What Is the Housing Voucher Program?
The Housing Choice Voucher program is a federal housing assistance program developed to help low-income families, the elderly, and disabled individuals find and pay for safe, affordable housing in the private market. The program works by providing direct payments to participating landlords who accept housing vouchers, with the resident paying the difference between the total rent and the amount the voucher covers. Under the U.S. Department of Housing and Urban Development (HUD), housing choice vouchers help promote economic stability and improved living conditions by subsidizing a portion or all of a resident’s rent.
What Is a Housing Voucher?
A housing voucher provides housing assistance to people and families with very low incomes. Specifically, Section 8 housing vouchers are HUD-funded through public housing agencies (PHAs) that pay landlords on behalf of voucher recipients.
This program plays a crucial role in decreasing homelessness by subsidizing housing assistance payments for low-income families who would otherwise not be able to afford housing. It ensures families spend no more than 30% of their income on rent while the voucher covers the remainder.
Benefits & Why Housing Vouchers Matter
When individuals are housing insecure, it can lead to various undesirable outcomes, not just for the person but for the community as a whole, especially when it is widespread. The housing choice voucher programs aim to:
- Provide extremely low and low-income individuals and families with safe and sanitary housing by keeping their rent payments affordable.
- Improve the fair housing market for individuals and families.
- Promote individuals’ freedom to choose where they live.
- Provide prompt subsidy payments to private property owners to incentivize them to accept housing choice vouchers.
- Improve economic stability and quality of life by allowing recipients to use their income on other beneficial expenses such as education, healthcare, childcare, and other necessities.
How the Housing Voucher Program Works
Overview of the Program’s Functionality
The housing voucher program operates on a subsidy mechanism. Once the PHA has verified an applicant’s eligibility and they’re selected to receive a voucher, it’s up to the applicant to find the best housing for their needs. The housing they choose can be a single-family unit, apartment, or townhome. To ensure they stay within the limits of their voucher, the PHA provides guidance on what size unit they’re eligible for based on household size and composition.
Before the PHA approves the housing a family has chosen, they will inspect it to ensure it meets the health and safety standards provided by HUD. Once the housing is approved, the PHA agrees to pay a certain amount of the resident’s rent to the landlord on their behalf so that the resident is only spending a maximum of 30% of their income on rent.
Eligible Housing Options
Families can choose from single-family homes, apartments, or townhomes as long as they meet the HUD’s Housing Quality Standards (HQS) to ensure safe, affordable, and sanitary housing.
For landlords to qualify their property for Section 8 housing choice vouchers, they’ll need to ensure the following:
- The property is in good condition and can pass the HQS inspection covering 13 primary areas, including water supply, fire safety, and sanitation.
- Provide the proper documentation that includes proof of property ownership, adequate insurance coverage, proof that their rent meets the fair market rate for the area, and proof of responsible property ownership through background documentation and rental history.
Eligibility Requirements for Section 8 Housing Vouchers
Because Section 8 housing choice vouchers were created to provide housing assistance to low-income families, an interested applicant’s income cannot exceed a certain amount, which is dependent on where they live and set by HUD. One of the many responsibilities of a community’s Public Housing Authority is to inform applicants of the income limits for their area and household size.
Income Limits
The Department of Housing and Urban Development sets income thresholds at 30–50% of the area median income (AMI). To qualify, a family’s income cannot be more than 50% of their county or metropolitan area’s AMI. HUD is committed to ensuring extremely low-income families can find affordable housing by guaranteeing at least 75% of a PHA voucher goes to applicants with an income of 30% or less of the AMI.
While it’s the PHA’s responsibility to pay the subsidy directly to the landlord, the resident needs to choose a rent that will require no more than 30% of their monthly income or ensure they can cover the difference between what the PHA pays and what the landlord charges.
