The cost of living continues to rise, especially the rent and housing prices. Therefore, individuals and families struggle to make ends meet. However, there’s a government assistance program that covers a portion of rent for those who qualify. The housing choice voucher program was created to help individuals who generate low income, have children, or are elderly. The program allows those who qualify to rent from a private landlord. Instead of living in a housing development such as Section 8 “project” housing. It’s vital to note that the housing choice voucher program goes beyond just helping renters. It also allows for landlords to experience lower vacancy rates. This article explains how housing choice voucher programs function, along with the benefits of the HCV program.

What is the Housing Choice Voucher Program?

The housing choice voucher program, also known as “Section 8,” is a federally funded program in place to help those with low income, inability to work, or those with children struggling to make ends meet. The process and operations of the HCV program are overseen by local housing authorities. To qualify for this form of assistance, there are income limits and a waiting list, which in large cities can take multiple years to approve an individual. The process of how the housing choice voucher works is simple; tenants must pay roughly 30% of their income towards the monthly rent. Furthermore, the voucher covers the rest of the payment. In addition to the rent stipulations, private properties involved in Section 8 housing must undergo yearly inspections. Also must consist of no safety hazards, like lead paint.

How Does Housing Choice Vouchers Work?

There’s a series of steps to take from applying for the housing voucher to approval. Then, the ongoing process of living in the house. Let’s dive into the steps on how the housing choice voucher program works:

1. Locate your local public housing authority. Go to their website and check the current waitlist to obtain housing. Next, determine your temporary housing options until a spot opens up within the Section 8 program.
2. Gather necessary documents to apply for the housing choice voucher program. Documents obtained for every individual who plans to reside within the property. Furthermore, necessary documents include names, DOBs, social security numbers, proof of assets, and income verification, like pay stubs or W2 forms.
3. Once all the paperwork’s gathered. Apply for the housing program online, in person, or by mail with your local “Public Housing Authority.”

What to do once approved for Section 8 Housing

• Once approved for the housing voucher, it’ll be time to see the potential options. Next, the housing authority will provide a list of acceptable neighborhoods along with the amount of the rent stipend. Additionally, as mentioned above, the main stipulation is that the individual paying 30% of their monthly income towards the monthly rent amount.
• After viewing the approved areas, it’ll be time to set up property showings with potential landlords. Therefore, once the desired properties are selected, it’ll be time to apply for the rental property. When applying for Section 8 housing, provide the landlord with your voucher and “Request for Tenancy Approval” form. Furthermore, the landlord submits the documents to the public housing agency, which inspects the unit for potential fire safety hazards and ensures the home is up to local code. Lastly, once all these steps are completed, it’ll be time to sign the lease.

Real Estate Impacts of Housing Choice Voucher Program

When setting rental rates, the public housing authority establishes a maximum rental allowance based on the neighborhood and the number of bedrooms. Overall, when the housing choice program sets the rental rate, landlords who don’t participate in the program must adjust their requested rental amount. The more landlords participate in the program, the less supply of housing options for renters. Furthermore, experienced investors take advantage of the Section 8 program, considering its guaranteed occupancy, rental income, and protection from tenants damaging the property. Therefore, even though there are stipulations such as yearly inspections, housing choice voucher programs provide benefits for both tenants and landlords alike.

Legal Considerations for Housing Choice Vouchers

• Tenants utilizing the housing choice voucher are protected against discrimination. Furthermore, some states prohibit rejecting tenants based on their use of the voucher or overall income.
• Landlords need to ensure tenant safety. Therefore, during the yearly inspection, the public housing authority conducts a lead-based test to ensure there’s no lead paint within the home. Along with proper fire safety, such as working fire alarms, methods to exit the home, and, at times, fire sprinkler systems. In addition, for landlords to participate in Section 8 housing, they must actively have a rental license and be up-to-date on property taxes.

Benefits of Housing Choice Voucher Programs

Advantages for tenants:

• Wide variety of housing choices for tenants. Overall, housing stability provides renters the opportunity to stay in the same place for multiple years.
• Since the public housing authority oversees operations, there’s less chance of having a slumlord or residing in an unsafe structure.
• Reduces the burden of paying your monthly rent and allows low-income individuals the same opportunities as the middle and upper classes.
• Allowing individuals to move to more suburban areas with better schools and lower crime.

Advantages for Landlords:

• Guaranteed monthly rental income. Housing choice voucher programs (HCV) provide landlords with a check or direct deposit for the rent.
• Ability to find qualified tenants. When tenants are searching for a rental, the housing authority provides the landlord’s information, which makes it easier to locate a tenant.
• Lower vacancy rates. Opportunity to keep the same tenant for multiple years.
• Minimize risk for the tenant destroying the property. Considering that all operations and inspections are overseen by the public housing authority. Therefore, tenants are obligated to take care of the home in order to continue receiving the housing voucher. If any damages are done to the home, the housing authority will make necessary repairs.

Are Housing Choice Voucher Programs Worth It?

The Housing Choice Voucher Program, also known as Section 8 Housing, benefits both tenants and landlords. Therefore, the program allows low-income families to afford their rent by providing rental assistance. Furthermore, the public housing authority works with private landlords to allow Section 8 tenants more housing options. Furthermore, the landlord benefits from having a stable monthly income, lower vacancies, and, most of the time, higher rental rates compared to renting to a private/independent tenant.

However, the only downside to housing choice voucher programs is the extensive waitlist, which can take years to be approved. Low-income seniors or those with children prioritized on the waitlist. Regardless, it’s recommended to have temporary housing set up until the tenant receives approval from the public housing authority. Furthermore, it’s suggested to review the rules and regulations of “housing choice voucher programs” to understand your rights and chances of receiving the assistance. Lastly, if you have any further questions as a tenant applying for Section 8 housing or an investor looking to participate in housing choice voucher programs, then give us a call at 267-420-2296.