- Ronald Reagan's administration introduced housing vouchers, similar to Section 8 certificates, which offer a rent subsidy for low-income families. Congress worked on a system that protected landlords from losing property value during a time of inflation, while still offering rental assistance to low-income families.
- The value of the housing voucher is always the same as the fair market rent, which is an appraisal rent in that area for an apartment of equal size. The housing voucher program allows the family to receive a housing subsidy equal to the difference between 30 percent of its income, and the value of the housing voucher.
- The landlord has a guaranteed rent every month and rent is never lower than fair market value, while those holding housing vouchers can find accommodations in a safe area, not having to live in poverty-stricken, high-crime areas where public housing and Section 8 apartments are commonly located.
- The housing voucher has a value that allows the family to pay 30 percent of their income on rent, but if the rental unit is not equal to the voucher amount, they may pay a different amount for rent. For instance, if two families hold a housing voucher for $400 and have an income of $1,000 a month, they will pay $300 for rent. If one family finds an apartment for $350, the family will pay $50 less than 30 percent of their income. However, if the other family finds an apartment for $500, they will pay $400 for rent because the rent is $100 dollars over the housing voucher amount.
- Families may use the housing voucher anywhere in the United States, as long as the applicant lived in the Public Housing Agency (PHA) when the family received the voucher. If the family does not live in the jurisdiction of the PHA when they issue the housing voucher, then they will have to lease an apartment in the jurisdiction for 12 months before using the voucher elsewhere in the United States.
- Vouchers indicate the size of apartment the family may rent, based on the family's composition. If the family holds a two-bedroom voucher and gets a larger apartment, the voucher will not upgrade and they will pay more in rent, whereas if a family with a two-bedroom voucher chooses a one-bedroom apartment, the voucher size downgrades to a one-bedroom voucher.
