# Administrative, Procedural, and Miscellaneous

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A42c5dc2724787a49

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

Part III
Administrative, Procedural, and Miscellaneous

26 CFR 601.601: Rules and Regulations
(Also Part 1, §§ 25, 143, 6a.103A-1(b)(4), 6a.103A-2(f)(5).)

Rev. Proc. 2024-21

SECTION 1. PURPOSE
This revenue procedure provides issuers of qualified mortgage bonds, as defined in
§ 143(a) of the Internal Revenue Code (Code), and issuers of mortgage credit
certificates, as defined in § 25(c), with (1) the nationwide average purchase price for
residences located in the United States, and (2) average area purchase price safe
harbors for residences located in statistical areas in each state, the District of Columbia,
Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and
Guam. Section 7 of this revenue procedure requests comments on the available data
and method used for calculating the average area purchase price safe harbors.

1

SECTION 2. BACKGROUND
.01 Section 103(a) provides that, except as provided in § 103(b), gross income does
not include interest on any State or local bond. Section 103(b)(1) provides that § 103(a)
shall not apply to any private activity bond that is not a "qualified bond" within the
meaning of § 141. Section 141(e) provides, in part, that the term "qualified bond"
means any private activity bond if such bond (1) is a qualified mortgage bond under
§ 143, (2) meets the volume cap requirements under § 146, and (3) meets the
applicable requirements under § 147.
.02 Section 143(a)(1) provides that the term "qualified mortgage bond" means a
bond that is issued as part of a qualified mortgage issue. Section 143(a)(2)(A) provides
that the term "qualified mortgage issue" means an issue of one or more bonds by a
State or political subdivision thereof, but only if: (i) all proceeds of the issue (exclusive of
issuance costs and a reasonably required reserve) are to be used to finance owneroccupied residences; (ii) the issue meets the requirements of subsections (c), (d), (e),
(f), (g), (h), (i), and (m)(7) of § 143; (iii) the issue does not meet the private business
tests of paragraphs (1) and (2) of § 141(b); and (iv) with respect to amounts received
more than 10 years after the date of issuance, repayments of $250,000 or more of
principal on mortgage financing provided by the issue are used by the close of the first
semiannual period beginning after the date the prepayment (or complete repayment) is
received to redeem bonds that are part of the issue.
Average Area Purchase Price
.03 Section 143(e)(1) provides that an issue of bonds meets the purchase price
requirements of § 143(e) if the acquisition cost of each residence financed by the issue
2

does not exceed 90 percent of the average area purchase price applicable to such
residence. Section 143(e)(5) provides that, in the case of a targeted area residence (as
defined in § 143(j)), § 143(e)(1) shall be applied by substituting 110 percent for 90
percent.
.04 Section 143(e)(2) provides that the term "average area purchase price" means,
with respect to any residence, the average purchase price of single-family residences
(in the statistical area in which the residence is located) that were purchased during the
most recent 12-month period for which sufficient statistical information is available.
Under §§ 143(e)(3) and (4), respectively, separate determinations of average area
purchase price are to be made for new and existing residences, and for two-, three-,
and four-family residences.
.05 Section 143(e)(2) also provides that the determination of the average area
purchase price shall be made as of the date on which the commitment to provide the
financing is made or, if earlier, the date of the purchase of the residence.
.06 Section 143(k)(2)(A) provides that the term "statistical area" means (i) a
metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not
within an MSA. Section 143(k)(2)(C) further provides that if sufficient recent statistical
information with respect to a county (or portion thereof) is unavailable, the Secretary
may substitute another area for which there is sufficient recent statistical information for
such county (or portion thereof). In the case of any portion of a State which is not within
a county, § 143(k)(2)(D) provides that the Secretary may designate an area that is the
equivalent of a county. Section 6a.103A-1(b)(4)(i) of the Income Tax Regulations
(issued under § 103A of the Internal Revenue Code of 1954, the predecessor of § 143
3

of the Code) provides that the term “State” includes a possession of the United States
and the District of Columbia.
.07 Section 6a.103A-2(f)(5)(i) provides that an issuer may rely upon the average
area purchase price safe harbors published by the Department of the Treasury
(Treasury Department) for the statistical area in which a residence is located. Section
6a.103A-2(f)(5)(i) further provides that an issuer may use an average area purchase
price limitation different from the published safe harbor if the issuer has more accurate
and comprehensive data for the statistical area.
Qualified Mortgage Credit Certificate Program
.08 Section 25(c) permits a State or political subdivision thereof to establish a
qualified mortgage credit certificate program. In general, a qualified mortgage credit
certificate program is a program under which the issuing authority elects not to issue an
amount of private activity bonds that it may otherwise issue during the calendar year
under § 146, and in its place, issues mortgage credit certificates to taxpayers in
connection with the acquisition of their principal residences. Section 25(a)(1) provides,
in general, that the holder of a mortgage credit certificate may claim a federal income
tax credit equal to the product of the credit rate specified in the certificate and the
interest paid or accrued during the tax year on the remaining principal of the
indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally
provides that residences acquired in connection with the issuance of mortgage credit
certificates must meet the purchase price requirements of § 143(e).
Income Limitations for Qualified Mortgage Bonds and Mortgage Credit Certificates
.09 Section 143(f) imposes limitations on the income of mortgagors for whom
4

financing may be provided by qualified mortgage bonds. In addition,
§ 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet the
income requirement of § 143(f). Generally, under §§ 143(f)(1) and 25(c)(2)(A)(iii)(IV),
the income requirement is met only if all owner-financing under a qualified mortgage
bond and all mortgage credit certificates issued under a qualified mortgage credit
certificate program are provided to mortgagors whose family income is 115 percent or
less of the applicable median family income. Section 143(f)(5), however, generally
provides for an upward adjustment to the percentage limitation in high housing cost
areas. High housing cost areas are defined in § 143(f)(5)(C) as any statistical area for
which the housing cost/income ratio is greater than 1.2.
.10 Under § 143(f)(5)(D), the housing cost/income ratio with respect to any statistical
area is determined by dividing (a) the applicable housing price ratio for such area by (b)
the ratio that the area median gross income for such area bears to the median gross
income for the United States. The applicable housing price ratio is the new housing
price ratio (new housing average area purchase price divided by the new housing
average purchase price for the United States) or the existing housing price ratio
(existing housing average area purchase price divided by the existing housing average
purchase price for the United States), whichever results in the housing cost/income ratio
being closer to 1.
Average Area and Nationwide Purchase Price Limitations
.11 Average area purchase price safe harbors for each state, the District of
Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin
Islands, and Guam were last published in Rev. Proc. 2023-22, 2023-19 I.R.B. 838.
5

