Section 8 Housing Guide

Section 8 Introduction

Section 8 Housing, also known as Section 8, is a provision under the Housing Act of 1937 that enables low-income households in the United States to receive rental housing assistance from private landlords.

The Department of Housing and Urban Development oversees Section 8 programs. One of these programs is the Housing Choice Voucher Program, which offers tenant-based rental assistance, allowing tenants to relocate to another unit of minimum housing quality.

In 2018, approximately 2.2 million households received Section 8 Housing Choice vouchers out of the 5.2 million households that received rental assistance. While participation by landlords is not mandatory, some states have laws prohibiting discrimination based on income source.

Section 8 Housing also includes project-based rental assistance programs, where owners reserve units for low-income tenants with the government guaranteeing the difference between the tenant’s contribution and the rent amount. Leaving a subsidized project means losing access to the project-based subsidy.

Additionally, the HUD-VASH program, a collaboration between the Department of Housing and Urban Development and the Department of Veterans Affairs, provides around 10,000 vouchers annually, costing approximately $75 million, to homeless and vulnerable U.S. veterans. This program combines HUD-funded vouchers with VA-funded services like health care and counseling.

Section 8 Housing Program Summary

The primary program under Section 8 Housing is the voucher program, which offers two types of vouchers. One type is project-based, meaning it can only be used for a specific apartment complex. Public housing agencies can reserve up to 20% of their vouchers for this purpose.

The other type is tenant-based, allowing the tenant to choose a unit in the private sector. This type of voucher is not limited to specific complexes and can be used anywhere in the United States or Puerto Rico where a public housing agency operates a Section 8 Housing program.

The Section 8 housing voucher program allows individuals or families to use a voucher to locate and rent a unit in either a designated complex or the private sector. They are required to contribute a portion of the rent, usually 30% of their adjusted income.

Adjusted income refers to the household’s total income minus deductions for dependents under 18, full-time students, disabled individuals, elderly households, disability assistance, and medical expenses.

Section 8 Housing incorporates an asset test alongside earned income. If a Section 8 tenant possesses assets beyond a certain threshold, HUD will consider it as additional income, even if no interest income is received, such as from a bank account. This is termed “imputed income from assets” by HUD.

To calculate this imputed income, HUD uses a standard “Passbook Savings Rate” specifically for bank accounts. The inclusion of imputed income from assets can impact a tenant’s designated portion of rent by increasing their total income.

Section 8 Housing, also known as the Housing Choice Voucher program, provides financial assistance to eligible low-income individuals and families. Under this program, the Public Housing Agency (PHA) directly pays the landlord the remaining portion of the rent. Each year, the federal government assesses the rental costs and utility expenses in various communities.

These assessments result in the determination of Fair Market Rents (FMRs), which represent the combined amount of rent and utilities for medium-quality apartments of different sizes in a specific community. For instance, in 2012, the FMR for a 1 bedroom housing unit in San Francisco was $1,522, in New York it was $1,280, while in numerous other locations it was below $500.

Landlords are prohibited from charging an excessive rent or accepting payments outside of the agreed contract when renting to Section 8 Housing tenants. While landlords must comply with fair housing laws, they have the option to decline participation in the Section 8 Housing program.

Consequently, some landlords may choose not to accept tenants who receive Section 8 Housing assistance due to various reasons.

Individuals who participate in Section 8 Housing may have reservations about government interference in their affairs, particularly when it comes to undergoing comprehensive inspections of their premises by government personnel to ensure compliance with HUD’s Housing Quality Standards (HQS) and the potential need for any necessary improvements
a desire to charge rent for the unit above FMR

In some states, it may be against the law to deny rental to a tenant based solely on their participation in the Section 8 Housing program. Landlords can only use standard criteria such as credit history, criminal records, or previous evictions to disqualify potential tenants.

Additionally, it may also be unlawful to advertise rental properties with the phrase “No Section 8.” However, there are landlords who are open to accepting tenants who are part of the Section 8 Housing program.

a large available pool of potential renters (the waiting list for new Section 8 tenants is usually very long, see below)
Regular and generally prompt payments from the PHA for its share of the rent
tenants’ incentive to take good care of the property (PHAs require that tenants not damage rental properties. In many instances a tenant may be removed from the program if they owe money to a previous landlord).

Section 8 Housing, whether through vouchers or project-based assistance, mandates that all subsidized units adhere to the Housing Quality Standards (HQS). This requirement guarantees that families residing in these units have access to a secure and healthy living environment.

Consequently, this program not only benefits individual families but also contributes to the broader objective of community development by enhancing the condition of private properties owned by landlords. Or you can find section 8 waiting list here.

Section 8 Housing Application and Obligations

Applicants seeking Section 8 Housing vouchers can submit their applications at the housing authority office in their state, regardless of their location. While the specific rules may vary across different authorities, generally, individuals who reside within a particular area and receive a voucher from that jurisdiction can utilize it anywhere in the country.

However, individuals who are not residents of the issuing jurisdiction must live there for a minimum of 12 months before being eligible to relocate. Additionally, priority for Section 8 Housing vouchers is typically given to those who reside within the service area of the housing authority.

In numerous localities, the waiting lists for Section 8 Housing vouchers administered by Public Housing Authorities (PHAs) can be extensive, often consisting of thousands of households. It is common for applicants to endure waits of three to six years before obtaining a voucher, and in many cases, these waiting lists are closed to new applicants.

Occasionally, the PHAs open the waitlists for a brief period, typically around five days, which may happen as infrequently as once every seven years. Some PHAs employ a lottery system, where tens of thousands of individuals compete for a limited number of spots on the waitlist. These spots are allocated through weighted or unweighted lotteries, sometimes giving priority to local residents, individuals with disabilities, veterans, and the elderly. However, there is no guarantee that anyone will secure a place on the waiting list.