2026 Nantucket Covenant Program

01/12/2026

Nantucket Covenant Program Summary (2026)

The Nantucket Covenant Program, officially known as the Nantucket Housing Needs Covenant Program, is a deed-restricted affordable housing initiative designed to help year-round residents purchase homes on Nantucket. The program currently includes 122 covenant properties located throughout the island.

For 2026, the maximum sales price under the Nantucket Covenant Program is capped at $854,171. To qualify, buyers must meet specific income and asset requirements. Eligible purchasers must have a total household income of $245,250 or less and unrestricted assets not exceeding $427,085.

A 2026 Nantucket Covenant Program transaction fee of $4,271 applies and is paid by the seller at closing.

How the Nantucket Covenant Program Maximum Sales Price Is Calculated

The Nantucket Covenant Program's maximum sales price is determined using a standardized affordability formula established by the Nantucket Housing Needs Committee.

The calculation is based on:

• 30% of gross annual income

• A household earning 125% of Nantucket’s Median Family Income

• A mortgage structured with 90% financing

This formula establishes an affordable monthly housing payment, which is then used to calculate the maximum allowable purchase price under the Nantucket Covenant Program.

2026 Nantucket Covenant Program Pricing Breakdown

• Nantucket Median Family Income (MFI): $163,500

• 125% of MFI: $204,375

• Target Monthly Housing Payment: $5,109

• Mortgage Interest Rate Used: 6.99%

• Maximum Mortgage Amount: $768,754

• Required Down Payment (10%): $85,417

• 2026 Maximum Covenant Sales Price: $854,171

Nantucket Covenant Program Resale Rules

For resale properties within the Nantucket Covenant Program, pricing restrictions continue to apply. If a current covenant homeowner originally purchased the property for more than the current maximum sales price, the maximum resale price reverts to the original purchase price, not the newly calculated cap.

These resale rules ensure long-term affordability and preserve the integrity of the Nantucket Covenant Program for future buyers.