.12 The nationwide average purchase price was last published in section 4.02 of
Rev. Proc. 2023-22. Guidance with respect to the United States and area median gross
income figures that are used in computing the housing cost/income ratio described in
§ 143(f)(5) was published in Rev. Proc. 2021-19, 2021-15 I.R.B. 1008.
.13 This revenue procedure uses Federal Housing Administration (FHA) loan limits
for a given statistical area to calculate the average area purchase price safe harbor for
that area. FHA sets limits on the dollar value of loans it will insure based on median
home prices and conforming loan limits established by the Federal Home Loan
Mortgage Corporation. In particular, FHA sets an area's loan limit at 95 percent of the
median home sales price for the area, subject to certain floors and caps measured
against conforming loan limits.
.14 To calculate the average area purchase price safe harbors in this revenue
procedure, the FHA loan limits are adjusted to take into account the differences
between average and median purchase prices. Because FHA loan limits do not
differentiate between new and existing residences, this revenue procedure contains a
single average area purchase price safe harbor for both new and existing residences in
a statistical area.
.15 The average area purchase price safe harbors listed in section 4.01 of this
revenue procedure are based on FHA loan limits released November 28, 2023. FHA
loan limits are available for statistical areas in each state, the District of Columbia,
Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and
Guam. See section 3.03 of this revenue procedure with respect to FHA loan limits
revised after November 28, 2023.
6

.16 OMB Bulletin No. 03-04, dated and effective June 6, 2003, revised the definitions
of the nation’s metropolitan areas and recognized 49 new metropolitan statistical areas.
The OMB bulletin no longer includes primary metropolitan statistical areas.
SECTION 3. APPLICATION
Average Area Purchase Price Safe Harbors
.01 Average area purchase price safe harbors for statistical areas in each state, the
District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the
Virgin Islands, and Guam are set forth in section 4.01 of this revenue procedure.
Average area purchase price safe harbors are provided for single-family and two to
four-family residences. For each type of residence, section 4.01 of this revenue
procedure contains a single safe harbor that may be used for both new and existing
residences. Issuers of qualified mortgage bonds and issuers of mortgage credit
certificates may rely on these safe harbors to satisfy the requirements of §§ 143(e) and
(f). Section 4.01 of this revenue procedure provides safe harbors for MSAs and for
certain counties and county equivalents. If no purchase price safe harbor is available
for a statistical area, the safe harbor for "ALL OTHER AREAS" may be used for that
statistical area.
.02 If a residence is in an MSA, the safe harbor applicable to it is the limitation of that
MSA. If an MSA falls in more than one state, the MSA is listed in section 4.01 of this
revenue procedure under each state.
.03 If the FHA revises the FHA loan limit for any statistical area after November 28,
2023, an issuer of qualified mortgage bonds or mortgage credit certificates may use the
revised FHA loan limit for that statistical area to compute (as provided in the next
7

sentence) a revised average area purchase price safe harbor for the statistical area
provided that the issuer maintains records evidencing the revised FHA loan limit. The
revised average area purchase price safe harbor for that statistical area is computed by
dividing the revised FHA loan limit by 0.878.
.04 If, pursuant to § 6a.103A-2(f)(5)(i), an issuer uses more accurate and
comprehensive data to determine the average area purchase price for a statistical area,
the issuer must make separate average area purchase price determinations for new
and existing residences. Moreover, when computing the average area purchase price
for a statistical area that is an MSA, as defined in OMB Bulletin No. 23-01, the issuer
must make the computation for the entire applicable MSA. When computing the
average area purchase price for a statistical area that is not an MSA, the issuer must
make the computation for the entire statistical area and may not combine statistical
areas. Thus, for example, the issuer may not combine two or more counties.
.05 If an issuer receives a ruling permitting it to rely on an average area purchase
price limitation that is higher than the applicable safe harbor in this revenue procedure,
the issuer may rely on that higher limitation for the purpose of satisfying the
requirements of §§ 143(e) and (f) for bonds sold, and mortgage credit certificates
issued, not more than 30 months following the termination date of the 12-month period
used by the issuer to compute the limitation.
Nationwide Average Purchase Price
.06 Section 4.02 of this revenue procedure sets forth a single nationwide average
purchase price for purposes of computing the housing cost/income ratio under
§ 143(f)(5).
8

.07 Issuers must use the nationwide average purchase price set forth in section 4.02
of this revenue procedure when computing the housing cost/income ratio under
§ 143(f)(5) regardless of whether they are relying on the average area purchase price
safe harbors contained in this revenue procedure or using more accurate and
comprehensive data to determine average area purchase prices for new and existing
residences for a statistical area that are different from the published safe harbors in this
revenue procedure.
.08 If, pursuant to section 6.02 of this revenue procedure, an issuer relies on the
average area purchase price safe harbors contained in Rev. Proc. 2023-22, the issuer
must use the nationwide average purchase price set forth in section 4.02 of Rev. Proc.
2023-22 in computing the housing cost/income ratio under § 143(f)(5). Likewise, if,
pursuant to section 6.04 of this revenue procedure, an issuer relies on the nationwide
average purchase price published in Rev. Proc. 2023-22, the issuer must use the
average area purchase price safe harbors set forth in section 4.01 of Rev. Proc. 202322 in computing the housing cost/income ratio under § 143(f)(5).
SECTION 4. AVERAGE AREA AND NATIONWIDE AVERAGE PURCHASE PRICES
.01 Average area purchase prices for single-family and two to four-family residences
in MSAs, and for certain counties and county equivalents are set forth below. The safe
harbor for “ALL OTHER AREAS” (found at the end of the table below) may be used for
a statistical area that is not listed below.

