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Information on Low Income Housing

According to the National Low Income Housing Coalition (NLIHC), as of 2010, there is not a county in the nation where a full-time worker earning the local minimum wage can afford to rent a one-bedroom apartment at market rate. In order to afford a two-bedroom dwelling at the national Fair Market Rent (FMR), you need to earn a full-time hourly wage of $18.44. Given these numbers, demand outstrips the supply of available low-income housing.

  1. Types

    • There are two main types of low-income housing programs funded by the United States Government: Public housing and the Housing Choice Vouchers (HCV) program. For both programs, the Department of Housing and Urban Development (HUD) is responsible for dividing federal money, appropriated by Congress, among the states, who funnel it to local governments. Local governments then work with non-profits, community development groups, private builders and low-income residents to either build low-income units or distribute HCVs.

    Public Housing

    • Public housing is commonly referred to as "housing projects." As of 2010, HUD estimates that 1.2 million households reside in public housing units, operated by about 3,300 local housing authorities. Public housing units are government-funded dwellings--which can come in the form of single-family homes to high-rise apartment complexes--offered at rents low-income individuals, the elderly and persons with disabilities can afford. For eligibility purposes, which vary based on local conditions, HUD categorizes you as "lower income" if you are at 80 percent and "very low income" at 50 percent of the median income for the area you wish to live in.

    Housing Choice Vouchers Program

    • Distinct from the public housing program, HUD now calls what many people know as "Section 8 Housing," the Housing Choice Vouchers (HCV) program. Under the HCV program, the federal government, through local housing authorities, provides rent subsidies to low-income individuals. Individuals can use these vouchers to secure rental housing from private landlords who accept HCVs. You are eligible, explains HUD, as long as your family income does not surpass 50 percent of the median income of the county or metro area where you wish to live. Adjusted for local conditions, the subsidy, generally, equals the difference between a unit's maximum allowable rent and 30 percent of a families adjusted income.

    Significance

    • Based on an analysis of 2008 data, NLIHC believes there is a major shortage of low-income (and otherwise affordable) housing. They estimate "9.2 million extremely low income (ELI) renter households" at or below 30 percent of their area's median income, but only 6.1 million rental units they can secure with their income. NLIHC uses the accepted benchmark of putting no more than 30 percent of your income towards housing costs.

    Affordable Housing

    • To understand the nuance of the apparent low-income housing crisis, you must draw a distinction between low-income and affordable housing. Affordable housing, as Brookings Institution housing expert Anthony Downs points out, is usually too expensive for low-income households. HUD's HOME program provides about $2 billion annually to states and municipalities to construct affordable housing. Whether you qualify for an affordable unit or not, however, depends on where you sit in relation with your area's median income. In San Francisco, for examples, if you are single you are considered "low-income" for HOME purposes if you earn under $60,200 a year. In Fresno, California, that number drops to $31,550. Simply put, affordable housing, despite the name, is not necessarily intended or financially feasible for individuals and families with extremely low incomes, relative to their area's median.

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