Project-Based Section 8 Rental Assistance: The Good And Bad

Here’s a quick look at what that program offers, plus its advantages and disadvantages.

A Section 8 housing voucher acts like a coupon toward your rent. With it, a large portion of your rent gets paid by the government, and you only have to pay 30 percent of your income to cover the rest. What’s the downside to vouchers? There is a long wait time that can reach 10 years in certain areas with high demand.

This is why if you’re seeking affordable housing, you should also look into HUD apartments, aka subsidized housing or project-based Section 8. With this option, you still get cheap rent, but you may not have to wait several years as with a voucher.

Is project-based Section 8 a perfect program? No, as it has its good and bad, which we will discuss now.

Project-Based Section 8: The Good

• As mentioned, wait times are often quicker than with vouchers. A voucher could take five to ten years to secure due to limited supply and high demand, while some have had success finding affordable housing via project-based Section 8 within six months.
• The process of securing project-based Section 8 housing is more straightforward. Instead of going through a Public Housing Agency, you can apply directly to affordable buildings where you’d like to live and participate in the program.
• Some areas have plenty of project-based Section 8 buildings. If you live in a huge city, don’t be surprised if there are 20-50 such buildings in your area that you can apply to.
• Finding HUD apartments or subsidized housing is as simple as searching Google or using the HUD Resource Locator.
• If you secure a HUD apartment, the savings will be similar to a voucher since you will only have to pay 30 percent of your income on rent each month. And if you do not make an income, your rent could be free.
• You don’t have to worry about application fees with project-based Section 8. With vouchers, you do.
• Utilities may be included with some HUD apartments, which helps you stack savings even more.

Project-Based Section 8: The Bad

• Although project-based Section 8 does not refer to the “projects” and is generally a method for finding a clean and safe place to live, it may take a bit of work to find a nicer apartment to settle into.
• To find the place that fits your needs, you may have to look at and apply to several subsidized housing buildings, which takes time and effort.
• Despite having no application fees, project-based Section 8 does involve security deposits, so you may need some cash saved up before moving in.
• Project-based Section 8 benefits are tied to the property. If you decide to move to a new location, you will lose the cheap rent attached to your old unit. In other words, you will have to start the process over again if you hope to continue paying cheap rent via subsidized housing.