HUD section 8

The Section 8 Project-Based Assistance provides rental assistance for very low (below 50% of area median income) and extremely low (below 30% of area median income) income households. Project-based subsidies are tied to a specific unit for the length of the term of a Housing Assistance Payment (HAP) contract. Under a HAP contract, HUD provides a rental subsidy to the owner of the project equal to the difference between the HUD approved rent for an assisted unit and the HUD required contribution from the eligible tenant, generally no more than 30% of their income. Section 8 vouchers, on the other hand, increase affordable housing choices for very low-income families. Individuals and families with tenant-based vouchers are able to select any privately owned housing unit that participates in the program.

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