What Is a Section 8 Rental?
The U.S. Department of Housing and Urban Development administers the Section 8 program to help low-income families and individuals find adequate housing. The program, which was launched in 1974, aims to help low-income renters find housing that isn't substandard or unsafe, while still affordable. Housing rented using Section 8 funding is commonly referred to as a Section 8 rental, although the private owners, not the government, own and rent the building.
Section 8 Vouchers
HUD doesn't directly administer rentals to Section 8 recipients, nor does it provide them housing. Instead, it provides recipients with vouchers, a couponlike system that proves to landlords that the department will pay for a portion of the voucher holder's rent each month. Landlords must contact HUD to notify them that they're willing to rent to Section 8 recipients, and landlords aren't required to accept Section 8 vouchers at all properties. Even if a landlord agrees to rent to Section 8 recipients, the recipients must pass normal screening processes.
Public Housing Agencies
While HUD provides the funding and the oversight for the Section 8 program, it doesn't administer the system. Instead, it relies on local housing commissions, known as public housing authorities, to administer the program, including screening processes and approval of qualifying units. Renters who think they may qualify for the Section 8 should consult their local public housing authority directly. The Department of Housing and Urban Development maintains a database of local housing authorities renters should contact to receive information about the program.
Renter Eligibility
Public housing authorities are free, to a degree, to craft their own eligibility requirements. Nationwide, most recipient households must earn less than 50 percent of the median income for the area in which they live, although most recipients' earnings are significantly below the median income. HUD requires public housing authorities to provide at least 75 percent of their Section 8 funds to households that earn less than 30 percent of their area's median income for a household of their size.
Unit Eligibility
Landlords who wish to rent to tenants who receive Section 8 vouchers should contact their public housing authority to be placed on a list of Section 8-friendly renters, and should indicate that they accept vouchers in advertisements for the unit. Landlords must only charge fair market value as annually determined by HUD for their property, and the home or apartment must meet basic habitability standards that public housing commissions establish.
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