(January 2026)

For years, Housing Nantucket’s Covenant Program has helped create and protect homeownership opportunities for year-round residents by ensuring homes remain attainable over time. As market pressures continue to grow, the Covenant Program remains one of the most effective tools we have to preserve long-term housing stability on the island.

Where the Program Stands Today

As of 2026, the Nantucket Housing Needs Covenant Program includes 122 covenant-restricted homes across the island. Each of these homes represents a household that has been able to stay rooted in the community – close to work, schools, and the people who make Nantucket home.

The goal of the program is simple but powerful: keep homes affordable from one owner to the next, so future generations of year-round residents continue to have a path to homeownership.

2026 Program Guidelines

For 2026, the Maximum Sales Price for a covenant-restricted home is $854,171.

To qualify for the program this year:

• Household income must be $245,250 or less
• Unrestricted assets must be below $427,085
• The transaction fee is $4,271, paid by the seller

These limits are updated annually to reflect current economic conditions while keeping the program accessible to households earning up to 150% of Nantucket’s Median Family Income.

How the Maximum Sales Price Is Set

Each year, Housing Nantucket recalculates the Maximum Sales Price using a formula that accounts for local income levels and prevailing mortgage rates.

For 2026:

• Nantucket’s Median Family Income is $163,500
• The program assumes a household earning 125% of the Area Median Income can spend 30% of income on housing. This provides a “window of affordability”- a deliberately lower assumed income level than the maximum income limit used in affordability calculations, so the maximum sales price is set below what the top eligible household could theoretically afford. This creates financial breathing room and avoids households being fully leveraged.
• That results in a target monthly mortgage payment of $5,109

Using a 6.99% interest rate and assuming 90% financing, that monthly payment supports a mortgage of $768,754. With a 10% down payment, the resulting Maximum Sales Price is $854,171.

For resale homes, if a current covenant homeowner originally purchased their home for more than the 2026 Maximum Sales Price, the resale price reverts to the original purchase price.

Why This Matters

The Maximum Sales Price within the Covenant Program adjusts year to year (sometimes up, sometimes down) but its purpose never changes. Over the long term, covenant-restricted homes provide a measure of stability and predictability in a housing market that continues to move further out of reach for many working households.

Covenant homes allow teachers, healthcare workers, tradespeople, and other year-round residents to stay on Nantucket, invest in their community, and build long-term roots without being pushed out by rising costs.

Looking Ahead

As we move into 2026, Housing Nantucket remains committed to strengthening and expanding the Covenant Program as part of a broader effort to support year-round housing. Each covenant home is one more step toward ensuring Nantucket remains a place where people can not only work, but live, grow, and stay.

To learn more about the Covenant Program or determine eligibility, visit our Covenant Program page or contact Housing Nantucket directly.