Learn About HUD Housing Programs

What HUD Housing Programs Are and How They Work

The U.S. Department of Housing and Urban Development, known as HUD, runs several programs designed to help people find affordable housing. HUD does not build or own most of the housing itself. Instead, the agency provides funding to local housing authorities, nonprofit organizations, and private landlords who then manage the actual housing. Understanding this structure is important because it means you'll typically work with a local housing authority or management company rather than directly with HUD.

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HUD's main role is to distribute federal money and create rules that make housing more affordable for low- and moderate-income households. The agency has been doing this work since 1965, when Congress created it as part of efforts to address housing shortages and homelessness. Today, HUD programs serve approximately 4.8 million people across the United States.

The programs work by reducing the gap between what a household can afford to pay and the actual cost of housing. For example, if a family's income allows them to pay $800 per month for rent, but the market rent for an apartment in their area is $1,200, a HUD program might help cover the difference or provide subsidies that make the unit affordable.

Different programs serve different purposes. Some focus on providing rental assistance, while others help people buy homes or provide support for people experiencing homelessness. The amount of help available varies by location, program type, and local funding levels. Because HUD funding is limited and distributed across thousands of communities, the availability of each program differs significantly from city to city and state to state.

Practical Takeaway: HUD programs work through local agencies rather than directly. Research which local housing authority serves your area, as they manage the actual programs available to you.

Section 8 Housing Choice Voucher Program Explained

The Section 8 Housing Choice Voucher Program is HUD's largest rental assistance initiative. The program served approximately 2.3 million households in 2023. Under Section 8, participating families receive vouchers that can be used to rent homes from private landlords who agree to participate in the program. The voucher covers a portion of the rent, and the household pays the remaining amount from their own income.

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Here's how the voucher amount is calculated: HUD establishes a payment standard for each area, which is based on the Fair Market Rent for that region. This standard typically covers 90-110% of the area's average market rent. The household pays 30% of their adjusted monthly income toward rent. The voucher then covers the difference between what the household pays and the payment standard, up to the actual rent charged by the landlord.

For example, suppose a family's adjusted monthly income is $2,000. They would pay 30% of that, which is $600 per month toward rent. If the payment standard in their area is $1,200 per month and they find an apartment renting for $1,200, the voucher would cover $600 and the family would pay $600 out of pocket. However, if they find an apartment renting for $1,100, the voucher would cover $500 and the family would pay $600 out of pocket, but the landlord only receives $1,100 total.

The Section 8 program operates through local Public Housing Authorities (PHAs). Each PHA manages its own waiting list and has its own rules about preferences and priorities. Some PHAs give preference to families with children, veterans, people with disabilities, or those experiencing homelessness. Waiting lists in many areas are closed due to high demand, meaning new households cannot currently be added. In other areas, waiting lists are open but may have years-long delays.

Households must meet income limits to participate. Generally, gross annual household income cannot exceed 50% of the area's median income, though higher limits may apply in some cases. HUD requires that at least 75% of new vouchers go to households with extremely low incomes (30% of area median income or less).

Practical Takeaway: Contact your local Public Housing Authority to ask about Section 8 waiting lists, current wait times, and any preferences they offer. Many lists are closed, so understanding your local situation is essential.

Public Housing: Directly Managed Affordable Housing

Public housing refers to housing units that are owned and operated by local Public Housing Authorities. Unlike Section 8, where private landlords own the units, public housing is owned directly by the PHA. Approximately 950,000 households live in public housing across the United States. These units range from traditional apartment buildings to townhouses and single-family homes.

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In public housing, residents pay rent based on their income. Most commonly, residents pay 30% of their adjusted gross monthly income as rent. The PHA uses this income to maintain the buildings, pay utilities, and cover management costs. Because rent is income-based rather than fixed, a household's rent payment changes if their income increases or decreases.

Public housing was created through the Housing Act of 1937, initially to provide housing for working families with low incomes. Over time, the program expanded to serve elderly people, people with disabilities, and families experiencing housing instability. The quality and condition of public housing units varies widely. Some developments are well-maintained and serve their communities effectively, while others have faced serious maintenance and safety issues due to insufficient funding.

In recent years, HUD has promoted a transition away from traditional public housing toward mixed-income housing and other ownership models. Some PHAs have converted public housing to other affordable housing programs, and others have undergone substantial rehabilitation. The RAD (Rental Assistance Demonstration) program, started in 2012, allows PHAs to convert public housing units to project-based vouchers or long-term rental assistance contracts, which can bring in private investment and improve maintenance.

Income limits for public housing are similar to Section 8, generally starting at 50% of area median income, though extremely low-income households (30% of AMI) receive priority for at least 40% of admissions. Like Section 8, public housing has waiting lists, and many are closed in high-demand areas.

Tenants in public housing have significant protections. PHAs must provide due process before eviction, cannot discriminate in tenant selection, and must maintain properties to meet housing quality standards. Residents also have the right to organize tenant councils that provide input on PHA policies.

Practical Takeaway: Visit your local PHA office to learn about public housing availability. Ask about waiting list status, current development locations, and any recent renovations or conversions that may affect available units.

Project-Based Rental Assistance and Other HUD Programs

Beyond Section 8 and public housing, HUD operates several other programs that provide affordable housing. Project-Based Rental Assistance (PBRA) is similar to Section 8 vouchers but works differently in important ways. Instead of vouchers that households can use at any willing landlord, project-based assistance is attached to specific buildings. If you move out of a project-based unit, you lose the subsidy. Approximately 1.3 million households received project-based rental assistance in 2023.

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Project-based properties can be owned by nonprofit organizations, for-profit developers, or cooperatives. HUD contracts with these owners to provide reduced rents for low-income residents. Many of these properties serve specific populations, such as elderly residents, people with disabilities, or formerly homeless individuals. Some project-based properties also provide supportive services like job training, mental health counseling, or case management alongside housing.

The HOME Program (Home Investment Partnerships Program) provides grants to states and localities to create affordable homeownership and rental options. LOCAL jurisdictions use HOME funds for down payment assistance, rental development, and services for homeless populations. HOME has funded over 1.5 million housing units and homeownership opportunities since 1992.

HUD also administers the Community Development Block Grant (CDBG) program, which provides funding for community development activities including affordable housing. CDBG is flexible, allowing communities to determine their own priorities, though affordable housing and services for low-income people are common uses.

The HUD-VASH program (Veterans Affairs Supportive Housing) combines Section 8 vouchers with supportive services for veterans. The program has served over 180,000 veterans. Veterans receive a voucher paired with case management and supportive services to address barriers to housing stability.

The Continuum of Care program provides funding to help people experiencing homeless