Both Section 8 and Section 42 housing programs were developed to help ensure that Americans have access to safe and affordable housing. These programs provide financial benefits to participating landlords while offering lower housing costs to participating renters. There are strict income limits for these programs, as they’re designed to support those who cannot otherwise find affordable housing for their families.
The application process can be long, so you should get started as soon as possible. Here’s what you need to know before you apply to either Section 8 or Section 42 housing.
Section 8 vs. Section 42
Section 8 and Section 42 are both types of income-based housing. Low-income renters who qualify will pay less for these apartments than they would with higher earnings. Eligibility for both programs is based on the family’s income. Though the guidelines are similar, the application process is very different.
What does Section 8 mean?
The United States Department of Housing and Urban Development (HUD) manages Section 8 housing. Participating apartment communities provide discounted rent to program participants. The government then makes up the difference between what the renter can pay and what the unit is worth. Thus, the property management company receives the same amount that they would if they were renting to individuals who could pay full price.
Section 8 housing is subsidized, which means that a portion of the rent is paid for by a government benefit to ease the expense for the individual.
What does Section 42 mean?
Apartments that qualify as Section 42 housing receive Housing Tax Credits from the government when the apartment complex is first constructed or purchased. This helps to offset the initial costs for the property management company. However, these tax credit apartments do not supply the property management company with ongoing financial support.
In return for the tax credit, Section 42 housing complexes must designate a portion of their units for renters who make less than 60% of the area median income. The program sets a maximum allowable rent for these families.
How do I qualify for Section 8 housing?
To qualify for Section 8 housing, you must submit an application to your local HUD or public housing office and provide details on your income, assets, and family size. Full-time students are typically ineligible to live in Section 8 housing alone unless they meet specific requirements.
Section 8 housing applicants cannot earn more than 50% of the area’s median income. HUD publishes income guidelines per county that specify these amounts. Your local housing authority will review this information and determine whether you qualify for housing.
If your Section 8 housing application is approved, you are placed on a waiting list for available housing. When you are selected from the waiting list, you will receive a tenant-based voucher. You can then submit this voucher for subsidized rent to any participating Section 8 housing community.
How do I qualify for Section 42 housing?
The participating housing community is responsible for reviewing applicants for its Section 42 housing. Eligibility is based on family size and income. You must complete a detailed income and asset questionnaire and student status questionnaire. A household that is comprised entirely of full-time students is ineligible. Section 42 housing is not intended for dormitories or student housing.
The community may designate housing for individuals who earn less than 60%, 50%, 40%, and 30% of the area’s median income. A family who earns less than 30% of the area’s median income would be eligible for a unit with any of these designations, but renters who make 60% of the area’s median income would only qualify for units with the 60% designation.
Renting Section 8 Housing
Section 8 housing is notoriously difficult to secure. By law, participating communities must provide 75% of their Section 8 housing to families who earn less than 30% of the area’s median income. Preference is also given to families who are:
- Involuntarily displaced
- Homeless or living in substandard housing
- Paying more than 50% of their income toward rent
Waiting lists for families who have been accepted into the Section 8 housing program often last for years. Some areas use a random lottery to select renters from the waiting list. A public housing agency (PHA) may close its waiting list entirely if it’s too long to serve everyone in a reasonable amount of time.
It is typically easier to acquire Section 42 housing than Section 8 housing. You may find waiting lists at individual apartment complexes, but there is not an area-wide waiting list.
If you’re in Section 8 housing, you will put 30% of your income toward rent. If your income changes during your time in the program, you may submit an “Interim Recertification” requesting a rent adjustment. Participants also undergo annual recertification to verify their income and the amount of their rent.
Renting Section 42 Housing
Monthly rent for Section 42 housing is capped based on the local median income. However, the amount charged to the renter is not based upon their individual income. The cost for section 42 housing cannot be changed in the middle of a lease, even if the renter’s income changes.
If you’re interested in either Section 8 or Section 42 housing, you should contact your local housing authority, as they’re the best source for more detailed information on how these programs work in your area and what the specific income limits are for your family.
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