Low-income housing generally involves a subsidy at some stage of its life. When helping renters searching for housing from private 24, the Department of Housing and Urban Development’s Section 8 program provides that the subsidy. Section 8 renters, in most cases, pay no more than 30 percent of their income for rent, using a subsidy to make the rest up. To be eligible for the program, however, households must earn less than the median income of their area.
Unbelievably Low Income
HUD sets income limits each year for its subsidized housing programs. These amounts differ by location and household size. HUD divides its income groups three ways, characterizing households as”extremely low-income,””very low-income” or even”low-income” Low-income homes are at or over 80 percent of the area’s median income. In the other end of the spectrum, most exceptionally low-income households earn 30 percent or less of the median of the area, qualifying them. Section 8 is impacted by location . As an exampleincome disparity exists. 30 percent of the median income for a family is $29,050. That number drops based on 2010 HUD income limits.
Very Low Income
The very threshold uses 50 percent of median income. If a household’s combined income is greater than 50% of the median of its area, it cannot acquire Section 8 assistance. In San Francisco, 2010 HUD data indicates that the $48,400 equals 50% of the median income for a household of the city. In Redding, that figure is $25,350. Simply put, three-person tenant households will need to earn $25,350 or not as in San Francisco, or $48,400 or not as in Redding, to qualify for Section 8 housing.
Housing authorities must provide 75 percent of the Section 8 vouchers the HUD housing choice vouchers website states. Some governments choose to use other preferences — some related to income, some not. By way of example, HUD notes that Section 8 tastes include expediting voucher availability for households which commit more than half of their income to housing, for homeless persons and for those who live in housing.