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 >>
  4. Can unearned rent be considered deferred revenue?

    Unearned rent can be considered deferred revenue from the perspective of a landlord or rental company, if that landlord or ... Read Full Answer >>
  5. What role did junk bonds play in the financial crisis of 2007-08?

    Junk bonds were the at heart of the financial crisis of 2007-2008. Toxic assets related to the subprime housing market pushed ... Read Full Answer >>
  6. Why does the loan-to-value ratio matter?

    For mortgage lenders and borrowers, the loan-to-value ratio is an important factor in determining the repayment terms of ... 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

    Is It Worth Buying A Second Home To Rent?

    Mortgage interest rates are low, but consider these dos and don'ts before making the leap into rental property ownership.
  7. Home & Auto

    Add Extra Appeal, and Market Value, To Your Yard

    Spring landscaping projects are worthwhile because, in addition to bringing more appeal to your yard, they'll increase the resale value of your home.
  8. 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.
  9. Credit & Loans

    Top US Housing Market Indicators

    A quick overview of the top economic indicators to track the housing market in the US.
  10. 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.

You May Also Like

Hot Definitions
  1. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  2. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  3. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  4. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  5. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
  6. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
Trading Center