page 35
What’s in our toolkit?
Homebuyer Assistance Program:
The City uses HOME funds to operate a Homebuyer Assistance Program (HAP) which offers downpayment assistance of up to $50,000 for low-income first-time homebuyers.
Due to limited funding, this program typically assists fewer than five households per year and is regularlyout of funds.
Minor Home Repair Program:
The City uses funds from the federal Community Development Block Grant (CDBG) Program to operate aMinor Home Repair Program which assists low-income homeowners living in the City of Dentoncomplete minor repairs that, if left unattended, would jeopardize the health and safety of occupants.Typical repairs include HVAC repairs, plumbing and roofing repairs, and accessibility improvements.
This program has an annual budget of approximately $450,000 and typically serves about 50 householdsin a year that might otherwise have to leave their home.
Rental Repair Program:
The City’s Rental Repair Program offers funding for essential repairs to single-family rental homes(four or fewer units) in exchange for leasing the home to low-income households at affordable rates (80%AMI) for the next five years.
This program was funded at approximately $45,000 and has served four households since its creation in2023.
Development Fee Grant Program:
The Development Fee Grant Program offers grant funding to nonprofits building affordable housing ornonprofit facilities to help cover development fees.
This program was funded at approximately $100,000 and has assisted two projects since its creation in2020.
Housing Choice Vouchers:
The Denton Housing Authority (DHA) is a municipal housing authority of the City of Denton. DHA operatesas an independent nonprofit, but the City of Denton mayor maintains the authority over boardappointments. DHA operates the local Housing Choice Voucher program, administering 1,435 vouchersacross the city and the surrounding jurisdiction.75% of a public housing authority’s Housing ChoiceVouchers must be issued to extremely low-income households, while the remaindercanbeissuedtovery low-income households.
A Housing Choice Voucher is a type of long-term tenant-based rental assistance that ensures ahousehold pays only 30% of their income towards their housing costs, while the housing authority issuesthe remainder of the payment. Housing Choice Vouchers are specifically designed to be utilized on theprivate market according to the household's choice. However, in the state of Texas property ownersmaintain the right not to lease to a voucher holder, which can limit choice for households.
There are approximately 6,970 extremely low-income renting households in Denton
1, meaning DHA canissue approximately one voucher for every five extremely low-income households in Denton.
DHA also operates a homeownership program, which allows households with a housing choice voucher tospend their voucher on a mortgage payment for the first five years of the mortgage.
1HUD CHAS Data, 2018-2022 ACS
Denton’s Housing Plan | Page 36
Supportive Housing
Supportive Housing is a type of affordable housing that provides long term cost subsidy and supportive
services for households that would otherwise struggle to live independently. Supportive Housing
programs are typically for a specific subpopulation, such as people with disabilities or people exiting
homelessness. Programs for people with disabilities who are exiting chronic homelessness are described
as Permanent Supportive Housing (PSH).
A Supportive Housing program can be site-based or scattered-site, meaning the housing can either be
provided at one location, or be provided to individuals renting on the private market. Supportive housing
is a type of permanent housing,meaning there is no time limit on how long a household can stay in a
Supportive Housing program. It is designed to support the long-term health and housing stability of the
household, for as long as they need it.
Supportive Housing is a program, not a housing type,meaning the barrier to creating more Supportive
Housing is not housing stock, but long-term operational funding for rental subsidy and services. Even
when the housing provided is owned by a non-profit service provider, revenue is still needed to cover the
costs of utilities, insurance, maintenance, and staffing.
For this reason, most Supportive Housing programs require a source of ongoing rental subsidy, usually
Project Based Vouchers from a Public Housing Authority or grant funding from the federal Continuum of
Care program.
$21,718
$26,803
$36,403
$46,200
$56,920
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Average Social Security
Disability Income
Median Earnings of
Disabled Worker
Median Earnings of
Non-Disabled Worker
Supportive Housing Cost Gap
Annual Income
Income Needed to Afford Median 1-Bedroom
Income Needed to Afford Median 2-Bedroom
As of June 2026, there are two scattered-site PSH programs funded through the Continuum of Care
Program, although their funding may be at risk as HUD shifts funding priorities for the Continuum of Care
program towards Transitional Housing.
Denton Affordable Housing Corporation (DAHC), a local nonprofit, operates a Section 811 program,
which is a Supportive Housing program for people with disabilities.
According to the Texas State Affordable Housing Corporation, it is crucial for site-based PSH programs to
build all three layers of funding – construction, rent subsidy, and wraparound services, all at the same
time in order to be successful.
Social Security Administration (May 2026), American Community Survey, S1811, 2024 1 Year,
CoStar Realty Data (2026 Q1)