Housing Benefits From the Section 8 Housing Program

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Abstract
The Section 8 housing program is the largest U. S. housing assistance program. This article presents the first systematic analysis of the benefits participating households receive and compares those benefits with federal government costs. Section 8 New Construction projects provide acceptable housing at an affordable price to those low-income households fortunate enough to be accepted by the developers. However, about 20% of the total project rents goes to program-related costs rather than to tenant benefits. A major advantage of the Section 8 Existing Housingprogram is that tenant benefits are provided without excessive rent increases. But, most units in that program do not meet Section 8 Acceptability Criteria. A shift in emphasis from the New Construction to the Existing Housing program can save the government significant amounts of money yet maintain the number of households assisted.