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. Affordable Market Value (AMV)

    The sale price of a multi-family residential housing unit sold ...
  6. Commercial Real Estate Loan

    definition of a commercial real estate loan
Related Articles
  1. Budgeting

    Take Advantage Of A Housing Crisis - Rent!

    When a housing crisis strikes, the big winners are often the renters.
  2. Home & Auto

    5 Places With Good Jobs And Cheap Housing

    Having a great job without affordable housing (or vice versa) can be a real headache. These cities offer both.
  3. Home & Auto

    Where's The Next Housing Bubble?

    Countries outside of the U.S. are showing definite signs of housing bubbles - but which will be the first to pop?
  4. Home & Auto

    5 Factors To Watch In A Housing Recovery

    What are the economic signs that will point the way to a better housing market?
  5. Home & Auto

    A Soaring Housing Market: College Apartments

    How to play the boom in upscale student housing.
  6. Insurance

    My mortgage payments are no longer affordable; is there anything that I can do to prevent foreclosure?

    The most important thing for you to remember if you find that you may not be able to make this month's mortgage payment is to act immediately. You do not want several months to pass without making ...
  7. Investing

    How does the American Housing Rescue and Foreclosure Prevention Act of 2008 affect first-time home buyers?

    The passage of the American Housing Rescue and Foreclosure Prevention Act of 2008 at the end of July 2008 made about $15 billion of tax incentives available to Americans impacted by the mortgage ...
  8. Investing

    What do people mean when they say there is a "bubble" going on in the market, such as a "housing bubble" ...

    A financial "bubble" refers to a situation where there is a relatively high level of trading activity on a particular asset class at price levels that are significantly higher than their intrinsic ...
  9. Credit & Loans

    What is the debt ratio for an FHA loan?

    Borrowing through the Federal Housing Administration requires individuals to provide proof of income as well as information relating to total outstanding debt.
  10. Home & Auto

    What factors should I consider when shopping for the best mortgage lender?

    Comparing lenders to obtain the best mortgage loan requires research and willingness to shop around for the best loan to fit individual needs.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center