What Is Section 8 Housing?

Section 8 housing is a federally funded program that offers affordable and safe housing for low-income families and individuals. Moreso than a poor standard of living, the high cost of housing prompted the development of Section 8. Today, millions of low-income families live in clean, safe housing that they can afford.

History

During the Great Depression, the federal government instituted several housing assistance programs in response to the lack of affordable housing for millions of Americans. The Housing Choice Voucher Program, which is provided by the U.S. Department of Housing and Urban Development (HUD), is most often referred to as Section 8 in reference to the section of the Housing Act of 1937, where the program first appeared. The original intent of the Section 8 program is to help low-income families pay their rent without sacrificing safety or quality of living.

Features

There are some things about Section 8 that you must know in order to fully understand it. First, the tenants are required to pay rent in the amount of no more than 30% of their income, and federal money pays the rest to the landlord. In addition, the portion of the rent covered by federal money is limited by what is called "Fair Market Rent" or FMR. FMR is set by HUD, and determined based on three factors: geographic area, size of rental unit, and which party is responsible for utility bills. Finally, there is no time limit dictating how long a family or individual can participate in the Section 8 program.

Benefits

Section 8 housing has many benefits for both landlord and tenant. Landlords that choose to participate in Section 8 housing are required to submit to HUD housing quality standards (HSQ) to ensure that housing is clean and safe for living. By that same token, tenants participating in Section 8 must abide by certain rules or forever lose the assistance of Section 8. Landlords get well-behaved tenants who pay their rent on time, and low-income families and individuals are able to live in a clean and safe environment at a price they can afford.

Types

The Housing Choice Voucher Program, which is the major Section 8 program, allows participants to use one of two different types of vouchers. The project-based voucher allows participants to live in specific apartment buildings, whereas tenant-based vouchers allow participants to find housing units in the private sector. Tenant-based vouchers also have the unique exception of allowing participants to live anywhere in the United States where a Section 8 program is offered.

Effects

The positive effect of the Section 8 housing program is that low-income families are given an opportunity to live in an environment that is clean and safe from the crime that plagues low-income and public housing neighborhoods. In addition, Section 8 housing protects low-income households from the ever-increasing price of renting private properties.

Negative effects of Section 8 housing include the lack of time restraints on participation in the program. Initially intended to alleviate the difficulties of finding affordable housing for low-income families, Section 8 makes little, if any progress in transitioning these individuals from government-assisted living to independent living. With no time limits, many other needy families are denied access to this program because of lifetime participants.

Resources

• HUD on Housing Vouchers