Do rules that target vouchers on the neediest families discourage work?
No. Currently, 75 percent of vouchers must be issued to families that have incomes below 30 percent of the local median income at the time they enter the program. Congress imposed this targeting requirement because families with extremely low incomes are much more likely than other families to have severe housing needs. In addition, other federal housing programs are available that serve families with somewhat higher incomes. The Administration has argued that targeting discourages work because it prevents working families from receiving assistance. This is flatly incorrect. Very large numbers of working poor families qualify under the targeting requirement. The income of a full-time minimum-wage worker is only $10,700. As noted above, 30 percent of the median income for a family of four nationally amounts to an annual income of $17,250. Indeed, 30 percent of area median income is roughly equivalent to the federal poverty line. By definition, working-poor families have incomes below th
