About Subsidized Housing

Subsidized housing helps many poor families who would otherwise have difficulty affording rent to gain access to quality housing. The federal Department for Housing and Urban Development provides several different programs to make housing more accessible to low-income individuals and families. Learn more about the differences between Section 8 subsidized rentals and public housing provided by state and local housing authorities.

History

The most significant housing subsidy program in the United States today is Section 8. It was created after the passage of the Housing and Community Development Act of 1974, which provided partial compensation for rent payments to landlords enrolled in the program. Section 8 replaced a number of Depression Era initiatives to simplify the process of getting access to subsidized housing.

Function

Before gaining access to the program, a family or individual needs to both apply for the program and be making below the maximum income allowed by the program for their state. A reference link to that data listed by state is located in Additional Resources, below. After being approved, the tenant can find a landlord that accepts Section 8 tenants. After that, the tenant will be required to pay between 30 and 40 percent of his monthly income in rent, with the rest covered by the federal government.

Features

The Section 8 program is of limited size, and as such the waiting list is relatively long. This makes it so that many of the people eligible are not able to get into the program. Also, the pool of landlords that join Section 8 is limited relative to ones who choose not to join it. There are no time limits on remaining a part of the program, but if landlords can prove that tenants either damaged the apartment or violated other terms of the agreement, they can be removed from the program. In many states, felons are forbidden or restricted from Section 8 membership. Check the resources section below for a tool to find Section 8 apartments near you.

Types

The other major type of subsidized housing in the U.S. is public housing. These projects are maintained by state housing authorities, which are partially funded by the federal government. Find the contact information of your state's housing authority in Additional Resources, below. Public housing is often difficult to join without being born into the program. There are also some apartments subject to rent control, which forbids any increases in rent. Those cannot be legally transferred to new tenants, and the rent control status is removed after the current tenant either dies or departs.

Considerations

Living in subsidized housing is not always a sensible choice for poor families--even those with very low incomes. In many areas, the Section 8 subsidies are not significant enough to matter relative to the private market price of the housing. In addition, it can be difficult to predict when you will be granted entry to the various subsidy programs. The income limits make it so that families with unpredictable incomes may find that they lose their status unless they cut back on their business. Consider your options carefully if you are thinking about joining a public housing program.

Resources

• HUD: Section 8 Income Limits by State
• HUD: Finding a Section 8 Apartment
• HUD: Applying for Public Housing in Your Area