9

2024 Average Area Purchase Prices for Mortgage Revenue Bonds
State

One-Unit
Limit

Two-Unit
Limit

Three-Unit
Limit

Four-Unit
Limit

ALEUTIANS WEST
HOONAH-ANGOON C
JUNEAU CITY AND
KODIAK ISLAND B
SITKA CITY AND
SKAGWAY MUNICIP

AK
AK
AK
AK
AK
AK

$621,082
$597,497
$630,255
$589,635
$668,253
$597,497

$795,068
$764,874
$806,860
$754,847
$855,455
$764,874

$961,077
$924,559
$975,262
$912,425
$1,034,055
$924,559

$1,194,424
$1,149,020
$1,212,028
$1,133,923
$1,285,120
$1,149,020

COCONINO
MARICOPA
PINAL

AZ
AZ
AZ

$598,807
$604,049
$604,049

$766,583
$773,305
$773,305

$926,610
$934,700
$934,700

$1,151,583
$1,161,667
$1,161,667

ALAMEDA
ALPINE
CONTRA COSTA
EL DORADO
INYO
LOS ANGELES
MARIN
MENDOCINO
MONO
MONTEREY
NAPA
NEVADA
ORANGE
PLACER
RIVERSIDE
SACRAMENTO
SAN BENITO
SAN BERNARDINO
SAN DIEGO
SAN FRANCISCO
SAN JOAQUIN
SAN LUIS OBISPO
SAN MATEO
SANTA BARBARA
SANTA CLARA
SANTA CRUZ
SOLANO
SONOMA
STANISLAUS
VENTURA
YOLO

CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA
CA

$1,310,101
$573,912
$1,310,101
$870,040
$579,153
$1,310,101
$1,310,101
$622,393
$790,111
$1,048,240
$1,159,616
$733,768
$1,310,101
$870,040
$733,768
$870,040
$1,310,101
$733,768
$1,146,513
$1,310,101
$748,182
$1,058,723
$1,310,101
$955,209
$1,310,101
$1,310,101
$780,939
$999,759
$589,635
$1,087,550
$870,040

$1,677,470
$734,680
$1,677,470
$1,113,812
$741,402
$1,677,470
$1,677,470
$796,777
$1,011,495
$1,341,919
$1,484,514
$939,372
$1,677,470
$1,113,812
$939,372
$1,113,812
$1,677,470
$939,372
$1,467,765
$1,677,470
$957,830
$1,355,364
$1,677,470
$1,222,852
$1,677,470
$1,677,470
$999,759
$1,279,879
$754,847
$1,392,280
$1,113,812

$2,027,576
$888,099
$2,027,576
$1,346,362
$896,189
$2,027,576
$2,027,576
$963,128
$1,222,681
$1,622,095
$1,794,428
$1,135,461
$2,027,576
$1,346,362
$1,135,461
$1,346,362
$2,027,576
$1,135,461
$1,774,204
$2,027,576
$1,157,793
$1,638,331
$2,027,576
$1,478,133
$2,027,576
$2,027,576
$1,208,439
$1,547,066
$912,425
$1,682,939
$1,346,362

$2,519,879
$1,103,672
$2,519,879
$1,673,197
$1,113,756
$2,519,879
$2,519,879
$1,196,931
$1,519,493
$2,015,869
$2,230,075
$1,411,137
$2,519,879
$1,673,197
$1,411,137
$1,673,197
$2,519,879
$1,411,137
$2,204,894
$2,519,879
$1,438,824
$2,036,036
$2,519,879
$1,836,984
$2,519,879
$2,519,879
$1,501,832
$1,922,667
$1,133,923
$2,091,468
$1,673,197

County Name

10

ADAMS
ARAPAHOE
BOULDER
BROOMFIELD
CHAFFEE
CLEAR CREEK
DENVER
DOUGLAS
EAGLE
EL PASO
ELBERT
GARFIELD
GILPIN
GRAND
GUNNISON
JEFFERSON
LA PLATA
LARIMER
MONTROSE
OURAY
PARK
PITKIN
ROUTT
SAN JUAN
SAN MIGUEL
SUMMIT
TELLER
WELD

CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO
CO

$930,313
$930,313
$976,174
$930,313
$720,665
$930,313
$930,313
$930,313
$1,310,101
$589,635
$930,313
$1,310,101
$930,313
$851,695
$721,976
$930,313
$746,871
$720,665
$639,427
$639,427
$930,313
$1,310,101
$1,153,065
$589,635
$1,191,063
$1,146,513
$589,635
$638,116

$1,190,949
$1,190,949
$1,249,685
$1,190,949
$922,566
$1,190,949
$1,190,949
$1,190,949
$1,677,470
$754,847
$1,190,949
$1,677,470
$1,190,949
$1,090,341
$924,275
$1,190,949
$956,121
$922,566
$818,596
$818,596
$1,190,949
$1,677,470
$1,476,139
$754,847
$1,524,791
$1,467,765
$754,847
$816,887

$1,439,622
$1,439,622
$1,510,606
$1,439,622
$1,115,180
$1,439,622
$1,439,622
$1,439,622
$2,027,576
$912,425
$1,439,622
$2,027,576
$1,439,622
$1,317,935
$1,117,231
$1,439,622
$1,155,742
$1,115,180
$989,448
$989,448
$1,439,622
$2,027,576
$1,784,345
$912,425
$1,843,137
$1,774,204
$912,425
$987,454

$1,789,073
$1,789,073
$1,877,319
$1,789,073
$1,385,899
$1,789,073
$1,789,073
$1,789,073
$2,519,879
$1,133,923
$1,789,073
$2,519,879
$1,789,073
$1,637,876
$1,388,406
$1,789,073
$1,436,317
$1,385,899
$1,229,689
$1,229,689
$1,789,073
$2,519,879
$2,217,484
$1,133,923
$2,290,576
$2,204,894
$1,133,923
$1,227,182

