Paying too much for almost anything can lead to hard times. This is especially the case with the current economic situation. The need for assistance is becoming more crucial every day, particularly for those with low incomes. One of the most overwhelming expenses people have to deal with is housing costs. The rent rates are generally going crazy. Affordable housing is not the same for everyone. It depends on a person’s financial situation. However, it’s critical to find affordable housing if you want to keep your budget balanced.
Affordable Housing Through the Housing Choice Voucher Program
How much do you pay every month for rent? Is it over 30% of your monthly income? If it is, you are cost-burdened, which means you need housing assistance. We didn’t make that up; in fact, this is what the United States Department of Housing and Urban Development (HUD) says. It defines affordable housing as spending no more than 30% of a family’s gross income on housing costs.
Looking for affordable housing is not that hard. The government has plenty of housing programs that aim to help people in need find decent housing at affordable prices. One remarkable program is the Housing Choice Voucher (HCV) program, or, as many people refer to it, Section 8. In this article, you will learn:
- How Can the Housing Choice Voucher Program Help People?
- The Program’s Impact on Housing Costs and Participants’ Situations
- What are the Eligibility Requirements for This Program?
How Can the Housing Choice Voucher Program Help People?
Americans have been getting housing support from this program since 1974. Some people might think that this program allows only government housing since it’s a federal program. However, Section 8 allows participants to choose rentals in the private market, but not all units can qualify for this opportunity. In fact, a rental must pass a HUD inspection to be eligible. This inspection aims to confirm that the rental meets the housing quality standards (HQS), which include 13 basic requirements. This guarantees that the unit is secure, sanitary, and appropriate enough for residency.
Participants can get assistance from this program through housing vouchers. These vouchers are the payment method beneficiaries can use to cover a portion of rent. It’s important to keep in mind that there is a rent rate standard that units shouldn’t typically exceed. When using the voucher, a tenant will not have to pay more than 30% of their income for rent if the rent rate meets that standard. However, if a family chooses a rental with a rental rate above that standard, they shouldn’t be paying more than 40% of their adjusted monthly income. Otherwise, the unit will not qualify for Section 8. This is only if the landlord accepts these housing vouchers.
The Program’s Impact on Housing Costs and Participants’ Situations
Since the Housing Choice Voucher program has the objective of lowering housing costs, that should have a positive impact on the financial situation of beneficiaries. People can save money when they receive benefits from this program. This money can help them cover other essentials like food and medical care. In fact, it has been proven that families who spend more of their income on rent have less money left for other necessities, which may lead to critical health issues.
Another great benefit of this program is the fact that it helps reduce homelessness. According to studies, Section 8 vouchers can help prevent low-income people from experiencing homelessness and other financial difficulties. This is because it helps them afford proper housing.
What are the Eligibility Requirements for This Program?
Section 8 is a federal program that operates on the state level through local public housing agencies (PHAs). As a result, each state may have its own eligibility requirements. However, there are a few general criteria that applicants must meet to qualify for this program. Depending on the specifics of each requirement, there may be some exceptions. These criteria include the following four factors:
- Citizenship Status
- Gross Income of the Household
- Family Size and Conditions
- Evictions Record
Due to the high demand for this program and the limited funding available, there has to be a waitlist sometimes. So, even if your application is accepted, you will most likely have to wait to start receiving benefits. You need to ensure that your circumstances meet the standards to be able to get a voucher.
Citizenship Status
Some people might mistakenly think that this opportunity is only available to Americans. Actually, foreigners who have valid citizenship can also qualify if they meet the other criteria. Applicants must confirm their citizenship status. Those with valid citizenship can receive benefits. To do that, applicants and their family members must sign certification forms at the time of application.
Keep in mind that not all family members necessarily need a qualifying citizenship status for the household to be eligible. Instead, the family can still qualify for the program even if it has only one member with valid citizenship. However, the benefits a family can receive will depend on the number of eligible members only. In addition to the certification forms, your local PHA may ask for more paperwork.
Gross Income of the Household
Since the HCV program is meant to help people with low incomes, applicants can’t make more than a certain amount of money per year. Since it differs by state, you will need to reach out to your local PHA to find out more about the specific income limit in your state. Generally speaking, the typical income level at which a family qualifies is half or less than the area’s median income (AMI). You should keep in mind that a minimum of 75% of those receiving benefits must be making less than 30% of the AMI in their area. To determine your income level, you will have to provide some documents. The type of these documents may be different from one state to another.
Family Size and Conditions
When it comes to Section 8 eligibility, your family’s status matters. If there has been a change in the number of people in your family, you must report it to your local PHA as soon as possible. This is because that change may affect your eligibility status or the benefits you are eligible for. HUD has a definition of a family, but it also allows each local PHA to establish its own definition. So, that’s another thing your PHA can help you with.
Eviction Record
Some people might be disqualified under specific conditions even if they meet the other basic requirements. Some reasons for disqualification may include methamphetamine production in a public housing facility, illegal drug use, or any other type of criminal activity reported in their eviction records. For this reason, the local PHAs need to learn about a recipient’s previous renting practices to ensure they will be reliable tenants.
Bottom Line
If you are struggling with housing costs, you may benefit from the support options available. In general, you shouldn’t be spending more than 30% of your monthly income on rent. This way, you will be able to pay less for housing and more for other basic needs. One popular housing assistance option is the federal Housing Choice Voucher program, or Section 8. This program can cover a big portion of your rent payments and it allows you to choose a rental in the private market. However, you should remember that the rental you choose will need to pass an inspection and meet the housing quality standards (HQS). Your eligibility for this program will basically depend on a few factors that include:
- Citizenship Status
- Gross Income of the Household
- Family Size and Conditions
- Evictions Record
If you need help with the application process, you can reach out to your local PHA. They can provide you with information and guidance. You can also learn more about this program by checking out the HUD online resources.