Inclusionary zoning (IZ) is a land-use policy intended to enable some lower- and moderate-income households to live in middle- and upper-income communities. IZ policies either mandate or encourage real estate developers to incorporate into their market-rate developments the proportion of homes that are sold or rented at below-market prices in exchange for development rights or zoning variances.

IZ policies have been implemented in many states and localities within the United States and internationally. Most of the literature on IZ has attempted to assess how many IZ units have been produced and the effect of IZ on housing prices and on the production of the market- and below-market-rate homes. However, little research has examined the socially inclusive aspect of these policies. Two factors in particular the characteristics of neighborhoods in which IZ homes are located and the characteristics of schools to which IZ homes are assigned—presumably predetermine the potential for IZ programs to have their intended inclusionary effect. However, the simple adoption of an IZ policy within a high-cost housing market does not guarantee the production of IZ homes, the targeting of those homes to low-income recipients, or the location of IZ homes in high-cost neighborhoods or within catchment areas for high-performing schools.