In New York City and other parts of the United States facing rising rents and housing prices, over two million low-income households rely on federal rental assistance through the Housing Choice Voucher Program, formerly known as Section 8. Despite its significance, the program faces challenges such as long waiting lists and difficulties in finding landlords willing to accept vouchers.
Katherine O’Regan, an affordable-housing expert at NYU’s Furman Center, coauthored a report discussing the program’s impact. She warns that potential funding cuts and stricter eligibility requirements being considered by Congress could have widespread effects on poor households and communities.
The program began in 1974 to address issues with previous affordable housing approaches. It allows low-income families to choose from private market rentals that meet certain standards, covering rent costs beyond 30% of their income. However, funding for new vouchers has decreased since 1995 due to budget constraints.
The demand for vouchers is high, with applicants typically waiting about two years. In 2022, only 57% of recipients successfully used their vouchers to lease homes—a decline attributed to administrative burdens for landlords, discrimination against voucher holders, and competitive rental markets.
Vouchers primarily assist children, seniors, and disabled individuals. Research indicates they effectively improve housing security by reducing rent burdens and homelessness risks. However, voucher recipients often reside in high-poverty neighborhoods due to program features like uniform payment standards across cities.
O’Regan highlights that changes such as varying payment standards by ZIP Code have shown promise in enabling more families to move to lower-poverty areas. Yet broader issues like racial and income segregation persist.
In fiscal year 2024, the program served approximately 5.2 million people at a cost exceeding $32 billion. Studies suggest it helps avoid costs related to homelessness and improves long-term outcomes for children raised in assisted households.
O’Regan suggests improvements such as simplifying administration and exploring alternative rental assistance forms. Despite challenges, she remains hopeful about the program’s future due to its strong foundational model leveraging private market strengths while maintaining government oversight.
