2 million people across the United States received rental assistance under the Section 8 Housing programs in 2023. It’s a government program that assists low-income families to find safe and stable housing.
The Section 8 program, run by the U.S. Department of Housing and Urban Development (HUD), is managed locally by Public Housing Agencies (PHAs). The program ensures that all approved housing meets specific Housing Quality Standards (HQS).
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What Is a Section 8 Housing?
Section 8 housing, also known as the Housing Choice Voucher program, is a federal assistance program. It helps low-income families, seniors, and disabled individuals afford safe and decent housing in the private rental market.
How Does Section 8 Work?
- Rental Vouchers: If you qualify for the program, you’ll receive a rental voucher. This voucher specifies the monthly amount the program will subsidize your rent.
- Find Your Place: With your housing vouchers, you can choose an apartment, townhouse, or single-family home. However, the property must meet the program’s quality and safety standards.
- Share the Rent: You’ll pay a portion of your rent, around 30% of your income. The voucher covers the rest and goes directly to your landlord.
- Homeownership Assistance: If you buy a home, Section 8 can help with your mortgage payments. Instead of rent, the voucher will subsidize part of your monthly mortgage payment.
What Is the Difference Between HUD and Section 8?
Section 8 and HUD housing are both programs from the Department of Housing and Urban Development (HUD). While both aim to make housing more affordable, they work in different ways.
| Features | HUD Housing | Section 8 Housing |
| Type of Houses | Public housing developments owned and managed by the government | Rental assistance for privately owned houses |
| Who Manages Houses | Local Public Housing Authorities (PHAs) | Landlords who agree to participate in the program |
| Choice of Houses | Limited to specific housing developments | Wider choice of apartments, condos, single-family homes, and duplexes in the private market |
| Income Requirement | Up to 80% of Area Median Income | Less than 50% of Area Median Income (preference given to below 30%) |
In simple terms, HUD housing provides government-owned housing to those who qualify. Section 8 offers vouchers that can be used as rent subsidies in privately owned housing. This gives the latter participants more choice in where they live.
Can You Buy a House With Section 8?
Yes, Section 8 has a homeownership program called the Housing Choice Voucher Program(HCV). This program allows qualified participants to use vouchers towards monthly mortgage payments for an approved home.
Instead of paying rent, a portion of your subsidy goes toward your mortgage. This makes homeownership more affordable. However, you still need to qualify for a mortgage on your own. The standard mortgage approval process applies.
It’s important to note that the subsidy to buy a house with Section 8 is available for a limited period. The program provides assistance for up to 15 years. After this period ends, you become responsible for paying the full mortgage amount.
Before you apply, consider using a House Worth Estimator to get an estimate of your home’s value. This will help you better understand potential mortgage payments and plan for the future.
What Are the Section 8 Eligibility Requirements?
To qualify for Section 8, you must meet the following requirements:
- Income: Your income must be 50% or less than the median income for your area. Income limits are different based on family size and location. Priority is given to those earning 30% or less than the median income of the area.
- Citizenship Status: You must be a U.S. citizen, legal permanent resident, or have eligible immigration status.
- Criminal Background Checks: The PHA will check the criminal history of every adult in your household. Individuals with a history of drug-related or violent crimes may not qualify.
- Other factors: The PHA will review your credit history, rental history, and family situation. Some housing agencies might prioritize certain groups, like families with children or homeless individuals.
How to Apply For Section 8 Housing?
If you qualify for the Section 8 homeownership voucher program, here are the steps you can take to apply for the program:
1. Find your Local PHA
PHA administers this program on a local level and approves housing as per the HQS standards. You can search for your local PHA by city or zip code on the HUD website.
2. Determine Eligibility and Submit the Application
PHAs check if your household income meets the program limits. Complete the Section 8 housing application with the PHA, and provide details on income, citizenship, criminal history, etc.
3. Attend Counseling Sessions
After applying, attend PHA-approved counseling sessions on homeownership and housing. These sessions provide information on mortgage financing, home maintenance, and other key aspects of homeownership.
4. Get Mortgage Pre-Approval
Work with a lender to get pre-approved for a mortgage. The PHA will provide you with a homeownership voucher for mortgage costs.
5. Find an Approved Home
After the PHA approves the home, finalize the purchase using your voucher to cover part of the mortgage costs. The PHA will then make monthly payments directly to your lender.
Bottom Line
If you need help finding affordable housing, Section 8 can be a great option. It provides vouchers that either cover part of your rent or help with mortgage payments if you buy a home. This makes it easier to afford a house.
To get started, contact your local Public Housing Agency (PHA) for details on how to apply and check your eligibility. For a smoother home-buying experience, get pre-approved for a mortgage early to ensure you’re well-prepared.
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FAQs
How does section 8 housing work?
If you qualify, you receive a section 8 voucher specifying the amount the program will pay towards your rent. You then find a house that meets program standards. The voucher then will subsidize a portion of your monthly rent based on your income.
What is the most rent Section 8 will pay?
The portion of rent section 8 covers depends on your income, family size, and local fair market rent. There's no set maximum, but you are required to contribute up to 30% of your income towards rent.
Is section 8 and HUD the same thing?
No. Section 8 and HUD are programs offered by the Department of Housing and Urban Development, but they differ. Section 8 offers vouchers for private rentals, while HUD housing provides assistance programs for government-owned apartments.
