Down payment assistanceWashington, DC
DC Inclusionary Zoning (IZ) Homeownership Program
Below-market purchase price on a new condo or townhome, set by DHCD and offered by lottery; no cash assistance
IZ is not a loan or grant. It gives you the chance to buy a new condo or townhome at a price DHCD sets well below market, tied to your income band. You get a regular mortgage from your own lender. In return the home carries a covenant: you must live there, you cannot rent it out, you certify your residency each year, and when you sell or refinance DHCD sets the price. The IZ program honors the same eight-hour homebuyer class as HPAP.
Funding was available the last time we checked.
Lottery based. Register and finish orientation first; units are announced as they become available.
Last verified Sep 23, 2026. Program terms change; confirm with the administrator before you rely on them.
At a glance
- Amount
- Below-market purchase price on a new condo or townhome, set by DHCD and offered by lottery; no cash assistance
- Type of help
- Other help
- Where
- Washington, DC
- Run by
- DC Department of Housing and Community Development (DHCD), Inclusionary Zoning Program Office
- First-time buyer
- First-time buyers only
- Income limit
- Yes, see below
- Price limit
- Yes, see below
- Homebuyer education
- Required
How the other help works
A special purchase path, discount, or loan type that lowers what you need at closing.
- Monthly payment: None
- When you would repay: Not a loan. When you sell or refinance you must request a resale price from DHCD, and the home stays price-restricted for the next buyer.
Who qualifies
- First-time buyers only. DHCD's rule is that you cannot own other property when you buy an IZ home. There is no three-year lookback; you simply may not own real estate at the time of purchase.
- Income. IZ for-sale units are priced for households at 50%, 60%, or 80% of median family income. Maximum income at 80% MFI (2026 schedule, effective 2026-01-30): $91,800 for 1 person, $104,900 for 2, $118,000 for 3, $131,100 for 4, $141,600 for 5, $152,100 for 6, $162,600 for 7, $173,100 for 8. At 60% the range is $68,850 to $129,840, and at 50% it is $57,350 to $108,200. Each unit is offered to one band, so your income must fit the band of the unit you enter a lottery for.
- Price. Maximum 2026 prices for 80% MFI condos: $234,800 studio, $242,900 one bedroom, $267,100 two bedroom, $316,700 three bedroom, $371,100 four bedroom. Single-family and flats at 80% MFI: $336,500 two bedroom, $394,300 three bedroom, $439,200 four bedroom. Prices at 50% and 60% MFI are lower. Developers may price below these caps.
- You must live or work in the District. DC residents and people who work in DC get priority in lottery ranking.
- Full-time college or university students are not eligible unless they are dependents of someone who qualifies.
- You must qualify for a mortgage with your own lender. DHCD recommends spending no more than 41% of your income on housing costs for a for-sale IZ unit.
- Household size must fit the unit. DHCD emails you only about units that match your household size and income band.
| Area | 1 person | 2 people | 3 people | 4 people | 5 people | 6 people | 7 people | 8 people |
|---|---|---|---|---|---|---|---|---|
| Washington, DC | $91,800 | $104,900 | $118,000 | $131,100 | $141,600 | $152,100 | $162,600 | $173,100 |
How to apply
- 1Take the two-hour IZ Orientation class, offered by DHCD-funded community-based organizations, mostly online. You receive a certificate by email within about a week. It expires after two years, so retake it before it lapses to stay registered.
- 2Register in the IZ program using your certificate number. DHCD emails login instructions, which can take a few weeks to arrive.
- 3Complete the eight-hour homebuyer education class through a DHCD-funded CBO. It is the same class HPAP uses, and it also must be kept current every two years.
- 4Get pre-approved for a mortgage with a lender who understands IZ covenants and resale restrictions.
- 5Watch your email, including spam, one to two times a week. When a for-sale unit matching your income band and household size opens, DHCD emails a lottery link. Enter every drawing that fits. If you win, follow the developer's deadlines closely to submit documents and ratify a contract.
Watch out for
- Lotteries happen only when homes become available, with no schedule. DHCD says selection can take months or years and is a chance, not a promise. Run IZ in parallel with a regular search, not instead of one.
- This is a price-restricted home. When you sell, DHCD sets the resale price by formula, so your equity growth is limited compared to a market-rate home. Refinancing also requires a DHCD pricing letter.
- You cannot rent out or sublet any part of an IZ home, and you must prove each year that it is your primary residence. Moving out means selling through the program.
- Your certificates lapse. Both the orientation certificate and the eight-hour class expire after two years, and you must re-register to stay in the lottery pool.
- Income is checked at the time of the lottery and purchase against the band for that specific unit. A raise can move you out of a 50% or 60% unit you were hoping for.
- Units that do not sell through the lottery are sometimes listed as non-lottery IZ on DCHousingSearch.org. They are rare, but worth a weekly check.
IZ is the one path in DC to a brand-new condo at a price that fits an 80% of median income budget. The trade is patience and limited appreciation. Pair it with HPAP and the tax abatement and the monthly numbers can be remarkable.
Straight answers
Is Inclusionary Zoning down payment assistance?
No. IZ provides no money. It lowers the purchase price of a new condo or townhome to a level set for your income band. You still need a mortgage and a down payment, and you can layer HPAP, EAHP, or NEAHP on top if you qualify for them.
What income do I need?
For-sale IZ units are offered at 50%, 60%, or 80% of median family income. Under the 2026 schedule the 80% cap is $91,800 for one person and $131,100 for a family of four. There is no minimum income for buying, but you must qualify for a mortgage on the unit.
Can I sell an IZ home later?
Yes, but at a restricted price. You submit a Resale Price Request to DHCD and receive a pricing letter, and the home is offered to the next income-qualified buyer. The covenant runs with the property.
Do I have to be a DC resident?
You must live or work in the District to apply, and DC residents receive priority in lottery ranking. You do not have to be a first-time buyer in the usual sense, but you cannot own any other property when you buy.
Sources
- DHCD, Inclusionary Zoning (IZ) Affordable Housing Program (steps to buy, recertification, resale) (read Sep 23, 2026)
- DHCD, 2026 Inclusionary Zoning Maximum Income, Rent and Purchase Price Schedule, effective January 30, 2026 (PDF) (read Sep 23, 2026)
- DHCD, Inclusionary Zoning Program Fact Sheet, January 2026 (PDF) (read Sep 23, 2026)
- DHCD, Inclusionary Zoning Frequently Asked Questions, June 2024 (PDF) (read Sep 23, 2026)
- DHCD, Inclusionary Zoning Orientation Classes (read Sep 23, 2026)
- Front Door DC, Buy a home at a reduced price (IZ buyers) (read Sep 23, 2026)
Program details are summarized from public sources and change without notice. Funding badges reflect the last time we checked, not a guarantee of availability. This is buyer education from a real estate agent, not a loan pre-approval or a commitment to lend. Eligibility is decided by each program administrator and your lender. Equal Housing Opportunity.
Programs are the easy part. Timing is the hard part.
Most buyers lose assistance on a deadline, not on eligibility. Sean helps you map out the counseling, the lender conversation, and the contract dates so nothing slips.