Housing Choice Voucher Program

AAA

DEFINITION of 'Housing Choice Voucher Program'

The Housing Choice Voucher Program helps families with very low incomes rent or buy safe housing. Local Public Housing Agencies (PHAs) issue housing choice vouchers to qualified families who may choose to use their vouchers for dwellings including single-family houses, townhomes or apartments. They are not limited to subsidized housing projects.

INVESTOPEDIA EXPLAINS 'Housing Choice Voucher Program'

Once a family chooses a home, the landlord must agree to participate in the housing voucher program. The landlord receives a housing subsidy directly from the local PHA, which receives funding from the federal Department of Housing and Urban Development (HUD). The tenants pay the difference to the landlord.

Families qualify for the vouchers based on income and family size compared to the median family income for the region. This information is available from the local PHA office. Usually an eligible family's income cannot exceed 50% of the region's median family income.  

Eligible applicants must be U.S. citizens or fall within certain categories of non-citizens who hold eligible immigrant status. Applicants must share details of family income, assets and family composition. Eligible applicants are placed on a waiting list and contacted by their local PHA when their names are reached. Long waiting times are not unusual.

Local PHAs may create additional selection criteria to move families up a waiting list. Homelessness, substandard housing conditions or paying more than 50% of household income for rent are common reasons a family may be given preference.

PHAs calculate housing-payment standards to reflect the average rent of a moderately priced home. Once families select a home, they will pay 30% of their adjusted monthly income toward the rent. If the rent is higher than the housing-payment standard amount, they must pay the difference.

 

 

 

RELATED TERMS
  1. Home Affordable Refinance Program ...

    A mortgage refinancing program offered by the Federal Housing ...
  2. Federal Housing Administration ...

    A United States government agency that provides mortgage insurance ...
  3. Making Home Affordable

    This program was designed to aid approximately seven to nine ...
  4. Home Affordable Modification Program ...

    A loan modification program introduced in 2009 to promote stability ...
  5. Commercial Real Estate Loan

    definition of a commercial real estate loan
  6. Realtor Property Resource (RPR)

    A National Association of Realtors member benefit providing realtors ...
Related Articles
  1. Take Advantage Of A Housing Crisis - ...
    Budgeting

    Take Advantage Of A Housing Crisis - ...

  2. 5 Places With Good Jobs And Cheap Housing
    Home & Auto

    5 Places With Good Jobs And Cheap Housing

  3. Where's The Next Housing Bubble?
    Home & Auto

    Where's The Next Housing Bubble?

  4. 5 Factors To Watch In A Housing Recovery
    Home & Auto

    5 Factors To Watch In A Housing Recovery

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center