The four major rental assistance programs in the United States are Section 8 Housing Choice Vouchers, Public Housing, USDA Rural Development Rental Assistance, and the Low-Income Housing Tax Credit (LIHTC) program. Section 8 provides vouchers that tenants use in the private market, Public Housing offers government-owned units, USDA programs serve rural communities, and LIHTC creates affordable units through tax incentives to developers. Each program has different income limits, application processes, and availability. Use our free screening tool to check which programs you may qualify for based on your household size, income, and location.
What Are the Four Major Rental Assistance Programs?
The federal government funds four primary rental assistance programs, each designed to help low-income households afford safe and stable housing. Here is a quick overview of each:
Section 8 Housing Choice Voucher Program is administered by the U.S. Department of Housing and Urban Development (HUD) through local Public Housing Agencies (PHAs). Tenants receive a voucher and choose their own housing in the private rental market. The tenant pays roughly 30% of their adjusted gross income toward rent, and the voucher covers the rest up to a local payment standard.
Public Housing consists of federally funded housing developments owned and managed by local PHAs. Units range from single-family homes to high-rise apartments. Rent is typically set at 30% of the household's adjusted income.
USDA Rural Development Rental Assistance (Section 521) helps tenants in USDA-financed rural properties. The program subsidizes rent so tenants pay no more than 30% of their income. It is limited to properties in eligible rural areas.
Low-Income Housing Tax Credit (LIHTC) is a tax incentive program that encourages private developers to build and maintain affordable rental housing. Rents are capped at below-market rates, but tenants apply directly to the property rather than through a government agency.
Rental Assistance Programs Comparison Table
| Feature | Section 8 (HCV) | Public Housing | USDA Rural (Sec 521) | LIHTC |
|---|---|---|---|---|
| Administered By | Local PHAs (HUD-funded) | Local PHAs | USDA Rural Development | Private developers (IRS tax credits) |
| Housing Type | Private market rentals | Government-owned units | USDA-financed rural properties | Privately built affordable units |
| Income Limit | Up to 50% of Area Median Income (AMI); 75% of vouchers reserved for households at or below 30% AMI | Up to 80% AMI; priority for households below 50% AMI | Varies by county; generally up to 50% AMI | Up to 60% AMI (some units at 50% or 30% AMI) |
| Rent Calculation | 30% of adjusted income | 30% of adjusted income | 30% of adjusted income | Fixed below-market rent (not income-based) |
| Location Flexibility | Tenant chooses where to live (portability) | Must live in specific PHA property | Must live in eligible rural area | Must live in specific LIHTC property |
| Average Wait Time | 2 to 5+ years in most areas | 1 to 3+ years | Varies; shorter in some rural areas | Weeks to months (no government waitlist) |
| Funding Source | Federal (HUD) | Federal (HUD) | Federal (USDA) | Federal tax credits to developers |
| Number of Households Served | Approximately 2.3 million | Approximately 900,000 | Approximately 270,000 | Approximately 2.5 million units |
What Are the Income Limits for Each Program?
Income limits vary by program, household size, and geographic location. The table below shows approximate limits for a family of four at the national median level. Your local limits may be higher or lower.
| Program | Income Limit Basis | Approximate Limit (Family of 4, National Median) |
|---|---|---|
| Section 8 | 50% AMI (low-income); 30% AMI priority (extremely low-income) | Around $35,000 to $40,000 (varies widely by area) |
| Public Housing | 80% AMI (low-income) | Around $55,000 to $65,000 (varies by area) |
| USDA Rural | County-based income limits | Around $35,000 to $45,000 in most rural areas |
| LIHTC | 60% AMI (most units) | Around $42,000 to $50,000 (varies by area) |
Income limits are updated annually by HUD and USDA. Check your specific area limits using our eligibility screener for the most current numbers.
How Does Section 8 Work Compared to Public Housing?
Section 8 and Public Housing are both HUD programs, but they work very differently.
With Section 8, you receive a voucher after being selected from the waitlist. You then search for a rental unit in the private market that meets HUD quality standards and falls within the local payment standard. Your landlord must agree to participate in the program. You pay about 30% of your adjusted income, and the PHA pays the landlord the difference.
With Public Housing, you move into a specific government-owned property. You do not search for housing on the open market. Rent is also set at about 30% of your adjusted income, but you have less choice about where you live.
Key differences:
- Section 8 offers location flexibility; Public Housing does not
- Section 8 uses private landlords; Public Housing uses government-managed properties
- Section 8 waitlists tend to be longer (2 to 5+ years vs. 1 to 3+ years)
- Section 8 vouchers are portable between PHAs; Public Housing is tied to one location
Who Qualifies for USDA Rural Rental Assistance?
USDA Section 521 Rental Assistance is available to tenants living in properties financed through USDA Rural Development programs (Section 515 for families, Section 514/516 for farm laborers). To qualify:
- You must live in or plan to move to an eligible rural area (generally communities with populations under 35,000)
- Your household income must fall below the USDA income limit for your county
- You must be a U.S. citizen or eligible noncitizen
- You apply directly to the property manager, not to a government agency
The program is not available everywhere. It only operates in properties that have USDA financing and an active rental assistance contract.
