Section 8 apartment/elderly home with a 16.40% Cap Rate??!!!!!

[Jairo Freyre]

A friend and I frequently browse through loopnet to analyze deals on properties as practice should we ever decide to pull the trigger and we ran across a $1.4 million dollar 30 unit property in Florida with a cap rate of 16.40% which blew our mind. The property comes with $424,000 tax credit which drives the cap rate up to 16.4 but without the tax credit it is at 5.93%. I listened to the latest podcast about the guys who own a section 8 property that was a non-profit so I'm wondering if that has something to do with the immense tax credit.

My questions are how would a property accrue such a large tax credit and would there be any benefits to removing the tax credit? I assume you would want to keep it but why would the broker list the cap rate without the tax credit? I'm just beginning my research on this property so if anyone could point me in the right direction I would appreciate it. Thanks!

I'll post what my research uncovers a little later on.