How Much Income Do You Need to Qualify for Section 8 Housing?
Communities that participate in the Section 8 housing program establish eligibility based on family size and income. If you qualify, the program provides a monthly subsidy directly to your landlord, leaving you with a home that meets Section 8 safety and maintenance requirements and a rent payment you can afford. The first step in the application process involves meeting with a Section 8 representative to review and verify your income.
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Availability
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Although Section 8 is a federal program, it is not available in every city. You can determine whether your community participates by calling your local housing authority or visiting the U.S. Housing and Urban Development (HUD) website and viewing the Public Housing Agency section.
The Facts
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Section 8 is only for individuals and families that qualify with very low income. As a result, before making adjustments for family size, a basic requirement for Section 8 Housing is that your household's total annual before-tax (or gross) income cannot be more than 50 percent of the median income for the county or for the area in which you live. For example, as of 2011, the median income level for La Crosse County, Wis., is $63,500, so the maximum eligible income for this area before adjusting for family size is $31,750. After making this adjustment, income limits range from $22,250 for a single person to $41,950 for a family of eight persons. Annual gross income includes unearned income, earned income and income you and other adult family members receive from assets.
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Preferences
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In most cities, you are put on a waiting once your local housing authority establishes your income eligibility. However, income level and your current living arrangements determine your place on the waiting list. According to HUD, qualifying under any one of three preference factors places you at or near the top the list. In order of preference, these include: being currently homeless or living in substandard housing, currently spending more than 50 percent of your monthly income on rent payments, and being involuntarily displaced, such as facing an eviction.
Subsidy Determination
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Your income and fair market rent standards for your area determine the amount of the rent subsidy for which you qualify. First, HUD regulations require that you contribute 30 percent of your gross monthly income toward your rent payment. Your rent subsidy depends on the fair market rent in your area according to the number of bedrooms you require for your family size. For example, if you live in La Crosse County, Wis., have a gross monthly income of $1,200 and require a three-bedroom rental, which, as of 2011, has a fair market rent of $860, you are responsible for paying 30 percent of your gross monthly income, or $360, toward your rent. Your subsidy will cover the remaining $500. If rent for the unit you choose is above this amount, you pay the extra, but it cannot be more than 40 percent of your monthly gross income. As a result, the most you can pay out-of-pocket each month is $480.
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