section 8 rental
voucher program

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Summary:
The Section 8 Rental Voucher Program increases affordable housing choices for very low-income households by allowing families to choose privately owned rental housing. The public housing authority (PHA) generally pays the landlord the difference between 30 percent of household income and the PHA-determined payment standard-about 80 to 100 percent of the fair market rent (FMR). The rent must be reasonable. The household may choose a unit with a higher rent than the FMR and pay the landlord the difference or choose a lower cost unit and keep the difference.

Purpose:
Several assistance programs exist under Section 8. Together, the voucher and certificate programs help more than 1.4 million households in the United States. The administering PHA or governmental agency inspects the housing units to make sure they comply with HUD quality standards. The voucher program is similar to the Section 8 certificate program but gives households more choices, especially in high-demand markets where landlords may be reluctant to accept HUD's FMR level.

Type of Assistance:
Through the Section 8 Rental Voucher Program, the administering housing authority issues a voucher to an income-qualified household, which then finds a unit to rent. If the unit meets the Section 8 quality standards, the PHA then pays the landlord the amount equal to the difference between 30 percent of the tenant's adjusted income (or 10 percent of the gross income or the portion of welfare assistance designated for housing) and the PHA-determined payment standard for the area. The rent must be reasonable compared with similar unassisted units.

Eligible Grantees:
PHAs may apply for funding to operate Section 8 programs. Since the start of the Indian Housing Block Grant program, Indian housing authorities are no longer eligible for Section 8 programs.

Eligible Customers:
HUD contracts with housing authorities to provide Section 8 voucher assistance to very low-income households, households already assisted under the Housing Act of 1937 and households with incomes up to 80 percent of area median that qualify to receive a voucher in connection with other HUD programs. HUD determines median income levels for each area annually.

Eligible Activities:
A system of "portability" allows families to use the assistance outside the boundaries of the PHA that originally admits a family. HUD pays the administering agency an administration fee to cover costs of running the program, including accepting and reviewing applications, recertifying participants, and inspecting the rental units for quality. Vouchers could be used for homeownership under Section 8(y), but this has not yet been implemented.

Application:
Housing authorities apply for funding by responding to Notices of Funding Availability (NOFAs) published in the Federal Register. Each NOFA identifies allocation areas, amounts of funds available per area, and the selection criteria for rating and ranking applications.

Funding Status:
Currently, HUD is not accepting new applications; it is only extending expiring commitments and vouchers dedicated for special purposes. HUD spent an estimated $15.5 billion for all Section 8 programs in fiscal year (FY) 1996 and $16.7 billion in FY 1997.

Technical Guidance:
The Section 8 Rental Voucher Program is authorized by the U.S. Housing Act of 1937, Section 8(b) (1) for existing housing and Section 8(o) for vouchers. Regulations are found in 24 CFR Part 982. It is administered by HUD's Office of Public and Indian Housing.

For More Information:
Additional information can be obtained by contacting HUD's Office of the Deputy Assistant Secretary for Public and Assisted Housing Operations, Office of Rental Assistance. Or refer to HUD's Homes for links to additional information to serve the needs of low-income households. For information about the Section 8 Rental Voucher Programs.

Success Stories:
As of September 30, 1996, approximately 400,000 families were being assisted by the voucher program. For examples of success stories, see Tenant-Based Housing Assistance Works (#6584); Section 8 Rental Voucher and Rental Certificate Utilization Study: Final Report (#6505), Office of Policy Development and Research; or Learning From Each Other: New Ideas for Managing the Section 8 Certificate and Voucher Program (#7341). All are available from HUDUSER.