What is Section 8?
The Section 8 program is financed by the U.S. Department of Housing and Urban Development (HUD) to provide rental assistance to very low income families. An eligible Section 8 applicant receives assistance by means of a Voucher which is used to rent a dwelling. The dwelling the applicant chooses must meet the Section 8 Housing Quality Standards and the rent must be reasonable. The owner of the dwelling must agree to abide by HUD/Section 8 Regulations. Section 8 tenants pay about 30% of their income towards their rent and HUD pays the rest of the rent to the owner.
Section 8 (also known as Housing Choice Vouchers) is a HUD program, which provides rental payment assistance to qualifying tenants. Section 8 pays rent, which exceeds 30-40% of a tenants adjusted monthly income. For example, if your landlord charges $500 per month for rent and you make $1,000 per month, you would pay $300 (30% of your monthly income) and Section 8 would pay $200 (the difference between what you can afford and what your landlord charges).
The Housing and Community Development Act of 1974 amended the United States Housing Act by adding the Section 8 program which provides a subsidy to bridge the gap between a low-income tenant’s means and the cost of private housing. Congress designed the program to encourage new housing construction and substantial rehabilitation on one hand, and to utilize existing housing on the other.
The Section 8 program, now called the Housing Choice Voucher Program, is the federal government’s major program for assisting very low-income families, elders, and people with disabilities to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments.
