Section 8 (housing)

Section 8 is a federal housing assistance program for low-income families, elderly persons, and disabled individuals. The program is administered through the US Department of Housing and Urban Development (HUD). Section 8 traces its roots back to the 1937 US Housing Act. Over many decades, this act was modified into Section 8. Originally, the Housing Act paid for the creation of federal low-income housing developments. In contrast to that, Section 8 allows low-income tenants to live in any privately owned apartment complex, providing that it accepts federal funds as payment. Through Section 8, the government pays a pre-set portion of the rent, assisting low-income individuals with housing costs. In most cases, tenants utilizing Section 8 are responsible for no more than 30 percent of the rent. The rest is paid by the federal government.

In some cases, landlords are reluctant to rent to Section 8 tenants. The Section 8 approval process for apartments takes longer than traditional lease applications. During this period, landlords are not collecting rent. However, landlords also benefit from the program. Renting to Section 8 tenants guarantees about 70 percent of the rent will be paid by the government, and Section 8 tenants tend to stay in one place longer than other tenants.

Background

The history of Section 8 housing dates back to the Great Depression of the 1930s. During this period, the economy of the United States crashed. Record numbers of people were jobless and homeless. Houses were foreclosed upon, banks folded, and many people were unable to afford housing. Shantytowns, gathering of improvised housing, sprung up across the country. To help reduce the nation’s homeless population, Congress passed the 1937 US Housing Act. This act provided federal funds to build high-quality housing developments for low-income tenants. It was the first federal act designed to help low-income families find housing.

The US Housing Act was successful and helped reduce the homeless population of the United States. In 1961, the act was amended. Congress created the Section 23 Leased Housing Program. Under Section 23, low-income tenants could receive federal assistance without living in a specified low-income building. Instead, they could rent from a local housing authority. The tenant paid a portion of the rent, while the government paid the remainder directly to the housing authority.

In 1974, Congress once again amended the US Housing Act. This time, the government wanted to shy away from developing affordable public housing, furthering the goals of the Section 23 Leased Housing Program. However, the government still wanted to help individuals who were forced to spend too much of their pay on housing expenses. Under this program, federal funds could be used to pay a share of rent at any privately owned apartment building that was willing to accept federal funds as payment. This program was called Section 8.

Overview

Section 8 is a program that provides federal housing assistance to low-income families, elderly persons, and disabled individuals. Unlike previous federal housing assistance programs, individuals who qualify for Section 8 are not required to live in a federally sponsored housing authority. They can live in any privately owned apartment that accepts Section 8.

Under Section 8, low-income individuals are only responsible for paying a set portion of their housing expenses. This includes both rent and other associated costs. In most cases, tenants are not responsible for paying more than 30 percent of their housing expenses.

Before a location is approved for Section 8, the house or apartment must undergo an appraisal to ensure that the landlord is charging rent comparable to other local apartments. Landlords may still use their traditional tenant screening process, and may still deny a tenant for any legal reason. In some areas, it is illegal for a landlord to deny a tenant’s application for utilizing Section 8.

If a tenant utilizing Section 8 is accepted by a landlord, he or she pays the set portion of the rent to the landlord. The federal government then pays the remainder of the money owed directly to the landlord on behalf of the tenant. If the tenant fails to pay the portion of the rent on time, he or she may still be evicted, just as a tenant who pays the full monthly rent would be.

In most areas, utilizing Section 8 involves following set steps. First, the individual seeking assistance applies for the Section 8 Voucher Program. After approval, he or she will receive a voucher and can begin looking for an apartment. The tenant then goes through the normal apartment application process. If the tenant is accepted by the landlord, the apartment goes through an appraisal to ensure that it meets Section 8 requirements. If the appraisal goes well, the tenant may move in, and the federal government will pay part of the rent.

Some landlords are reluctant to rent to Section 8 tenants. Landlords worry that tenants who are unable to pay the full rent will not pay their allotted portion. Additionally, the approval process for Section 8 will take more time than the process for a standard lease application. During this period, the landlord is not collecting rent for the property. For this reason, some landlords may not want to rent to applicants utilizing Section 8.

Other landlords see Section 8 as a benefit and welcome tenants using it. Traditional tenants may default on their rent, leading to an eviction and loss of income for the landlord. In most cases, a landlord renting to someone utilizing Section 8 is guaranteed roughly 70 percent of the rent money from the government. Additionally, because of the difficulties associated with the renting process, most tenants utilizing Section 8 assistance will stay in one place longer than the average tenant.

Bibliography

Agadoni, Laura. “Should I Rent to Section 8 Tenants? A Guide to the Housing Choice Voucher Program.” Landlordology, 1 Nov. 2017, www.landlordology.com/section-8-tenants/. Accessed 9 Feb. 2025.

Barrymore, John. “How Section 8 Housing Works.” HowStuffWorks.com, 21 July 2008, home.howstuffworks.com/real-estate/buying-home/section-8-housing1.htm. Accessed 9 Feb. 2025.

Colley, Angela. “How to Become a Section 8 Housing Landlord – Requirements, Pros & Cons.” Money Crashers, 2018, www.moneycrashers.com/become-section-8-housing-landlord-requirements. Accessed 9 Feb. 2025.

Golhar, Abi. “Should You Accept Section 8 As a Landlord?” Forbes, 19 Oct. 2017, www.forbes.com/sites/forbesrealestatecouncil/2017/10/19/should-you-accept-section-8-as-a-landlord/#5c7d567a73e7. Accessed 9 Feb. 2025.

“Housing Choice Vouchers Fact Sheet.” US Department of Housing and Urban Development, www.hud.gov/topics/housing‗choice‗voucher‗program‗section‗8. Accessed 9 Feb. 2025.

"Section 8 Housing." USA.gov, 2 Dec. 2024, www.usa.gov/housing-voucher-section-8. Accessed 9 Feb. 2025. 

“Section 8 Program Background Information.” US Department of Housing and Urban Development, www.hud.gov/program‗offices/housing/mfh/rfp/s8bkinfo. Accessed 9 Feb. 2025.