FAIRFIELD

CT

$818,938

$1,048,411

$1,267,289

$1,574,924

DISTRICT OF COL

DC

$1,310,101

$1,677,470

$2,027,576

$2,519,879

NEW CASTLE

DE

$635,496

$813,526

$983,409

$1,222,112

BAKER
BROWARD
CLAY
COLLIER
DUVAL
MANATEE
MARTIN
MIAMI-DADE
MONROE
NASSAU
OKALOOSA
PALM BEACH
SARASOTA
ST. JOHNS

FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL
FL

$643,358
$707,562
$643,358
$832,041
$643,358
$623,703
$622,393
$707,562
$1,058,723
$643,358
$687,908
$707,562
$623,703
$643,358

$823,609
$905,816
$823,609
$1,065,160
$823,609
$798,429
$796,777
$905,816
$1,355,364
$823,609
$880,636
$905,816
$798,429
$823,609

$995,544
$1,094,899
$995,544
$1,287,513
$995,544
$965,122
$963,128
$1,094,899
$1,638,331
$995,544
$1,064,477
$1,094,899
$965,122
$995,544

$1,237,266
$1,360,719
$1,237,266
$1,600,105
$1,237,266
$1,199,438
$1,196,931
$1,360,719
$2,036,036
$1,237,266
$1,322,891
$1,360,719
$1,199,438
$1,237,266

11

ST. LUCIE
WALTON

FL
FL

$622,393
$687,908

$796,777
$880,636

$963,128
$1,064,477

$1,196,931
$1,322,891

BARROW
BARTOW
BUTTS
CARROLL
CHEROKEE
CLARKE
CLAYTON
COBB
COWETA
DAWSON
DEKALB
DOUGLAS
FAYETTE
FORSYTH
FULTON
GREENE
GWINNETT
HARALSON
HEARD
HENRY
JASPER
LAMAR
MADISON
MERIWETHER
MORGAN
NEWTON
OCONEE
OGLETHORPE
PAULDING
PICKENS
PIKE
ROCKDALE
SPALDING
WALTON

GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA
GA

$740,320
$740,320
$740,320
$740,320
$740,320
$622,393
$740,320
$740,320
$740,320
$740,320
$740,320
$740,320
$740,320
$740,320
$740,320
$602,738
$740,320
$740,320
$740,320
$740,320
$740,320
$740,320
$622,393
$740,320
$740,320
$740,320
$622,393
$622,393
$740,320
$740,320
$740,320
$740,320
$740,320
$740,320

$947,746
$947,746
$947,746
$947,746
$947,746
$796,777
$947,746
$947,746
$947,746
$947,746
$947,746
$947,746
$947,746
$947,746
$947,746
$771,596
$947,746
$947,746
$947,746
$947,746
$947,746
$947,746
$796,777
$947,746
$947,746
$947,746
$796,777
$796,777
$947,746
$947,746
$947,746
$947,746
$947,746
$947,746

$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$963,128
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$932,706
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$963,128
$1,145,602
$1,145,602
$1,145,602
$963,128
$963,128
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602
$1,145,602

$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,196,931
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,159,103
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,196,931
$1,423,727
$1,423,727
$1,423,727
$1,196,931
$1,196,931
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727
$1,423,727

HAWAII
HONOLULU
KALAWAO
KAUAI
MAUI

HI
HI
HI
HI
HI

$589,635
$888,384
$1,139,962
$1,172,719
$1,139,962

$754,847
$1,137,284
$1,459,390
$1,501,320
$1,459,390

$912,425
$1,374,733
$1,764,063
$1,814,709
$1,764,063

$1,133,923
$1,708,461
$2,192,304
$2,255,255
$2,192,304

ADA
BLAINE
BOISE
BONNER
CAMAS
CANYON

ID
ID
ID
ID
ID
ID

$668,253
$864,798
$668,253
$596,187
$864,798
$668,253

$855,455
$1,107,090
$855,455
$763,222
$1,107,090
$855,455

$1,034,055
$1,338,216
$1,034,055
$922,566
$1,338,216
$1,034,055

$1,285,120
$1,663,113
$1,285,120
$1,146,513
$1,663,113
$1,285,120

12

GEM
KOOTENAI
OWYHEE
TETON
VALLEY

ID
ID
ID
ID
ID

$668,253
$652,530
$668,253
$1,310,101
$653,840

$855,455
$835,345
$855,455
$1,677,470
$837,054

$1,034,055
$1,009,729
$1,034,055
$2,027,576
$1,011,780

$1,285,120
$1,254,869
$1,285,120
$2,519,879
$1,257,376

BARNSTABLE
BRISTOL
DUKES
ESSEX
MIDDLESEX
NANTUCKET
NORFOLK
PLYMOUTH
SUFFOLK

MA
MA
MA
MA
MA
MA
MA
MA
MA

$851,695
$838,592
$1,310,101
$982,725
$982,725
$1,310,101
$982,725
$982,725
$982,725

$1,090,341
$1,073,535
$1,677,470
$1,258,059
$1,258,059
$1,677,470
$1,258,059
$1,258,059
$1,258,059

$1,317,935
$1,297,653
$2,027,576
$1,520,746
$1,520,746
$2,027,576
$1,520,746
$1,520,746
$1,520,746

$1,637,876
$1,612,695
$2,519,879
$1,889,909
$1,889,909
$2,519,879
$1,889,909
$1,889,909
$1,889,909

ANNE ARUNDEL
BALTIMORE
BALTIMORE CITY
CALVERT
CARROLL
CECIL
CHARLES
FREDERICK
HARFORD
HOWARD
MONTGOMERY
PRINCE GEORGE'S
QUEEN ANNE'S

MD
MD
MD
MD
MD
MD
MD
MD
MD
MD
MD
MD
MD

$759,974
$759,974
$759,974
$1,310,101
$759,974
$635,496
$1,310,101
$1,310,101
$759,974
$759,974
$1,310,101
$1,310,101
$759,974

$972,927
$972,927
$972,927
$1,677,470
$972,927
$813,526
$1,677,470
$1,677,470
$972,927
$972,927
$1,677,470
$1,677,470
$972,927

$1,176,023
$1,176,023
$1,176,023
$2,027,576
$1,176,023
$983,409
$2,027,576
$2,027,576
$1,176,023
$1,176,023
$2,027,576
$2,027,576
$1,176,023

