2 million people across the United States received rental assistance under the Section 8 Housing program in 2023. It’s a government program that assists low-income families to find safe and stable housing.
Section 8 program is provided by the U.S. Department of Housing and Urban Development (HUD) and 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 Section 8 Housing?
Section 8 is a rental assistance program funded by the U.S. Department of Housing and Urban Development (HUD). 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, you’ll receive a rental voucher. This voucher specifies the monthly amount the program will subsidize your rent.
- Find Your Place: With your voucher, 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.
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 expires within 15 years. After this period ends, you become responsible for paying the full mortgage amount yourself.
What Are the Section 8 Eligibility Requirements?
To be eligible for this program, 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. People with a history of drug-related or violent crimes may not qualify.
- Other factors: The PHA will consider 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.
2. Determine Eligibility and Submit the Application
PHAs check if your household income meets the program limits. Complete the application with the PHA, and provide details on income, citizenship, criminal history, etc.
3. Attend Counseling Sessions
After applying, you must attend PHA-approved homeownership and housing counseling sessions. 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’re facing challenges affording a house, Section 8 offers a helping hand. This program provides rental vouchers to low-income families, seniors, and disabled individuals. The vouchers help pay part of the rent or even a home mortgage.
Understanding the eligibility criteria and application process of the HCV Program is key. It will help you successfully secure a house through the program.
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FAQs
What does Section 8 mean?
Section 8 is a US government program that helps low-income families afford housing in the private market.
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. Both 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.
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