Social Housing in the United States
Cat Song is a second-year law student from Fordham University School of Law in New York, NY. She is currently working at Housing Rights Service as a legal research intern studying comparative housing law in the different UK jurisdictions.
In her final article for Housing Rights Service, Cat explains how social housing works in the US.
The US has a housing program that helps tenants who may not be able to afford their rent due to low income or disability. The program is called “Section 8” (referring to the federal statute that created it, Section 8 of the Housing Act of 1937), and is run by a federal agency called the US Department of Housing and Urban Development (HUD). Under this system, both HUD and the tenant pay a share of the rent.
Benefits to landlords
HUD pays its portion of the rent directly to the landlord. Section 8 housing can be in a dedicated complex but more often individual landlords will accept Section 8 tenants. There are some benefits to landlords of signing up to this program.
- Landlords will receive a guaranteed sum from HUD to cover some or all of the rental payment each month.
- As the tenant’s contribution is income based there is a reduced risk of rent arrears
Repairs and fitness standards under Section 8
All Section 8 housing must meet a minimum quality standard set by HUD. HUD sends inspectors to properties on a regular basis to ensure that the homes meet their standards of cleanliness, safety and repair. If those standards aren’t met, HUD sends a letter to the landlord, setting out:
- the required repairs
- a time frame for completing these, which is usually about two weeks.
Rent payments to the landlord are withheld until the problem is fixed. At the end of the prescribed time, inspectors arrive to ensure that repairs have been completed and to authorize release of rent to the landlord. Tenants who willfully damage property may be removed from the Section 8 program.
How much rent does the landlord receive under Section 8?
The landlord must charge Section 8 tenants a reasonable rent. This rent is determined by HUD which refers to it as “Fair Market Rent” (FMR). FMR is calculated by averaging the rent of comparable, medium-quality properties in the area. HUD pays the landlord the FMR minus the tenant’s portion of the rent.
Tenants can choose to rent a larger or more expensive apartment. However, HUD will only pay the standard amount of FMR minus the tenant's contribution. If this does not cover the contractual rent on the property, the tenant will be responsible for any shortfall.
How much money does the Section 8 tenant contribute
A tenant will usually pay 30% of their income after deductions. Some of the deductions which are allowed include
- a deduction for any dependants in the household
- childcare expenses for a child who is aged under 13 if the arrangement means that the adult can work
- a deduction if the head of the household is elderly or has a disability
- deductions for certain disability or medical expenses.
A tenant who makes $1000 per month lives in a one-bedroom apartment in Boston. There are no deductions so the tenant is expected to contribute 30% of his monthly salary, or $300 towards the rent. The FMR for this type of accommodation in Boston is $1,156 so HUD will pay FMR minus the tenant’s contribution, which works out at $856.
Tenants must send proof of their income to HUD every year.
Qualifying for Section 8 housing
Eligibility for this program is based on income. A prospective tenant can apply to the program and will then be placed on a waiting list if their income does not exceed the limit.
There are currently 123,533 applicants on the waiting list, and the wait for certification can take anywhere from several months to several years.
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