$1,461,498
$1,461,498
$1,461,498
$2,519,879
$1,461,498
$1,222,112
$2,519,879
$2,519,879
$1,461,498
$1,461,498
$2,519,879
$2,519,879
$1,461,498

CUMBERLAND
SAGADAHOC
YORK

ME
ME
ME

$622,393
$622,393
$622,393

$796,777
$796,777
$796,777

$963,128
$963,128
$963,128

$1,196,931
$1,196,931
$1,196,931

ANOKA
CARVER
CHISAGO
DAKOTA
HENNEPIN
ISANTI
LE SUEUR
MILLE LACS
RAMSEY
SCOTT
SHERBURNE
WASHINGTON
WRIGHT

MN
MN
MN
MN
MN
MN
MN
MN
MN
MN
MN
MN
MN

$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015
$587,015

$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486
$751,486

$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380
$908,380

$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909
$1,128,909

BROADWATER
CARBON

MT
MT

$568,670
$859,557

$728,014
$1,100,368

$879,952
$1,330,126

$1,093,588
$1,653,030

13

FLATHEAD
GALLATIN
MISSOULA
PARK
RAVALLI
STILLWATER
YELLOWSTONE

MT
MT
MT
MT
MT
MT
MT

$636,806
$818,938
$622,393
$642,047
$575,222
$859,557
$859,557

$815,235
$1,048,411
$796,777
$821,957
$736,389
$1,100,368
$1,100,368

$985,403
$1,267,289
$963,128
$993,550
$890,093
$1,330,126
$1,330,126

$1,224,618
$1,574,924
$1,196,931
$1,234,702
$1,106,179
$1,653,030
$1,653,030

CAMDEN
CHATHAM
CURRITUCK
DARE
DURHAM
FRANKLIN
GATES
GRANVILLE
JOHNSTON
ORANGE
PASQUOTANK
PERQUIMANS
PERSON
WAKE

NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC
NC

$786,180
$686,598
$786,180
$703,631
$686,598
$602,738
$786,180
$686,598
$602,738
$686,598
$917,210
$917,210
$686,598
$602,738

$1,006,425
$878,984
$1,006,425
$900,746
$878,984
$771,596
$1,006,425
$878,984
$771,596
$878,984
$1,174,200
$1,174,200
$878,984
$771,596

$1,216,586
$1,062,483
$1,216,586
$1,088,803
$1,062,483
$932,706
$1,216,586
$1,062,483
$932,706
$1,062,483
$1,419,340
$1,419,340
$1,062,483
$932,706

$1,511,916
$1,320,384
$1,511,916
$1,353,142
$1,320,384
$1,159,103
$1,511,916
$1,320,384
$1,159,103
$1,320,384
$1,763,892
$1,763,892
$1,320,384
$1,159,103

BILLINGS
STARK

ND
ND

$579,153
$579,153

$741,402
$741,402

$896,189
$896,189

$1,113,756
$1,113,756

DAWSON
GOSPER

NE
NE

$687,908
$687,908

$880,636
$880,636

$1,064,477
$1,064,477

$1,322,891
$1,322,891

ROCKINGHAM
STRAFFORD

NH
NH

$982,725
$982,725

$1,258,059
$1,258,059

$1,520,746
$1,520,746

$1,889,909
$1,889,909

BERGEN
BURLINGTON
CAMDEN
CAPE MAY
ESSEX
GLOUCESTER
HUDSON
HUNTERDON
MIDDLESEX
MONMOUTH
MORRIS
OCEAN
PASSAIC
SALEM
SOMERSET
SUSSEX
UNION

NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ
NJ

$1,310,101
$635,496
$635,496
$635,496
$1,310,101
$635,496
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$635,496
$1,310,101
$1,310,101
$1,310,101

$1,677,470
$813,526
$813,526
$813,526
$1,677,470
$813,526
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$813,526
$1,677,470
$1,677,470
$1,677,470

$2,027,576
$983,409
$983,409
$983,409
$2,027,576
$983,409
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$983,409
$2,027,576
$2,027,576
$2,027,576

$2,519,879
$1,222,112
$1,222,112
$1,222,112
$2,519,879
$1,222,112
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$1,222,112
$2,519,879
$2,519,879
$2,519,879

14

LOS ALAMOS
SANTA FE

NM
NM

$712,804
$617,152

$912,539
$790,054

$1,103,045
$954,981

$1,370,802
$1,186,848

CARSON CITY
DOUGLAS
STOREY
WASHOE

NV
NV
NV
NV

$581,773
$749,492
$707,562
$707,562

$744,763
$959,482
$905,816
$905,816

$900,233
$1,159,787
$1,094,899
$1,094,899

$1,118,826
$1,441,331
$1,360,719
$1,360,719

BRONX
KINGS
NASSAU
NEW YORK
PUTNAM
QUEENS
RICHMOND
ROCKLAND
SUFFOLK
WESTCHESTER

NY
NY
NY
NY
NY
NY
NY
NY
NY
NY

$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$1,310,101

$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,677,470

$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$2,027,576

$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$2,519,879

DELAWARE
FAIRFIELD
FRANKLIN
HOCKING
LICKING
MADISON
MORROW
PERRY
PICKAWAY
UNION

OH
OH
OH
OH
OH
OH
OH
OH
OH
OH

$622,393
$622,393
$622,393
$622,393
$622,393
$622,393
$622,393
$622,393
$622,393
$622,393

$796,777
$796,777
$796,777
$796,777
$796,777
$796,777
$796,777
$796,777
$796,777
$796,777

$963,128
$963,128
$963,128
$963,128
$963,128
$963,128
$963,128
$963,128
$963,128
$963,128

$1,196,931
$1,196,931
$1,196,931
$1,196,931
$1,196,931
$1,196,931
$1,196,931
$1,196,931
$1,196,931
$1,196,931

