What renters should know before applying for Section 8 assistance

Key takeaways

• Section 8 housing vouchers help qualifying renters cover a portion of their monthly rent, with tenants typically paying about 30% of their adjusted income.
• Demand for vouchers is extremely high, and most areas use long waitlists or lotteries because only a small fraction of eligible applicants receive assistance.
• Voucher holders must meet strict income, background and compliance requirements, and landlords must pass safety inspections before tenants can move in.

Millions of Americans rely on Section 8 housing vouchers to make rent manageable, but understanding how the program works can be confusing.
If you cannot afford to rent in your area on your income, then you might be eligible for the Housing Choice Voucher Program, more commonly known as Section 8.

The United States Department of Housing and Urban Development, or HUD, has a program that can subsidize rent for people making below a certain level of income for their locality. While this is a federal program, it's run by 2,000 local public housing agencies.

When people refer to Section 8, they are referring to a housing voucher. The program is designed to help families in the "extreme-low income" range by covering part of their rent.

With a Section 8 voucher the tenant is still paying some rent, but the voucher pays for the rest.

"Renters pay roughly 30% of their adjusted monthly income based on the numbers for that ZIP code," said Andrew Fortune, a real estate broker with Great Colorado Homes in Colorado Springs, Colorado. "The housing authority cuts a check for the remaining rent balance owed to the owner."

It's very important for the renters to pay their portion of the rent on time or risk losing their voucher.

"Tenants must remember they are fully responsible for their specific portion of the rent. Missed personal payments will get you permanently removed from the Section 8 program."

It's often very competitive to secure a Section 8 voucher. Where you live makes a difference.

"Congress only funds enough vouchers for a tiny fraction of the millions of people waiting," Fortune said. "A city might open its list for three days every five years. You just apply and pray that your lucky number gets drawn eventually."

Since they are distributed on a local level, how they are distributed it is up to the local government.

"Big cities use random lotteries because the demand is completely overwhelming," Fortune said.

When applying for Section 8, you will need to provide personal information about you and your family and your income. One person in the household will need to be a U.S. citizen.

"Clean background checks also play a major role, which many people don't know when they get started," Fortune said.

To figure out if you qualify, you need to look for your area's median income for a household of your size. Those making 30% less than the median income for their region and household size qualify.

"Many people think a low salary automatically guarantees a voucher, but qualification depends entirely on your specific county," Fortune said.

The income for a household of one or two people is less than what is needed for a household of three or four people.

To look up your area median income, search for online tools like Freddie Mac's eligibility tool. Local legal aid societies and charities often assist in connecting people with security deposit assistance and help with paperwork.

"Tenants can also use state housing counseling agencies for dedicated assistance with paperwork," Fortune said. "People don't have to fight the complicated legal system alone."

• Gather documentation for all household members.
• Confirm that at least one member is a U.S. citizen.
• Know your area’s median income for your household size.
• Verify that your income is below 30% of the local median.
• Ensure you have a clean background check.
• Use online tools to check income eligibility.

Section 8 is a housing choice program which means there is not a specific building that the renter has to live in. They get to choose an apartment that, with the help of the voucher, they can afford.

Apartments that have Section 8 tenants must pass strict health and safety inspections.

"Owners must fix these small, annoying issues before the tenant can officially move in," Fortune said. "The strict bureaucracy is exactly what scares most private landlords away."

The voucher will expire if it is not used within a set time frame, typically 60 days. Extensions can be granted through the housing authority.

"The biggest hurdle is paying the expensive security deposit," Fortune said. "Vouchers only cover monthly rent payments for the approved unit. Tenants must find upfront cash, which is hard for people who are approved for Section 8."

Once a lease is signed. the tenant is afforded protections under the law, as long as they keep paying their rent on time.

"Voucher holders actually have much stronger federal shields against unexpected evictions," Fortune said. "Landlords must prove specific lease violations to evict a program tenant."

• Search for units that are in your budget with the voucher.
• Confirm with the landlord that you are using vouchers to rent.
• Make sure the unit can pass health and safety inspections.
• Use the voucher within the required timeframe (often 60 days).
• Prepare savings for a security deposit (not covered by vouchers).
• Keep paying your portion of rent on time to maintain protections.

There are a lot of misconceptions around Section 8.

One is that many holders have no steady income. In fact, Section 8 voucher holders are held to a strict standard and must be employed.

"The reality is that many voucher holders work full-time jobs and simply don't earn enough money to survive market rent rates in their specific city," Fortune said. "Another huge myth is that these rentals destroy neighborhood property values, but studies actually show the program has zero negative effect on local housing markets."

"Renters must constantly fight this stubborn, unfair stigma," he added.

The government inspections and bureaucracy of Section 8 often make landlords wary of renting to people with vouchers.

"Some landlords mistakenly assume they will never receive rent checks on time, which is completely not true," Fortune said. "The government payments actually hit their bank accounts like clockwork on the first of the month. It's incredibly tough to find owners who understand the facts."

A landlord cannot solely reject a tenant because they will be using a voucher. Landlords can reject tenants for other reasons like poor credit or bad references. The best thing for Section 8 voucher holders to do is keep their paperwork organized and accessible.

"They should save messages where landlords explicitly refuse the housing voucher," Fortune said. "Tenants can take that proof straight to the local fair housing advocates for immediate help."