Citizenship and Immigration Status
Those interested in the housing choice voucher program must be U.S. citizens or eligible non-citizens (lawful permanent residents, refugees, etc.), which the PHA verifies as part of the application process. Other circumstances that can affect a U.S. citizen’s eligibility include having a criminal record. It doesn’t immediately disqualify you from the program, but the severity of the crime and its timing are significant considerations.
Additional Considerations
Depending on a community’s needs and priorities, the Public Housing Authority has the power to establish local preferences that prioritize the neediest families by moving them ahead of others on the waiting list. Examples of preference qualifications include those experiencing homelessness or involuntary displacement, living in substandard housing, veteran or military status, or paying over 50% of their income towards rent.
Step-by-Step Guide: How to Apply for a Housing Voucher
Step 1: Contacting Your Local PHA or Project-Based Section 8 Community
Tips for Securing a Housing Voucher
Navigating Long Waiting Lists
- Stay on top of waiting list openings so you can submit your application as soon as possible.
- Apply to multiple PHAs if possible.
Building a Strong Application
- Make sure all of your documentation and information is accurate to avoid delays in processing your application.
- Keep detailed records of previous on-time rent payments, maintenance records, and inspection reports.
Communicating with Landlords
- Explain the benefits of the housing choice voucher program to landlords you’re interested in renting from but do not currently participate in the program.
- Address participating landlords’ concerns regarding rent payments and property inspections to increase your chances of being accepted as a resident.
Common Questions About the Housing Voucher Program
Challenges of the Housing Voucher Program
Like all government assistance programs, housing choice vouchers are not without their challenges and criticisms. The United States has been experiencing a shortage of affordable housing for a while now, with demand far outpacing the supply. This has only exacerbated the limited availability of vouchers and increased the long waiting times. Some PHAs even close applications once their waitlist exceeds a certain amount of applicants until they have vouchers available again.
There’s also the challenge of having enough participating landlords in the program. While Section 8 housing has its benefits for landlords, meeting HUD standards and regulations every year can be a deterrent. Some landlords may also have misconceptions about Section 8 housing communities that cause them to view the program negatively.
Alternatives to Housing Vouchers
If you’re in need of housing assistance, but don’t meet Section 8 housing requirements, there are other HUD programs you may be eligible for.
Public Housing
Public housing is another government program that provides housing assistance. The difference between Section 8 housing and public housing is property ownership and management. These affordable housing properties are owned and managed by the government, which is the Public Housing Authority. As you know by now, Section 8 is private housing where the owner agrees to accept housing choice vouchers from the PHA to cover a portion of the resident’s rent.
Project-Based Vouchers
As mentioned earlier, project-based vouchers are tied to the unit, not the resident. Additionally, there are other factors—like age or having a disability—that can dictate who is eligible for a project-based voucher. As with housing choice vouchers, there are income limits set by HUD based on the AMI.
Special Purpose Voucher Programs
Special Purpose Vouchers (SPV) are separate from regular vouchers in that they are designated to help specific portions of the low-income population, including veterans, non-elderly disabled (including those diagnosed with a mental illness), foster youth, violent crime witnesses, and more.
Additional Considerations
Government assistance programs aren’t the only programs that help low-income families find affordable housing. Local initiatives and non-profits also provide meaningful assistance through grants and rent relief programs. Some examples include The Salvation Army, United Way, Community Action Agency, Catholic Charities USA, and Family Promise.
How the Housing Voucher Program Impacts Communities
It’s no secret that poverty and homelessness are a drain on communities and their resources. By reducing the unhoused population and supporting local landlords, housing choice vouchers create affordable housing for individuals and families as well as a clearer path to economic stability and upward mobility.
Closing Thoughts
The housing choice voucher program is an essential governmental assistance program that helps low-income families, elderly individuals, and people with disabilities access safe, affordable, and sanitary housing. It promotes economic stability, improved quality of life, and community growth by subsidizing rent costs and allowing participants to spend more of their income on essentials like healthcare, childcare, healthier foods, and more. To apply for a housing voucher, visit HUD’s PHA directory or contact your local Public Housing Authority today.
