Housing Assistance
Affordable Housing & Homelessness Prevention
Quick Facts
Estimated 2025 Budget
~$58 Billion
Households Assisted
5+ Million
Housing Vouchers
2.3 Million
Section 8 families
Public Housing Units
950,000
2025 Budget Challenges
Federal housing assistance faces significant proposed funding cuts in 2025:
- Potential 43% reduction from current funding levels
- Estimated budget around $58 billion (down from over $100 billion in recent years)
- Could impact over 5 million households currently receiving assistance
- Proposed cuts to Section 8 vouchers, public housing, and homelessness programs
- High-cost regions like the Bay Area could see over 40% reduction in funding
How Housing Assistance is Funded
Federal housing assistance is funded through HUD discretionary appropriations:
- Discretionary spending: Congress appropriates funding annually through HUD budget
- No dedicated tax: Funding comes from general federal tax revenue
- Tenant contributions: Recipients typically pay 30% of income toward rent, subsidies cover the rest
- Competitive and formula grants: Mix of competitive grants and formula allocations to states/cities
Note: Unlike entitlement programs (Medicaid, SNAP), housing assistance is not guaranteed to all who qualify. Long waiting lists are common, sometimes stretching years for vouchers and public housing.
What Federal Housing Assistance Provides
Section 8 Housing Choice Vouchers
Rental assistance vouchers for 2.3 million low-income families, elderly, and disabled individuals. Recipients find their own housing in the private market and pay 30% of income toward rent. The voucher covers the difference up to a payment standard. Allows families to choose where to live, including higher-opportunity neighborhoods.
Public Housing
Approximately 950,000 units of government-owned rental housing for low-income families, elderly, and persons with disabilities. Local public housing authorities (PHAs) own and operate developments. Tenants pay about 30% of income as rent. Many public housing buildings are aging and need major repairs, with a maintenance backlog estimated at $70+ billion.
Project-Based Rental Assistance
Subsidies tied to specific affordable housing properties. Private landlords receive assistance to offer below-market rents to eligible tenants. Includes Section 8 project-based vouchers and older programs. Unlike Housing Choice Vouchers, assistance stays with the unit - if tenant moves, they lose the subsidy.
Homelessness Prevention & Emergency Shelter
Continuum of Care program funds emergency shelters, transitional housing, permanent supportive housing, and rapid re-housing. Helps over 650,000 homeless individuals and families annually. Also includes Emergency Solutions Grants for street outreach, shelter operations, and homelessness prevention. Veterans homelessness programs through HUD-VASH vouchers.
Community Development Block Grants (CDBG)
Flexible grants to states and cities for community development including affordable housing, anti-poverty programs, and infrastructure. Communities decide how to use funds based on local needs. Often leveraged with other funding to build affordable housing, revitalize neighborhoods, and support economic development.
HOME Investment Partnerships
Grants to states and localities to build, buy, and rehabilitate affordable housing. Largest federal block grant dedicated solely to affordable housing. Supports rental housing, homeownership assistance, and direct rental assistance. Requires local match and targets very low-income households (under 50% area median income).
Who Receives Housing Assistance
Extremely Low-Income Families
75% of voucher recipients have incomes below 30% of area median income
Elderly & Disabled
Over 50% of assisted households include elderly or disabled members
Working Families
About 40% of non-elderly, non-disabled households have at least one working member
Veterans
HUD-VASH program provides vouchers and supportive services to homeless veterans
Eligibility & Access
Eligibility requirements and program access:
- Income limits: Generally must be below 80% of area median income, with priority to those below 30%
- Citizenship/immigration: Must be U.S. citizen or eligible immigrant
- Local administration: Programs administered by local public housing authorities - rules vary by location
- Long waiting lists: Average wait for voucher is 2+ years in many cities, sometimes longer
- Closed waiting lists: Many housing authorities have closed waiting lists due to overwhelming demand
- Preferences: PHAs may give preference to homeless, those paying over 50% of income for rent, or living in substandard housing
Impact & Challenges
Positive Impacts
- Reduces homelessness and housing instability
- Allows low-income families to afford rent while meeting other basic needs
- Children in assisted housing perform better in school and have better health outcomes
- Housing vouchers help families move to lower-poverty, higher-opportunity neighborhoods
Current Challenges
- Only 1 in 4 eligible households receives assistance due to limited funding
- Aging public housing needs $70+ billion in repairs and modernization
- Rising rents outpace voucher payment standards in many markets
- Landlords refusing to accept vouchers limits housing options
- Proposed 2025 budget cuts could force hundreds of thousands to lose assistance