What is the Difference Between Public Housing and Section 8?

By: ROS Team

Ever wonder if you should wait for a designated apartment or have the freedom to choose your own place? Section 8 and Public Housing offer paths to affordable living, but with key differences. This blog dives into the difference between Public Housing and Section 8, explaining which program best suits your needs and lifestyle.

What is Section 8?

Section 8, formally known as the Housing Choice Voucher Program, is a US government program that helps low-income families, seniors, and people with disabilities afford decent housing in the private market.

The primary aspect of the Section 8 program revolves around its voucher system. These vouchers can be either “project-based,” designated for specific apartment complexes, or “tenant-based,” giving the tenant the freedom to choose a unit in the private sector within areas covered by a participating public housing agency (PHA).

Under this voucher system, individuals or families with a voucher locate and lease a unit, either in a specified complex or in the private sector. They then contribute a portion of the rent, usually around 30% of their adjusted income.

Adjusted income is calculated by subtracting deductions for dependents under 18 years old, full-time students, disabled individuals, elderly households, and specific disability assistance and medical expenses from the household’s gross income.

How Do You Qualify for Section 8 Housing?

To be eligible for Section 8 housing assistance, several key factors are taken into consideration:

Income: Your total yearly gross income cannot surpass 50% of the median income for the area where you wish to reside. The local Public Housing Authorities (PHAs) determine the specific income limits applicable to their jurisdiction.
Family Status: You must meet the Department of Housing and Urban Development’s (HUD) definition of a family, which includes households with at least one elderly member (over 62 years old), a person with a disability, or multiple individuals with or without children.
Immigration Status: You must be a U.S. citizen or a non-citizen with eligible immigration status as defined by the program guidelines.
Background Checks: You’ll need to provide financial information (income and assets) and personal details like your Social Security number for verification purposes.
PHA Approval: You’ll undergo a screening process conducted by the PHA, which may include a criminal background check to assess your eligibility.

What is Public Housing?

In the United States, public housing plays a vital role in providing affordable shelter for low-income individuals, families, and those facing financial challenges. This program is overseen by the Department of Housing and Urban Development (HUD) and offers rental units at reduced rates, managed directly by local Public Housing Agencies (PHAs).

Imagine a neighborhood comprising apartment complexes, townhomes, or even single-family dwellings. If these properties are owned and maintained by the local PHA and offer rent significantly lower than the average market value, that defines public housing.

How Do You Qualify for Public Housing?

To qualify for public housing, applicants must meet specific criteria set by the U.S. Department of Housing and Urban Development (HUD):

Income Limits: Your annual household income must not exceed the limits established by HUD, which vary based on the geographic location and the number of individuals in your family. HUD defines two income levels: lower income (80% of the area’s median income) and very low income (50% of the median income).
Family Status or Disability: You must be classified as a family according to HUD’s definition, be elderly (age 62 or older), or have a disability that qualifies you for assistance.
Immigration Status: You must be a United States citizen or hold a legal immigration status recognized by the government.
Background Checks: As part of the application process, you will be required to provide references, which may be subject to verification.
PHA Approval: Your application will undergo review by the local PHA, which may include additional background checks to determine your eligibility.

Public Housing vs Section 8: Similarities

Public Housing and Section 8 are two distinct programs, but they share some key similarities:

Shared Funding and Oversight: Both programs receive funding and oversight from the Department of Housing and Urban Development (HUD). HUD establishes guidelines and allocations for these programs.

Similar Safety and Quality Standards: Regardless of whether you live in public housing or utilize a Section 8 voucher, you can expect a similar level of safety and habitability standards. Local Public Housing Agencies (PHAs) conduct inspections to ensure units meet these baseline requirements.

Shared Goal: The ultimate goal of both programs is to provide safe and affordable housing for low-income families, seniors, and individuals with disabilities.

Local Management by PHAs: Daily, local PHAs oversee the management of both programs. These agencies determine eligibility, manage waiting lists for public housing, and administer Section 8 vouchers.

Difference Between Public Housing and Section 8

Public Housing and Section 8 are government initiatives that provide affordable housing options for low-income families and individuals in the United States. While both programs share the same goal, their approaches differ in terms of property ownership and management, as well as the process for securing housing.

1. Ownership and Management:

In the Public Housing program, the government, through local Public Housing Agencies (PHAs), owns and manages the properties. Residents live in buildings or units specifically designated as public housing.

Conversely, the Section 8 program involves private landlords owning the rental units. The local PHAs administer the program and distribute housing vouchers to eligible participants.

2. Finding Housing:

To obtain public housing, applicants must apply to their local PHA and be placed on a waiting list for a specific development unit. This process offers limited choices in terms of location and housing types.

With the Section 8 program, voucher holders have the freedom to search for and secure qualifying apartments on the private rental market. This approach allows greater flexibility in choosing the desired location and type of unit.

Public Housing vs Section 8: Summary of Key Differences

Feature	Public Housing	Section 8
Ownership	Government (local PHA)	Private landlords
Management	Local Public Housing Agency (PHA)	Local PHA administers, landlords manage
Finding Housing	Waiting list for specific developments	Find qualifying units on private market
Choice of Location/Unit	Limited	More choice and flexibility
Rent Payment	Typically 30% of adjusted income	Typically 30% of adjusted income

Is Public Housing the Same as Section 8?

Public housing and Section 8 aim for affordable housing but differ in their setup. Public housing places you in government-owned units, while Section 8 gives you a voucher to find your own apartment in the private market.