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 FAQS
  1. My mortgage payments are no longer affordable; is there anything that I can do to ...

    The most important thing for you to remember if you find that you may not be able to make this month's mortgage payment ... Read Full Answer >>
  2. How does the American Housing Rescue and Foreclosure Prevention Act of 2008 affect ...

    The passage of the American Housing Rescue and Foreclosure Prevention Act of 2008 at the end of July 2008 made about $15 ... Read Full Answer >>
  3. What do people mean when they say there is a "bubble" going on in the market, such ...

    A financial "bubble" refers to a situation where there is a relatively high level of trading activity on a particular asset ... Read Full Answer >>
Related Articles
  1. Home & Auto

    A Soaring Housing Market: College Apartments

    How to play the boom in upscale student housing.
  2. Budgeting

    Take Advantage Of A Housing Crisis - Rent!

    When a housing crisis strikes, the big winners are often the renters.
  3. 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.
  4. 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?
  5. 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?
  6. Credit & Loans

    Can You Get A Mortgage On A Mobile Home?

    You can get a loan for a mobile home, but it may not be a mortgage. These are the choices for funding manufactured housing.
  7. Credit & Loans

    Top US Housing Market Indicators

    A quick overview of the top economic indicators to track the housing market in the US.
  8. Home & Auto

    Save $30,000 For A Home Down Payment In 5 Months

    Before tackling mortgage rates, home maintenance costs and utilities, every home buyer must first gather the funds for a mortgage loan down payment.
  9. Credit & Loans

    Getting A Mortgage When Building Your Own Home

    It's much harder to get a loan when you're building a home, not moving into one. Here's where to look and what to expect.
  10. Credit & Loans

    Is Now the Right Time to Buy a House?

    Thinking of buying a home? Consider these factors first.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center