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Rainbow City, Alabama: Three Decades of LIHTC-Funded Affordable Housing
CATEGORY
Affordable Housing
DATA
LIHTC Projects
Median Income
Racial Distributions
Population
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Affordable Housing
LIHTC Projects
Median Income
Racial Distributions
Population
Rainbow City, Alabama, is a small city with a population of 10,866 as of 2022. The city has a Low-Income Housing Tax Credit (LIHTC) funded affordable housing inventory of 144 units, all of which are designated as low-income units. This inventory represents approximately 3.46% of the city's estimated housing stock of 4,163 units.
Rainbow City has received $774,828 in project tax credits through the LIHTC program. With three projects, this translates to an average of $258,276 in federal funding per project. The average federal funding per unit is $5,381. Rainbow City holds 0.44% of Alabama's total LIHTC funding allocation.
The city's affordable housing development spans from 1993 to 2006. The first LIHTC project, Rainbow Apts, was completed in 1993, and the most recent, Greystone, was finished in 2006. The 2000s saw the most affordable housing development activity in Rainbow City.
The LIHTC inventory in Rainbow City offers a mix of unit types. There are no efficiency units, but the inventory includes 32 one-bedroom, 7 two-bedroom, 18 three-bedroom, and 6 four-bedroom units. This distribution accommodates various family sizes within the affordable housing stock.
Rainbow City's population has grown modestly over the past decade, increasing from 9,840 in 2013 to 10,866 in 2022. The median income has fluctuated, rising from $58,179 in 2013 to $67,917 in 2021, before decreasing to $56,830 in 2022.
Racial demographics have shifted slightly. The white population decreased from 91% in 2013 to 81% in 2022. The Black population increased from 5% to 8%, and the Hispanic population from 1% to 4% during the same period. The Asian population also increased from 1% to 3%.
No new LIHTC projects have been built in Rainbow City in the last decade. However, the demographic changes, particularly the recent decrease in median income, may indicate a potential need for additional affordable housing options in the future.
Rainbow City's LIHTC funded affordable housing inventory represents a small but significant portion of its housing stock. The city has used federal funding to create 144 low-income units across three projects. The diverse unit mix serves various household sizes. While no new LIHTC projects have been developed recently, demographic trends, including population growth and income fluctuations, suggest that the city may need to reassess its affordable housing needs in the coming years to meet the evolving demands of its residents.
