IRS Revenue Procedure 2025-18: New MRB and MCC Purchase Price Limits and Safe Harbors
On April 16, 2025, the Internal Revenue Service published Revenue Procedure 2025-18, which revises the nationwide average purchase price limits and the average area purchase price safe harbors for the Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs. The revenue procedure establishes the new MRB and MCC purchase price limits by taking the Federal Housing Administration (FHA) single-family loan limits released in November 2024 and dividing them by .867. It also sets the national average purchase price at $540,700 for computing the housing cost/income ratio, which determines which areas qualify as high cost and are eligible for an increase in MRB/MCC income limits.
The revenue procedure states that IRS will not change the methodology or data set used to calculate the MRB/MCC safe harbors. Revenue Procedure 2024-21, issued by the IRS last April, sought comments on whether the IRS should use the Department of Housing and Urban Developmentโs median house price data to calculate the MRB/MCC income limits instead of FHAโs single-family loan limits.
