10 Things to Know About Section 8 Housing

Section 8 Housing is an important benefit to households that are near the federal poverty level.  There are income and asset limits based on the income for the entire household.  Typically, the applicant pays 30% of individual’s or family’s income as rent. 

1. Benefit.  Section 8 Housing is voucher program where the federal government pays the landlord directly.  The applicant pays 30% of his or her income as rent and utilities.  Typically, the program has a long waiting list.  Section 8 is operated by local public housing authorities (LHAs).  The LHAs manage the waiting lists.  Some vouchers can be used for mortgage payments for first-time homeowners.
2. Income Limit.  The income limit is 50% to 80% of median area income.  Fifty percent of vouchers are reserved for households earning approximately 50% of the local median income, and 75% of vouchers are reserved for those who are in 30% of the local median income.
3. Resource Limit.  There is a resource limit of $105,574, which began July 1, 2025.
4. Deeming.  Household income and assets are deemed from one member of the household to others.
5. Transfer of Asset Penalty.  There is a transfer of asset penalty.
6. Lookback Period.  There is a two-year lookback period.
7. Penalty Calculation.  Income imputed on transfer assets for two years.
8. Who Can Collect?  Household meeting financial limits.  Applicants may be denied for previous drug-related or criminal activity or debts owed to housing authorities. The Department of Community Affairs (DCA) has a list of preferences for admission.  These include:
   • Veterans or their surviving spouses.  Veterans must have been discharged or released from active duty under honorable conditions or a general discharge.  Surviving spouses are entitled to the same benefits until they remarry.
   • Homeless individuals.  Homeless is defined as individuals and families who are at the risk of experiencing homelessness or who were recently homeless.
   • Disabled individuals.  The disabled preference is defined as documentation from the Social Security Administration (SSA) that a member of the household is disabled and receiving SSI or SSDI and has a certification from a physician on a certification of disability form that a member of the household has disabilities.
   • Domestic violence victims.  The domestic preference is defined as currently living in a household unit in which a member of the household actually threatens violence.  It must be of a continuing nature and have occurred within the past 120 days, or the applicant has been displaced because of domestic violence.  The applicant is a victim of dating violence, sexual assault, stalking or human trafficking.
9. Who Determines Disability?  SSA or a physician certification to the local public housing authority determines disability.
10. Self-Settled Special Needs Trust (SSSNT).  An SSSNT may be required if a member of the household receives a personal injury recovery or an inheritance that pushes the family over the income and resource limits.