How Does LIHTC Differ from Government Subsidized Housing?
LIHTC is fundamentally different from Section 8 and Public Housing because it is a tax credit program, not a direct subsidy to tenants. Here is how it works:
- The IRS allocates tax credits to state housing finance agencies
- States award credits to private developers who build or renovate affordable housing
- Developers sell the credits to investors to raise capital for construction
- In exchange, developers must keep a portion of units affordable for 15 to 30 years
- Rents are capped at a percentage of AMI, but they are not based on individual tenant income
What this means for tenants:
- You pay a fixed rent amount (below market rate) rather than 30% of your income
- If your income is very low, LIHTC rent may still be unaffordable without additional assistance
- There is no government waitlist; you apply directly to the property
- Many LIHTC properties also accept Section 8 vouchers, combining both benefits
- Credit checks and background screening are handled by the property management company
How to Apply for Rental Assistance Programs: Step by Step
Section 8 Housing Choice Voucher
- Find your local PHA at hud.gov
- Check if the waitlist is open (many PHAs only open their lists periodically)
- Submit a pre-application when the waitlist opens
- Wait for your name to be called (this can take years)
- Attend a briefing and receive your voucher
- Search for eligible housing within the allowed time frame (usually 60 to 120 days)
- Submit the unit for inspection and approval
- Sign the lease and begin receiving assistance
Public Housing
- Contact your local PHA
- Complete an application
- Provide documentation of income, assets, and household composition
- Wait for a unit to become available
- Accept or decline the offered unit
- Sign the lease and move in
USDA Rural Rental Assistance
- Search for USDA-financed properties at rd.usda.gov
- Contact the property manager directly
- Complete an application with income and household documentation
- The property manager verifies eligibility
- Move in when a unit is available
LIHTC Properties
- Search for LIHTC properties through your state housing finance agency or sites like affordablehousingonline.com
- Contact the property management company
- Submit a rental application (credit and background check may apply)
- Provide proof of income to verify you meet the income limit
- Sign a lease at the affordable rent rate
Not sure which programs fit your situation? Check your eligibility for multiple programs at once.
Can You Combine Multiple Rental Assistance Programs?
Yes, in some cases you can combine programs. The most common combination is using a Section 8 voucher at a LIHTC property. This can significantly reduce your out-of-pocket rent because:
- The LIHTC property already charges below-market rent
- The Section 8 voucher covers the difference between 30% of your income and the rent amount
- This combination can bring your rent payment very close to zero in some cases
Other possible combinations:
- Section 8 voucher used in a USDA-financed property (where allowed)
- State or local rental assistance layered on top of federal programs
- Utility assistance programs (like LIHEAP) used alongside any rental assistance
You generally cannot combine Section 8 and Public Housing, as both are HUD tenant-based or project-based assistance programs.
Frequently Asked Questions
Which rental assistance program has the shortest wait time?
LIHTC properties typically have the shortest wait times because they do not operate through a government waitlist. You apply directly to the property, and availability depends on unit turnover. USDA rural properties may also have shorter waits in less populated areas. Section 8 generally has the longest waitlists, often 2 to 5 years or more.
What happens if my income changes while receiving rental assistance?
For Section 8 and Public Housing, your rent is recalculated based on your new income at your next annual review or interim review. If your income increases, your rent portion goes up. If it decreases, your rent goes down. For LIHTC, your rent stays the same regardless of income changes (though you must still meet income limits at initial qualification and sometimes at recertification).
Can I transfer my Section 8 voucher to another city or state?
Yes, Section 8 vouchers are portable. You can request a transfer (called "porting") to another PHA's jurisdiction. The process typically takes 2 to 4 weeks. Public Housing, USDA, and LIHTC assistance are tied to specific properties and cannot be transferred.
Do rental assistance programs cover utilities?
Section 8 and Public Housing include a utility allowance in the rent calculation. If your utilities exceed the allowance, you pay the difference. Some LIHTC properties include utilities in the rent. USDA properties may or may not include utilities depending on the specific property. You may also qualify for LIHEAP to help with heating and cooling costs.
Can undocumented immigrants receive rental assistance?
Federal rental assistance programs (Section 8, Public Housing, USDA) require participants to be U.S. citizens or eligible noncitizens with qualifying immigration status. Mixed-status families (where some members are eligible and some are not) may receive prorated assistance. LIHTC properties set their own policies, but most follow similar requirements.
How long can I stay on rental assistance?
Section 8 and Public Housing have no time limits as long as you remain eligible and comply with program rules. USDA rental assistance continues as long as you live in the property and remain eligible. LIHTC affordability periods last 15 to 30 years for the property, but individual tenants can stay as long as they maintain eligibility.
Next Steps: Find Out What You Qualify For
Every household's situation is different. Your eligibility depends on your income, household size, location, and other factors. Instead of applying to programs one by one, use our free benefits screener to check your eligibility for multiple assistance programs at once, including housing, food assistance, healthcare, and more. The screening takes about 2 minutes and provides personalized results.
