Rental Subsidy Programs

• HUD has two rental subsidy programs that help to make rent more affordable for low-income families. The Public Housing Program provides a rental subsidy to families who live in subsidized units. The Section 8 Housing Choice Voucher Program provides a rental subsidy for tenants to choose any rental housing of their choice. To qualify for a subsidy, the family's income cannot exceed low-income limit levels. The family is responsible for paying 30 percent of their income toward the rent. HUD pays the remaining portion of the rent.
  
  

Homeownership Voucher Program

• The Section 8 Homeownership Voucher Program helps low-income families purchase a home. To participate in the program, you must be a current Section 8 voucher holder. Eligible home buyers can turn their rental subsidy payment into a mortgage subsidy. To qualify for a mortgage subsidy, the home buyer must have a steady source of income that does not include welfare benefits. The home buyer must be able to qualify for a loan with a lender to qualify for help. The home buyer is required to attend homeownership counseling to participate in the program.
  
  

Temporary Grant Programs

• The Homelessness Prevention and Rapid Re-Housing Program provides temporary housing grants to very low-income families. Up to 18 months of rental and utility assistance can be provided. The family's income cannot exceed 50 percent of the area median income. Moving expenses also are provided for those who need to secure housing. A grant can pay for a security deposit, moving van and storage fees. A motel voucher can be obtained for up to 30 days while the family transitions to permanent housing.
  
  

Neighborhood Stabilization Program

• The Neighborhood Stabilization Program provides grants to local governments and nonprofit organizations to purchase abandoned or foreclosed homes. The homes can be renovated and put back on the market at an affordable price. The homes also can be demolished and a new home built. These homes must be made available for purchase to qualified low-income families. The purpose of this program is to eliminate slum and blight in a community through homeownership.