BENTON
CLACKAMAS
CLATSOP
COLUMBIA
DESCHUTES
HOOD RIVER
MULTNOMAH
WASHINGTON
YAMHILL

OR
OR
OR
OR
OR
OR
OR
OR
OR

$681,356
$774,388
$602,738
$774,388
$786,180
$825,489
$774,388
$774,388
$774,388

$872,261
$991,328
$771,596
$991,328
$1,006,425
$1,056,786
$991,328
$991,328
$991,328

$1,054,336
$1,198,298
$932,706
$1,198,298
$1,216,586
$1,277,429
$1,198,298
$1,198,298
$1,198,298

$1,310,301
$1,489,242
$1,159,103
$1,489,242
$1,511,916
$1,587,515
$1,489,242
$1,489,242
$1,489,242

BUCKS
CHESTER
DELAWARE
MONTGOMERY
PHILADELPHIA
PIKE

PA
PA
PA
PA
PA
PA

$635,496
$635,496
$635,496
$635,496
$635,496
$1,310,101

$813,526
$813,526
$813,526
$813,526
$813,526
$1,677,470

$983,409
$983,409
$983,409
$983,409
$983,409
$2,027,576

$1,222,112
$1,222,112
$1,222,112
$1,222,112
$1,222,112
$2,519,879

BRISTOL
KENT
NEWPORT

RI
RI
RI

$838,592
$838,592
$838,592

$1,073,535
$1,073,535
$1,073,535

$1,297,653
$1,297,653
$1,297,653

$1,612,695
$1,612,695
$1,612,695

15

PROVIDENCE
WASHINGTON

RI
RI

$838,592
$838,592

$1,073,535
$1,073,535

$1,297,653
$1,297,653

$1,612,695
$1,612,695

BEAUFORT
BERKELEY
CHARLESTON
DORCHESTER
JASPER

SC
SC
SC
SC
SC

$622,393
$668,253
$668,253
$668,253
$622,393

$796,777
$855,455
$855,455
$855,455
$796,777

$963,128
$1,034,055
$1,034,055
$1,034,055
$963,128

$1,196,931
$1,285,120
$1,285,120
$1,285,120
$1,196,931

LAWRENCE

SD

$617,152

$790,054

$954,981

$1,186,848

CANNON
CHEATHAM
DAVIDSON
DICKSON
MACON
MAURY
ROBERTSON
RUTHERFORD
SMITH
SUMNER
TROUSDALE
WILLIAMSON
WILSON

TN
TN
TN
TN
TN
TN
TN
TN
TN
TN
TN
TN
TN

$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447
$1,074,447

$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474
$1,375,474

$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658
$1,662,658

$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287
$2,066,287

ATASCOSA
BANDERA
BASTROP
BEXAR
CALDWELL
COLLIN
COMAL
DALLAS
DENTON
ELLIS
GUADALUPE
HAYS
HUNT
JOHNSON
KAUFMAN
KENDALL
MEDINA
PARKER
ROCKWALL
TARRANT
TRAVIS
WILLIAMSON
WILSON
WISE

TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX
TX

$635,496
$635,496
$651,219
$635,496
$651,219
$642,047
$635,496
$642,047
$642,047
$642,047
$635,496
$651,219
$642,047
$642,047
$642,047
$635,496
$635,496
$642,047
$642,047
$642,047
$651,219
$651,219
$635,496
$642,047

$813,526
$813,526
$833,693
$813,526
$833,693
$821,957
$813,526
$821,957
$821,957
$821,957
$813,526
$833,693
$821,957
$821,957
$821,957
$813,526
$813,526
$821,957
$821,957
$821,957
$833,693
$833,693
$813,526
$821,957

$983,409
$983,409
$1,007,735
$983,409
$1,007,735
$993,550
$983,409
$993,550
$993,550
$993,550
$983,409
$1,007,735
$993,550
$993,550
$993,550
$983,409
$983,409
$993,550
$993,550
$993,550
$1,007,735
$1,007,735
$983,409
$993,550

$1,222,112
$1,222,112
$1,252,363
$1,222,112
$1,252,363
$1,234,702
$1,222,112
$1,234,702
$1,234,702
$1,234,702
$1,222,112
$1,252,363
$1,234,702
$1,234,702
$1,234,702
$1,222,112
$1,222,112
$1,234,702
$1,234,702
$1,234,702
$1,252,363
$1,252,363
$1,222,112
$1,234,702

16

BOX ELDER
DAVIS
GRAND
JUAB
MORGAN
RICH
SALT LAKE
SUMMIT
TOOELE
UTAH
WASATCH
WASHINGTON
WAYNE
WEBER

UT
UT
UT
UT
UT
UT
UT
UT
UT
UT
UT
UT
UT
UT

$847,764
$847,764
$691,839
$685,287
$847,764
$660,392
$706,252
$1,310,101
$706,252
$685,287
$1,310,101
$676,115
$1,136,031
$847,764

$1,085,271
$1,085,271
$885,649
$877,275
$1,085,271
$845,429
$904,107
$1,677,470
$904,107
$877,275
$1,677,470
$865,539
$1,454,320
$1,085,271

$1,311,896
$1,311,896
$1,070,573
$1,060,432
$1,311,896
$1,021,921
$1,092,905
$2,027,576
$1,092,905
$1,060,432
$2,027,576
$1,046,247
$1,757,968
$1,311,896

$1,630,356
$1,630,356
$1,330,468
$1,317,878
$1,630,356
$1,270,023
$1,358,212
$2,519,879
$1,358,212
$1,317,878
$2,519,879
$1,300,217
$2,184,727
$1,630,356

ALBEMARLE
ALEXANDRIA CITY
AMELIA
ARLINGTON
CHARLES CITY
CHARLOTTESVILLE
CHESAPEAKE CITY
CHESTERFIELD
CLARKE
COLONIAL HEIGHT
CULPEPER
DINWIDDIE
FAIRFAX
FAIRFAX CITY
FALLS CHURCH CI
FAUQUIER
FLUVANNA
FRANKLIN CITY
FREDERICKSBURG
GLOUCESTER
GOOCHLAND
GREENE
HAMPTON CITY
HANOVER
HENRICO
HOPEWELL CITY
ISLE OF WIGHT
JAMES CITY
KING AND QUEEN
KING WILLIAM
LOUDOUN
MADISON
MANASSAS CITY
MANASSAS PARK C
MATHEWS

VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA

$621,082
$1,310,101
$719,355
$1,310,101
$719,355
$621,082
$786,180
$719,355
$1,310,101
$719,355
$1,310,101
$719,355
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$621,082
$786,180
$1,310,101
$786,180
$719,355
$621,082
$786,180
$719,355
$719,355
$719,355
$786,180
$786,180
$719,355
$719,355
$1,310,101
$1,310,101
$1,310,101
$1,310,101
$786,180

$795,068
$1,677,470
$920,913
$1,677,470
$920,913
$795,068
$1,006,425
$920,913
$1,677,470
$920,913
$1,677,470
$920,913
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$795,068
$1,006,425
$1,677,470
$1,006,425
$920,913
$795,068
$1,006,425
$920,913
$920,913
$920,913
$1,006,425
$1,006,425
$920,913
$920,913
$1,677,470
$1,677,470
$1,677,470
$1,677,470
$1,006,425

$961,077
$2,027,576
$1,113,186
$2,027,576
$1,113,186
$961,077
$1,216,586
$1,113,186
$2,027,576
$1,113,186
$2,027,576
$1,113,186
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$961,077
$1,216,586
$2,027,576
$1,216,586
$1,113,186
$961,077
$1,216,586
$1,113,186
$1,113,186
$1,113,186
$1,216,586
$1,216,586
$1,113,186
$1,113,186
$2,027,576
$2,027,576
$2,027,576
$2,027,576
$1,216,586

$1,194,424
$2,519,879
$1,383,393
$2,519,879
$1,383,393
$1,194,424
$1,511,916
$1,383,393
$2,519,879
$1,383,393
$2,519,879
$1,383,393
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$1,194,424
$1,511,916
$2,519,879
$1,511,916
$1,383,393
$1,194,424
$1,511,916
$1,383,393
$1,383,393
$1,383,393
$1,511,916
$1,511,916
$1,383,393
$1,383,393
$2,519,879
$2,519,879
$2,519,879
$2,519,879
$1,511,916

17

NELSON
NEW KENT
NEWPORT NEWS CI
NORFOLK CITY
PETERSBURG CITY
POQUOSON CITY
PORTSMOUTH CITY
POWHATAN
PRINCE GEORGE
PRINCE WILLIAM
RAPPAHANNOCK
RICHMOND CITY
SOUTHAMPTON
SPOTSYLVANIA
STAFFORD
SUFFOLK CITY
SUSSEX
VIRGINIA BEACH
WARREN
WILLIAMSBURG CI
YORK

VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA
VA

$621,082
$719,355
$786,180
$786,180
$719,355
$786,180
$786,180
$719,355
$719,355
$1,310,101
$1,310,101
$719,355
$786,180
$1,310,101
$1,310,101
$786,180
$719,355
$786,180
$1,310,101
$786,180
$786,180

$795,068
$920,913
$1,006,425
$1,006,425
$920,913
$1,006,425
$1,006,425
$920,913
$920,913
$1,677,470
$1,677,470
$920,913
$1,006,425
$1,677,470
$1,677,470
$1,006,425
$920,913
$1,006,425
$1,677,470
$1,006,425
$1,006,425

$961,077
$1,113,186
$1,216,586
$1,216,586
$1,113,186
$1,216,586
$1,216,586
$1,113,186
$1,113,186
$2,027,576
$2,027,576
$1,113,186
$1,216,586
$2,027,576
$2,027,576
$1,216,586
$1,113,186
$1,216,586
$2,027,576
$1,216,586
$1,216,586

$1,194,424
$1,383,393
$1,511,916
$1,511,916
$1,383,393
$1,511,916
$1,511,916
$1,383,393
$1,383,393
$2,519,879
$2,519,879
$1,383,393
$1,511,916
$2,519,879
$2,519,879
$1,511,916
$1,383,393
$1,511,916
$2,519,879
$1,511,916
$1,511,916

CHITTENDEN
FRANKLIN
GRAND ISLE

VT
VT
VT

$589,635
$589,635
$589,635

$754,847
$754,847
$754,847

$912,425
$912,425
$912,425

$1,133,923
$1,133,923
$1,133,923

CHELAN
CLARK
DOUGLAS
ISLAND
JEFFERSON
KING
KITSAP
PIERCE
SKAGIT
SKAMANIA
SNOHOMISH
THURSTON
WHATCOM
WHITMAN

WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA
WA

$576,532
$774,388
$576,532
$655,150
$589,635
$1,113,756
$642,047
$1,113,756
$621,082
$774,388
$1,113,756
$622,393
$687,908
$602,738

$738,041
$991,328
$738,041
$838,706
$754,847
$1,425,835
$821,957
$1,425,835
$795,068
$991,328
$1,425,835
$796,777
$880,636
$771,596

$892,144
$1,198,298
$892,144
$1,013,831
$912,425
$1,723,501
$993,550
$1,723,501
$961,077
$1,198,298
$1,723,501
$963,128
$1,064,477
$932,706

$1,108,742
$1,489,242
$1,108,742
$1,259,939
$1,133,923
$2,141,886
$1,234,702
$2,141,886
$1,194,424
$1,489,242
$2,141,886
$1,196,931
$1,322,891
$1,159,103

PIERCE
ST. CROIX

WI
WI

$587,015
$587,015

$751,486
$751,486

$908,380
$908,380

$1,128,909
$1,128,909

JEFFERSON

WV

$1,310,101

$1,677,470

$2,027,576

$2,519,879

TETON

WY

$1,310,101

$1,677,470

$2,027,576

$2,519,879

GUAM

GU

$642,047

$821,957

18

$993,550

$1,234,702

NORTHERN ISLAND
SAIPAN
TINIAN

MP
MP
MP

$597,497
$602,738
$606,669

$764,874
$771,596
$776,666

$924,559
$932,706
$938,802

$1,149,020
$1,159,103
$1,166,680

CULEBRA

PR

$606,669

$776,666

$938,802

$1,166,680

ST. JOHN ISLAND
ST. THOMAS ISLA

VI
VI

$1,206,787
$728,527

$1,544,901
$932,649

$1,867,463
$1,127,371

$2,320,770
$1,401,053

All other areas - 2826
counties (floor):

