How does Section 8 work?
Families or individuals submit their applications through public housing agencies (PHAs), which can be done directly through the AffordableHousing.com application. If the PHA finds applicants eligible, they receive a Section 8 voucher. After acceptance, participants have a limited amount of time to find an affordable, suitable rental unit, which must be inspected and approved by the PHA. Tenants, owner and the PHA will enter into a contractual agreement in which the PHA pays the owner the subsidized amount of rent, with tenants contributing no more than 40% of their adjusted monthly income.
The PHA must determine the monthly rental rate is reasonable compared with similar unassisted units or the “fair market rent” (FMR) in the general market. Participants may choose a home with a higher rent than the FMR, in which case they would pay the owner the difference themselves. Or they may choose a lower-cost rental and keep the difference.
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