The challenge of developing affordable housing for middle-income renters is complex due to limited financing options and the inability to use federal low-income housing tax credits (LIHTCs). Developers face significant hurdles in securing funding, as conventional loans and equity investors often find middle-income projects financially unviable. In the article, zoning changes, tax abatements, and new construction methods are highlighted as three possible solutions.

https://urbanland.uli.org/issues-trends/new-tools-help-build-new-housing-for-middle-income-residents