$567,710

$726,875

$878,614

$1,091,936

.02 The nationwide average purchase price (for use in the housing cost/income ratio
for new and existing residences) is $510,100.
SECTION 5. EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2023-22 is obsolete except as provided in section 6 of this revenue
procedure.
SECTION 6. EFFECTIVE DATES
.01 Issuers may rely on this revenue procedure to determine average area purchase
price safe harbors for commitments to provide financing or issue mortgage credit
certificates that are made, or (if the purchase precedes the commitment) for residences
that are purchased, in the period that begins on April 16, 2024, and ends on the date as
of which the safe harbors contained in section 4.01 of this revenue procedure are
rendered obsolete by a new revenue procedure.
.02 Notwithstanding section 5 of this revenue procedure, issuers may continue to
rely on the average area purchase price safe harbors contained in Rev. Proc. 2023-22,
with respect to bonds sold, or for mortgage credit certificates issued with respect to
bond authority exchanged, before May 16, 2024, if the commitments to provide
financing or issue mortgage credit certificates are made on or before June 15, 2024.
19

.03 Except as provided in section 6.04, issuers must use the nationwide average
purchase price limitation contained in this revenue procedure for commitments to
provide financing or issue mortgage credit certificates that are made, or (if the purchase
precedes the commitment) for residences that are purchased, in the period that begins
on April 16, 2024, and ends on the date when the nationwide average purchase price
limitation is rendered obsolete by a new revenue procedure.
.04 Notwithstanding sections 5 and 6.03 of this revenue procedure, issuers may
continue to rely on the nationwide average purchase price set forth in Rev. Proc. 202322 with respect to bonds sold, or for mortgage credit certificates issued with respect to
bond authority exchanged, before May 16, 2024, if the commitments to provide
financing or issue mortgage credit certificates are made on or before June 15, 2024.
SECTION 7. REQUEST FOR COMMENTS
.01 Comments Regarding Guidance in this Revenue Procedure. The Treasury
Department and the IRS are reviewing the available data sources and method used to
determine the average area purchase price safe harbors listed in section 4.01 of this
revenue procedure and are considering possible changes in the data used to determine
these safe harbors beginning in 2025.
The relationship between safe harbor values calculated under the current
methodology and actual area purchase prices has been growing weaker over the past
decade. The current methodology relies on the FHA single family forward mortgage
limits, which are subject to both a floor and ceiling. Because 87 percent of counties are
subject to the FHA mortgage limit floor and 2 percent of counties are subject to the FHA
ceiling in 2024, most counties have a safe harbor value that does not closely relate to
20

their average area purchase price under the current methodology.
The Treasury Department and the IRS are considering a shift away from using FHA
mortgage limits as the basis for calculating average purchase prices and using median
purchase prices as reported by the Department of Housing and Urban Development
(HUD) as the basis to make such calculations. The Treasury and IRS solicit public
comments on the use of this data and any alternative data sources that would generate
average area purchase price safe harbors that more closely track area purchase prices.
Implementing such a change using HUD data would lead to large changes in safe
harbors if done in a single year. One approach to implementing this change would be to
phase in the new safe harbor amounts over five years, using the current 2024 values as
a baseline and shifting towards the HUD values over time. The first year would
maintain 80 percent of the 2024 values and 20 percent of values calculated using 2025
HUD data. The second year would be 60 percent of the 2024 values and 40 percent of
the values calculated using 2026 HUD data. The third, fourth, and fifth years would
follow, such that the fifth year would feature 100 percent of actual 2029 price data.
A second approach would instead freeze values at the 2024 levels until such time
when an area’s average purchase price based on HUD data surpasses the frozen
value, after which the safe harbor would follow the HUD data.
The Treasury and IRS also seek comments on these implementation approaches,
as well as any other potential implementation approaches.
.02 Procedures for Submitting Comments.
(1) Deadline. Written comments should be submitted by June 15, 2024.
(2) Form and manner. The subject line for the comments should include a
21

reference to Revenue Procedure 2024-21. All commenters are strongly encouraged
to submit comments electronically. However, comments may be submitted in one of
two ways:
(a) Electronically via the Federal eRulemaking Portal at www.regulations.gov
(type IRS-2024-0019 in the search field on the regulations.gov homepage to find this
notice and submit comments); or
(b) By mail to: Internal Revenue Service, CC:PA:01:PR (Revenue Procedure
2024-21), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
(3) Publication of comments. The Treasury Department and the IRS will publish
for public availability any comment submitted electronically or on paper to its public
docket on regulations.gov.
SECTION 8. PAPERWORK REDUCTION ACT
The collection of information contained in this revenue procedure has been reviewed
and approved by the Office of Management and Budget in accordance with the
Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1877.
An agency may not conduct or sponsor, and a person is not required to respond to,
a collection of information unless the collection of information displays a valid OMB
control number.
This revenue procedure contains a collection of information requirement in section
3.03. The purpose of the collection of information is to verify the applicable FHA loan
limit that issuers of qualified mortgage bonds and qualified mortgage certificates have
used to calculate the average area purchase price for a given metropolitan statistical
area for purposes of §§ 143(e) and 25(c). The collection of information is required to
22

obtain the benefit of using revisions to FHA loan limits to determine average area
purchase prices. The likely respondents are state and local governments.
The estimated total annual reporting and/or recordkeeping burden is: 15 hours.
The estimated annual burden per respondent and/or recordkeeper: 15 minutes.
The estimated number of respondents and/or recordkeepers: 60.
Books or records relating to a collection of information must be retained as long as
their contents may become material in the administration of any internal revenue law.
Generally, tax returns and tax return information are confidential, as required by 26
U.S.C. 6103.
SECTION 9. DRAFTING INFORMATION
The principal authors of this revenue procedure are Zoran Stojanovic and David
White of the Office of Associate Chief Counsel (Financial Institutions & Products). For
further information regarding this revenue procedure contact Mr. White at (202) 3174562 (not a toll-free number).

23

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A42c5dc2724787a49. Public record. Not legal advice.