HUD Rental Subsidies
HUD rent subsidy programs provide financial assistance to low-income tenants of multifamily housing projects through payments that reduce the rent they pay. Under the programs, eligible tenants are only required to pay a portion of the market or HUD approved rent, and HUD pays the difference on behalf of the tenants to the project owners. Not all units within a HUD project need to be rent subsidized; depending on a tenant’s income level, some units may be leased at a market rate.
The largest rent subsidy program is authorized under Section 8 of the U.S. Housing Act of 1937. The “Section 8 Program” includes eight principal subprograms targeted toward different types of housing projects and tenants with different income levels. Other rent subsidy programs are (1) rent supplements, (2) rental assistance payments, and(3) project rental assistance under Section 202 and Section 811 capital advance programs. Rental subsidy often accompanies insured, direct loan, or capital advance programs.
