Section 8 is a federal rent subsidy paid directly to your landlord
Section 8 is a program run by the U.S. Department of Housing and Urban Development (HUD) that pays part of your rent to your landlord on your behalf. You find your own apartment, sign a lease with a private landlord, and HUD sends the landlord a check each month for your portion. You pay the rest — usually 30 percent of your income — and the landlord receives the difference from the program.
The name comes from Section 8 of the Housing Act of 1974, the federal law that created it. The program does not own housing or run apartment buildings. Instead, it gives money to tenants so they can afford market-rate apartments in their community. Your landlord is a private person or company, not a government agency.
The program is also called the Housing Choice Voucher Program because you get to choose where you live, as long as the landlord agrees to participate and the apartment meets HUD's standards.
Key Takeaways
- Section 8 pays your landlord a portion of your rent each month; you pay the rest, usually 30 percent of your income.
- You find and choose your own apartment from the private rental market, and the landlord must agree to accept Section 8.
- The program is administered by local housing authorities in each city or county, not by a single federal office.
- Most housing authorities have waiting lists that are years long, and some are closed to new applicants.
- Your income must fall below a limit set by HUD, which varies by family size and location.
How the money flows each month
You and your landlord both sign a lease. The lease price is set by you and the landlord, but HUD will only pay up to a certain amount called the payment standard for your area. If the rent is higher than the payment standard, you pay the difference out of pocket.
Each month, HUD sends the landlord a check for their portion. You send the landlord a check or pay online for your portion. The landlord cashes both. If you stop paying your share, the landlord can evict you — Section 8 does not protect you from eviction for non-payment of your portion.
The amount you pay is recalculated once a year based on your income. If your income goes up, your share goes up. If your income drops, your share drops. HUD always pays the difference between what you pay and the full rent, up to the payment standard.
Who runs Section 8 in your area
Section 8 is administered by local housing authorities — a separate government agency in each city or county. There is no single national office you call. Your local housing authority receives federal money from HUD and decides how to distribute it, who gets on the waiting list, and how long the list is.
This means the program works differently depending on where you live. One city might have a waiting list that is open and moves quickly. Another city's list might be closed and have a five-year wait. Some housing authorities prioritize people experiencing homelessness or people with disabilities. Others use a lottery system. You have to contact your local housing authority to learn the rules where you live.
You can find your local housing authority by searching "housing authority" plus your city name, or by calling 211 and asking for the Section 8 program in your area.
Income limits and how they are set
HUD sets income limits for each area based on the median income in that region. The limit is usually 50 percent of the area median income, though some housing authorities use 60 percent. A family of four in a rural area might have a limit of $35,000 per year, while a family of four in a major city might have a limit of $55,000 or higher.
Income includes wages, self-employment income, Social Security, unemployment benefits, child support, and other regular money coming in. Some income is excluded — for example, income of children under 18, and some disability benefits. Your housing authority will tell you exactly what counts.
You must be under the income limit when you first receive the voucher. After that, you can stay in the program even if your income rises above the limit, though your monthly payment will increase.
What "payment standard" means and why it matters
The payment standard is the maximum amount HUD will pay toward your rent in your area. It is set by your local housing authority and is usually based on the fair market rent for a one-bedroom, two-bedroom, or three-bedroom apartment in your region.
If you find an apartment that rents for $1,200 and the payment standard for a two-bedroom is $1,100, HUD pays $1,100 and you pay $100 plus your regular share (usually 30 percent of your income). If the apartment rents for $900, HUD pays $900 minus your share, and you pay your share only.
Payment standards vary widely by location. A two-bedroom in a rural area might have a payment standard of $700, while a two-bedroom in a major city might be $1,500 or more. Your housing authority publishes its payment standards publicly, so you can see them before you start looking for an apartment.
The waiting list and how long it takes
Most housing authorities have a waiting list because demand for Section 8 far exceeds the number of vouchers available. Some lists are open to new applicants; others are closed. When a list is closed, you cannot apply until it reopens, which might be months or years away.
Wait times vary dramatically. Some housing authorities process applications in a few months. Others have waiting lists of three, five, or even ten years. A few housing authorities have no waiting list at all because they have enough vouchers for everyone who wants one — this is rare.
When you are called from the waiting list, you receive a voucher and have a set amount of time (usually 60 to 120 days) to find an apartment and have the landlord sign up. If you do not find an apartment in that time, you lose the voucher and go back on the waiting list.
What happens after you get a voucher
Once you receive a voucher, you search for an apartment on the private rental market. The landlord must agree to participate in Section 8 — not all landlords do. Some landlords avoid the program because of paperwork, inspections, or other reasons. You may have to contact many landlords before you find one willing to accept Section 8.
Before HUD will pay, the apartment must pass an inspection. An inspector from the housing authority visits and checks that the unit meets basic standards: the roof does not leak, the heat works, the plumbing works, there are no safety hazards. Most apartments pass, but if yours does not, the landlord must make repairs before you can move in.
Once the lease is signed and the inspection passes, HUD begins paying the landlord. You stay in the program as long as you pay your share on time, follow the lease, and your income stays below the program limit (or you are allowed to stay above it, depending on your housing authority's rules).
Frequently Asked Questions
Can I use Section 8 to move to a different state?
Yes, but you must first receive a voucher from your current housing authority, then request a transfer to the housing authority in the state where you want to move. The receiving housing authority must have vouchers available and must approve the transfer. This process can take several months, and there is no may provide the new housing authority will accept you.
What if my landlord wants to raise the rent?
The landlord can raise the rent, but HUD will only pay up to the payment standard. If the new rent exceeds the payment standard, you pay the difference. If the raise is very large, you may decide to move to a cheaper apartment instead. You can break your lease and search for a new place without losing your voucher, as long as you find one within your time limit.
Does Section 8 cover utilities like electricity and water?
No. Section 8 pays only the rent to the landlord. You pay for utilities separately. Some housing authorities subtract an estimated utility cost from the payment standard, which lowers what HUD pays and lowers your share, but you still pay the actual utility bills yourself.
What if I lose my job and my income drops to zero?
Your payment is recalculated based on your new income. If your income is zero, you may pay very little or nothing. However, you must report the income change to your housing authority. If you do not report it and they find out later, you could lose your voucher. Contact your housing authority immediately if your income changes.
Can I own a home with Section 8?
Most Section 8 vouchers can only be used to rent. However, some housing authorities offer a homeownership program that lets you use your voucher toward a mortgage payment on a home you own. This is rare and has strict rules. Ask your housing authority whether this option exists in your area.