Nantucket Covenant Program 2026: Income Limits, Prices & Eligibility Guide

01/12/2026

Quick Summary

The Nantucket Covenant Program is a deed-restricted housing initiative designed to support year-round residents in purchasing homes on Nantucket. It sets income and asset limits to determine eligibility and uses an affordability formula to establish a maximum 2026 home price of $854,171. The program includes strict resale rules to preserve long-term affordability and currently covers 122 homes across the island. By maintaining housing access for local workers and families, it helps sustain Nantucket as a year-round community rather than a seasonal destination.

The Nantucket Covenant Program is a deed-restricted affordable housing initiative designed to support year-round residents in purchasing homes on Nantucket. Also known as the Nantucket Housing Needs Covenant Program, it helps maintain a stable local workforce by keeping homeownership attainable for qualifying buyers.

As of 2026, the program includes 122 covenant properties located across the island. These homes are subject to income limits, asset caps, and resale restrictions that ensure long-term affordability for future residents.

What Is the Nantucket Covenant Program?

The Nantucket Covenant Program is a housing initiative created to preserve year-round residency on the island. It provides a structured path to homeownership for qualified buyers who might otherwise be priced out of the market.

Each property is deed-restricted, meaning it must follow specific rules regarding purchase price, resale value, and buyer eligibility. These restrictions are enforced to keep housing accessible for future generations of island residents.

Who Qualifies for the Program in 2026?

To qualify for the 2026 Nantucket Covenant Program, buyers must meet both income and asset requirements.

Eligible households must have:

Total household income of $245,250 or less

Unrestricted assets not exceeding $427,085

These guidelines ensure that homes are reserved for moderate-income buyers who live and work on the island. Applicants must also demonstrate the ability to sustain long-term homeownership under the program’s affordability structure.

2026 Maximum Home Price & Affordability Breakdown

For 2026, the maximum allowable sales price under the Nantucket Covenant Program is $854,171. This cap is based on a standardized affordability formula established by the Nantucket Housing Needs Committee.

Historical Covenant Program Prices (2003–2026)

The program’s pricing structure is periodically adjusted to reflect changes in income levels, interest rates, and market conditions. These updates help maintain balance between affordability and financial feasibility for buyers.

2026 Calculation Overview

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

Maximum Covenant Sales Price: $854,171

The calculation assumes that no more than 30% of gross annual income is allocated toward housing costs, combined with a 90% financing structure. This ensures payments remain aligned with long-term affordability standards.

Resale Rules & Restrictions

Resale within the Nantucket Covenant Program follows strict guidelines to preserve affordability.

If a homeowner originally purchased a covenant property above the current maximum price, the resale value may revert to the original purchase price rather than the updated cap. This rule prevents rapid price escalation and ensures the property remains accessible to eligible buyers in future transactions.

These restrictions are a key part of maintaining the program’s integrity and supporting long-term housing stability on the island.

Why the Nantucket Covenant Program Matters

Housing affordability is one of the most important issues on Nantucket. The Covenant Program plays a critical role in supporting year-round residents who contribute to the island’s schools, businesses, and local services.

Without programs like this, many essential workers would be unable to live on the island due to limited inventory and high market prices. The program helps preserve community balance by creating a sustainable path to ownership for local families.

It also strengthens the long-term social and economic fabric of Nantucket by ensuring that the island remains a living community, not just a seasonal destination.

If you are exploring whether the Nantucket Covenant Program may be right for you, connect with our team at Great Point Properties. We can help you understand eligibility, review available covenant homes, and guide you through the process of finding a property that fits both your needs and your long-term goals on Nantucket.

FAQs

1. What is the Nantucket Covenant Program?

It is a deed-restricted affordable housing program that helps qualified year-round residents purchase homes on Nantucket.

2. Who is eligible for the program?

Households earning $245,250 or less with assets under $427,085 may qualify, subject to program rules.

3. How is the maximum home price determined?

It is based on income, interest rates, and affordability formulas established by the Nantucket Housing Needs Committee.

4. How many covenant homes exist on Nantucket?

There are currently 122 covenant properties across the island.

5. Can covenant homes be resold at market value?

No. Resale prices are restricted to maintain long-term affordability.

6. What happens if a home was originally purchased above the current cap?

In some cases, the resale price may revert to the original purchase price instead of the updated maximum.

7. Why does the program exist?

It helps ensure that year-round residents can continue to live and work on Nantucket despite rising housing costs.