What Is Section 8 Housing? Help Paying Rent (and Not Just in Low-Income Neighborhoods)

By Lisa Johnson Mandell

June 24, 2024

Officially called the Section 8 Housing Choice Voucher Program, this program run by the United States Department of Housing and Urban Development (HUD) gives financial assistance to people who are struggling to pay rent.

The Section 8 program is one of the largest—and oldest—government programs aimed at helping people find affordable housing (the "8" refers to Section 8 of the Housing Act of 1937). This provision was added in 1974 and authorizes HUD to issue vouchers to eligible renters that they can use to pay their rent.

According to the latest statistics, Section 8 assistance is provided by the Housing Authority to approximately 3.3 million low-income families, the elderly, and the disabled in the U.S.

Yet what it is and how it works both remain mysteries for many Americans. Contrary to what many think, Section 8 rentals can exist anywhere landlords choose to participate—not just in housing projects in sketchy neighborhoods. Many people are also unclear about who qualifies for Section 8 benefits.

So let's dive into the specifics!

What to know about Section 8 housing

To qualify for a Section 8 housing choice voucher, a household must make a gross (total) income below 50% of the median for their area. For example, data shows that the median annual income for a family living in Pittsburgh is $52,293. To be eligible for a Section 8 voucher, a family’s gross annual income would have to be less than half that, or $26,147. Priority is given to families who earn less than 30% of the median area income, which, in this case, would be $15,688 per year.

So what is Section 8 housing like for a family like this one? When they have a housing choice voucher, the federal government will subsidize privately owned rental housing for whatever exceeds 30% of the family’s gross annual income. That's because the Housing Authority defines rental payments equal to 30% of your income as fair and affordable.

So let's go back to the Pittsburgh family that earns $26,147 annually, which breaks down to $2,179 per month. Thirty percent of that monthly income amounts to $654. So when they have a voucher from HUD and find a housing unit that qualifies, the family would pay $654 per month in rent.

But what about the landlord who's receiving a relatively paltry rent check every month? He's not as bad off as you might think—as a participant of Section 8, he receives a check from HUD on subsidized housing that covers the difference up to market value.

Let's go back to our Pittsburgh example to see this in action. In this city, the fair market rent for two-bedroom housing is around $1,000 per month. So if a landlord had an apartment or single-family home worth that much with a Section 8 tenant paying $654 per month, the Housing Authority would issue a voucher to the landlord good for the rest, which in this case is $347 per month.

The problem with the housing choice voucher

Section 8 vouchers sound great for cash-strapped, low-income families, right? Well, here's some bad news: Due to long waiting lists, some estimates say that only 1 in 4 households eligible for rental assistance from these housing programs actually receives it.

“You could be on a waiting list to receive these benefits for years," says Alan Greenlee, executive director of the Southern California Association of Non Profit Housing. "And then you might have to wait even longer to find a landlord who is qualified and accepting Section 8 tenants.”

In most cities, landlords are not required by law to accept Section 8 housing vouchers and many landlords prefer not to take vouchers, because some neglectful families have given the program a bad rep. As a result, you could get a qualifying voucher from HUD, and find yourself on a long waiting list.

In areas with high housing vacancies, however, landlords seem more willing to qualify their properties for Section 8 tenants, since receiving market rate in rent—thanks to the Housing Authority subsidy—is better than receiving nothing if the apartment sits empty. Thus, you are more likely to find shorter waiting lists in areas that are less in demand.

To get more information or to see if you qualify for Section 8 housing assistance in your area, contact your local housing authority, as policies and amounts vary from state to state and city to city. For more general information, go to the HUD website.