Section 8 Housing

Definition

Section 8 Housing: A federally funded government program that provides rental assistance to low-income individuals and families, allowing them to afford safe and decent housing. This program was created by the 1974 amendments to Section 8 of the United States Housing Act of 1937 and is administered by the Department of Housing and Urban Development (HUD).

Examples

Example 1:
- A landlord decides to participate in the Section 8 housing program. A prospective tenant with a monthly income of $800 qualifies for the program due to their low income.
- The Fair Market Rent (FMR) for the unit is determined by HUD to be $200 per month.
- The tenant is required to pay 20% of their income, which is $160 per month.
- HUD provides a supplemental payment of $40 per month to the landlord to cover the full rent amount.
Example 2:
- Maria, a single mother earning a modest income, applies for Section 8 benefits.
- She finds an eligible apartment where the Fair Market Rent is set at $500 per month.
- Maria pays 30% of her income, amounting to $200, while the Section 8 program covers the remaining $300 in the form of a voucher given directly to the landlord.

Frequently Asked Questions

Q1: Who is eligible for Section 8 housing?

Applicants must meet specific income guidelines defined by HUD. Generally, households must have incomes that do not exceed 50% of the median income for the county or metropolitan area where they choose to live.

Q2: How do I apply for Section 8 housing?

Applications for the Section 8 program are accepted through local Public Housing Agencies (PHAs). Interested individuals must submit an application and provide required documentation.

Q3: What kind of housing can be rented with a Section 8 voucher?

Vouchers can be used for various types of housing, including apartments, houses, and townhomes, as long as the property meets HUD’s requirements for safe, sanitary, and affordable housing.

Q4: How is the amount of rent covered by Section 8 determined?

The amount of assistance depends on the family’s income, the local Fair Market Rent, and the payment standard set by the PHA.

Q5: Can Section 8 tenants be evicted?

Yes, tenants can be evicted for violating lease terms or housing program rules. Common reasons for eviction include non-payment of rent, damage to the property, or illegal activities.

Fair Market Rent (FMR): The estimated amount that a property would rent for on the open market as determined by HUD, which helps establish the subsidy amount.
Public Housing Agencies (PHAs): Local agencies that administer Section 8 and other housing assistance programs on behalf of HUD.
Voucher Payment Standard: The maximum amount HUD will pay towards a rental cost, while the tenant covers the remaining portion.
Income Limits: The thresholds set by HUD to determine eligibility based on family size and local median income.

Online Resources

References

U.S. Department of Housing and Urban Development. “Housing Choice Vouchers Fact Sheet.” HUD.gov
National Housing Law Project. “Housing Choice Vouchers.” National Housing Law Project

Suggested Books for Further Study

“How to Get Section 8 Housing: An Insider’s Guide to Collecting Housing Benefits” by Thomas Kramer
“The Affordable Housing Reader” edited by J. Rosie Tighe and Elizabeth J. Mueller
“HUD Scandals: Howling Headlines and Silent Fiascos” by Irving S. Shapiro

Real Estate Basics: Section 8 Housing Fundamentals Quiz

### Who administers the Section 8 Housing Choice Voucher program? - [ ] Local municipalities - [ ] Real estate agents - [ ] Private landlords - [x] The Department of Housing and Urban Development (HUD) > **Explanation:** The Section 8 Housing Choice Voucher program is administered by the Department of Housing and Urban Development (HUD) through local Public Housing Agencies (PHAs). ### What determines a tenant's portion of rent under Section 8? - [ ] Tenants pay a fixed amount regardless of income. - [ ] Tenants pay 50% of the Fair Market Rent. - [x] Tenants usually pay 30% of their monthly income towards rent. - [ ] Tenants cover the entire rent amount upfront. > **Explanation:** Tenants in the Section 8 program typically pay 30% of their monthly income towards their rent, with HUD covering the remainder through a voucher. ### What is required for a landlord to accept Section 8 vouchers? - [ ] They must obtain a special license. - [x] They must have their rental properties inspected and approved by HUD. - [ ] They must charge more than the Fair Market Rent. - [ ] They must exclusively rent to Section 8 tenants. > **Explanation:** To accept Section 8 vouchers, landlords must ensure their properties meet HUD’s qualifications, including passing an inspection to meet safety and sanitary conditions. ### What happens if a Section 8 tenant violates lease terms? - [ ] They receive a subsidy increase. - [ ] They get transferred to another MAP. - [x] They can be evicted like any other tenant. - [ ] They have lease violations forgiven. > **Explanation:** Section 8 tenants can be evicted for violating lease terms or failing to comply with program rules, similar to any other tenant. ### What does Fair Market Rent (FMR) establish? - [ ] The property tax rate - [x] The rental subsidy amount - [ ] The home insurance premium - [ ] The mortgage interest rate > **Explanation:** Fair Market Rent (FMR) is established by HUD to determine the amount of rental assistance provided through the voucher program. ### Can Section 8 vouchers be used for any rental housing? - [ ] No, only for specialized government housing. - [ ] Only for newly constructed units. - [x] Yes, for a variety of housing types that meet HUD’s standards. - [ ] Only in designated housing zones. > **Explanation:** Section 8 vouchers can be used for a variety of housing types, including apartments, houses, and townhomes, as long as the property meets HUD’s quality standards. ### Why might there be long waiting lists for Section 8 housing? - [ ] Limited funding and high demand for rental assistance programs. - [ ] The program requires extensive background checks. - [x] Both of the above are correct. - [ ] The Section 8 program is exclusive to certain states. > **Explanation:** Due to limited funding and high demand for rental assistance, many PHAs have long waiting lists or have to periodically close their waiting lists to catch up. ### Does Section 8 Housing provide assistance to landlords directly? - [ ] No, all payments are made to tenants to pass on to landlords. - [x] Yes, HUD pays landlords directly for the tenant’s housing. - [ ] No, Section 8 only assists tenant mortgage payments. - [ ] Yes, but only in form of loans. > **Explanation:** HUD provides direct payments to landlords to cover the tenant’s housing costs up to a certain amount specified by the voucher. ### What flexibility do tenants have with the Housing Choice Voucher? - [x] Tenants can choose their residence as long as it meets HUD's requirements. - [ ] Tenants must stay in the first unit they apply for. - [ ] Tenants can only move after five years. - [ ] Tenants are not allowed to choose their neighborhoods. > **Explanation:** The Housing Choice Voucher program offers flexibility, allowing tenants to choose their residences as long as the chosen housing meets HUD’s standards and is within the payment standard. ### What annually impacts the ongoing rental assistance for Section 8? - [ ] The tenant’s family size must decrease. - [x] Income re-evaluation of the tenant. - [ ] There must be a market decline in local property values. - [ ] Complete property renovations are necessary. > **Explanation:** The ongoing rental assistance is determined by annual or interim re-evaluations of the tenant’s income and family circumstances to ensure the subsidy amount remains fair based on their current income.