5 Ways Section 8 Housing Is Failing Americans

Section 8 housing is a vital program. It is a beacon of hope for many low-income individuals and families across the United States. However, many areas for improvement have compromised the effectiveness of this essential program. In this article, we’ll explore the challenges of the current Section 8 program and propose solutions to overcome them. 

1. Low-Income Eligibility Standards

The most glaring issue with Section 8 is its income eligibility threshold, which can be prohibitively low for many struggling individuals and families. The program sets the limit at 50% of the area's median income. However, these figures differ from state to state and can be more stringent in some. Even states with exorbitant living costs, like California, can have eye-popping low-income limits. This leaves those just above this threshold without access to much-needed assistance. 

According to the US Census, the median household income in the United States is around $74,000. However, Section 8 factors in the local median income, which varies wildly from that figure. Operating on the median income for the whole country, to qualify for Section 8 assistance, a family of four would need income below $37,000. 

This figure is not only low but short-sighted. It fails to account for the varying costs of living across different regions. In cities with high housing costs, like San Francisco or New York City, even a modest income can be woefully insufficient to afford housing without assistance. 

It fails to consider other essential expenses, such as:

• Healthcare
• Transportation
• Utilities
• Childcare
• Food
• Clothing

These can rapidly deplete a family's budget, forcing them to choose between paying for necessities or maintaining their housing. This deepens a difficult-to-break cycle of poverty.

For example, the chart below shows Los Angeles’ Section 8 income eligibility requirements:

The chart also shows the limited increases made as the family size increases. Furthermore, being classified as low-income/80% of the median is not enough to qualify. According to the Housing Authority of the City of Los Angeles (HACLA), “Congress requires that 75% of new admissions to the tenant-based program and 40% of new admissions to the project-based programs be Extremely Low Income. The remaining new admissions may not exceed the Very Low-Income limit.”

2. Overly Long Wait Times

Another critical issue with Section 8 is the lengthy waiting lists that plague the program. In many areas, individuals can wait up to two years or more to receive assistance, leaving them in precarious living situations. Needing Section 8 signifies the individual or family is in distress that could require immediate attention. This wait time could be likened to 911 putting you on hold for five business days. 

Rampant homelessness is a stark indicator of the ineffectiveness of current subsidized housing programs. According to USA Facts, over half a million people experience homelessness on any given night in the United States. This includes individuals living on the streets, in shelters, or in temporary housing arrangements, highlighting an urgent need for reform in Section 8 and beyond. 

If not for the wait times of Section 8, some of the 653,000 experiencing homelessness in the United States might have wound up as Section 8 tenants.

3. The Stripping of Benefits When Recipients Earn Slightly More

Another side effect related to stringent income limits detracts from the program's quality. To maintain much-needed assistance, recipients must actively maintain their low income levels. This discourages them from working or earning more or moving toward self-sufficiency because they would be robbed of their benefits in that critical interim.

One Section 8 recipient shared their experience online, explaining, “Section 8 is an income trap. If you go to work, you are treated as though you are no longer disabled and no longer need assistance. But $900 per month* is tough to live on, especially when you add the cost of new, higher rent and the out-of-pocket costs to transport you to your new job.” They explain how they haven’t purchased clothing in almost ten years because it rises to luxury status in their current budgetary conditions.

4. Substandard Living Conditions

Insufficient oversight can lead to substandard housing conditions for voucher holders. While the program sets standards for housing quality, enforcement can be hard, leading to some landlords providing inadequate or unsafe housing.

This can mean:

• Health and Safety Concerns: Some landlords may rent out properties that do not meet basic health and safety standards, such as having mold, pests, or inadequate heating.
• Lack of Repairs: Landlords may delay or avoid making necessary repairs, leading to issues like leaky roofs, plumbing problems, or malfunctioning heating systems.
• Code Violations: Some properties rented to Section 8 tenants may have existing code violations, such as improper electrical wiring or structural issues.
• Habitability Issues: In extreme cases, voucher holders may live in uninhabitable conditions, such as homes without running water or proper sanitation facilities.

Broad Policy Changes that Section 8 Needs to Make

• Increase Funding: This is obvious but somehow difficult. The government should increase funding for Section 8 and other housing assistance programs to reduce waiting lists and expand eligibility criteria. 

• Regional Adjustments: This is equally obvious and should already be in place. Adjust income thresholds and voucher amounts based on regional cost of living to ensure that assistance is sufficient to meet housing needs.

• Streamline Processes: Streamline the application and voucher distribution processes to reduce waiting times and improve access to assistance.

• Expand Support Services: Provide additional support services, such as job training and childcare assistance, to help individuals and families achieve financial stability.

• Public-Private Partnerships: Foster partnerships between government agencies and private organizations to increase the availability of affordable housing options.

The current definition of "need" within the Section 8 program is too narrow and fails to account for the complex circumstances that many low-income individuals face. A more inclusive approach that considers a broader range of factors, like regional cost of living, family size, and other essential expenses, is needed to ensure that the program effectively serves those in need.

About ExactEstate:

ExactEstate is a leading, single-stack property management software provider that helps property managers and landlords streamline and enhance their operations and increase efficiency. Our cloud-based platform offers features such as a resident portal, online applications, online payments, tenant screening, detailed and custom reporting, and a full accounting suite. We support our affordable housing, multi-family, and single-family rental clients with US-based customer service.