{"id":139537,"date":"2021-08-12T11:30:00","date_gmt":"2021-08-12T17:30:00","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=139537"},"modified":"2023-03-27T02:38:22","modified_gmt":"2023-03-27T08:38:22","slug":"section-8-expansion","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/section-8-expansion","title":{"rendered":"Is Section 8 About to See its Biggest Expansion Ever?"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC5800409773&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p>Section 8 is a maelstrom rotating ominously at the intersection of economics and politics. Let\u2019s just bring up the elephant in the room: Section 8 is one of the most divisive topics in the real estate industry. <\/p>\n\n\n\n<p>Some people despise Section 8 on philosophical or political grounds. Some people love Section 8 and believe it fills a desperate need in this country. Others are simply agnostic\u2014they take it for what it is and plan accordingly.&nbsp;<\/p>\n\n\n\n<p>Despite the hurdles preventing an objective conversation about Section 8, it\u2019s worth an attempt because we may be on the precipice of the largest expansion ever to the Housing Choice Voucher\u2014or <a href=\"https:\/\/www.hud.gov\/topics\/housing_choice_voucher_program_section_8\" class=\"rank-math-link\" target=\"_blank\" rel=\"noopener\">Section 8<\/a>\u2014program. And if President Biden\u2019s campaign proposals and recently proposed legislation actually make it to the political finish line, there could be entirely new federal programs to help tenants pay rent and buyers purchase their first home.&nbsp;<\/p>\n\n\n\n<p>These things will take years to play out if they occur\u2026 and they could just as easily evaporate into thin air. It\u2019s a messy issue, as most issues get when dealing with money and politics.&nbsp;<\/p>\n\n\n\n<p>But few could argue that we don&#8217;t have a housing problem in this country. Specifically, we have a shortage of available, affordable housing units for low-income families. Our shortage has led to so many of the Section 8 biases that real estate investors and property owners carry around with them: run-down buildings concentrated in areas that deflate property values and poorly managed local housing authorities\u2014all of which create a negative feedback loom, making systemic progress seem untenable.&nbsp;<\/p>\n\n\n\n<p>So let\u2019s hold our noses together and head into the maelstrom. The ramifications are important.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\u2019s happening now<\/h2>\n\n\n\n<p>Section 8 is managed at the local level by thousands of state and regional housing authorities, but all the money flows from the top\u2014the federal government\u2019s Department of Housing and Urban Development (HUD).&nbsp;<\/p>\n\n\n\n<p>As of 2020, about <a href=\"https:\/\/www.cbpp.org\/housing-choice-voucher-fact-sheets\" target=\"_blank\" rel=\"noopener\">2.2 million households<\/a> are part of Section 8 and receive vouchers for rent assistance. Just under 70% of these vouchers go to the elderly, the disabled, and families with young children. And only about 20% of families who qualify for vouchers can actually get them. The Biden Administration wants to essentially \u201cfully fund\u201d Section 8, meaning that every household who qualifies can get a voucher.&nbsp;<\/p>\n\n\n\n<p>HUD administered just over $25 billion of its roughly $55 billion total budget to housing vouchers in 2020. The Biden administration is attempting to add about $5 billion to the budget for the current fiscal year, which will help about 200,000 more families join the voucher program. But getting a big, transformative increase through Congress will cost a lot of money\u2014roughly $400 billion over 10 years, according to some early Congressional Budget Office (CBO) estimates.&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n  <div id=\"posts_lists-block_6113fde8b2a05\" class=\"  my-10\">\n    <div class=\"\">\n      <!-- Column One -->\n      <div>\n                  <h2 class=\"mt-0 mb-1 js-toc-ignore\">\n            News &amp; Trends          <\/h2>  \n                  \n                  <div class=\"mt-1 mb-0 text-sm mb-2 excerpt\">\n            <span data-sheets-value=\"{\" data-sheets-userformat=\"{\">Stay on top of the latest real estate news, trends, government policies, and more.<\/span>          <\/div>\n        \n                  <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"no-underline text-themeBlue-medium hover:underline uppercase font-semibold text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n        \n        <div class=\"grid grid-cols-1 gap-y-4 lg:gap-y-7 mt-5\">\n          \n<article \n\tid=\"post-185235\" \n\tclass=\"content-card mb-0 flex flex-col  post-185235 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/zillow-faces-major-lawsuit-over-alleged-monopoly\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/10\/lawsuit_canva-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Zillow Faces a New Major Lawsuit Over an Alleged Monopoly\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">5 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/cropped-Jeff-V-Garcia-Photography-71788-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2025-10-17T10:26:15-06:00\">Oct 17, 2025<\/time><time class=\"updated\" datetime=\"2025-10-17T10:26:42-06:00\">Oct 17, 2025<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jeffvasishta\" class=\"no-underline line-clamp-1\" target=\"_blank\">Jeff Vasishta<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/zillow-faces-major-lawsuit-over-alleged-monopoly\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tZillow Faces a New Major Lawsuit Over an Alleged Monopoly\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">If you want to buy, sell, or rent real estate in the U.S., Zillow appears to be the only game in town. That\u2019s according to the Semrush Traffic Analytics tool,&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"185235\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-185235 -->\n<article \n\tid=\"post-184780\" \n\tclass=\"content-card mb-0 flex flex-col  post-184780 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/fed-cuts-rates-as-employment-softens-but-real-estate-recovery-remains-uncertain\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2025\/08\/fed_canva-2-340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"Fed Cuts Rates as Employment Softens, But Real Estate Recovery Remains Uncertain\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">4 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/02\/cropped-Jeff-V-Garcia-Photography-71788-scaled-1-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2025-09-17T13:01:25-06:00\">Sep 17, 2025<\/time><time class=\"updated\" datetime=\"2025-09-17T13:01:29-06:00\">Sep 17, 2025<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/jeffvasishta\" class=\"no-underline line-clamp-1\" target=\"_blank\">Jeff Vasishta<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/fed-cuts-rates-as-employment-softens-but-real-estate-recovery-remains-uncertain\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tFed Cuts Rates as Employment Softens, But Real Estate Recovery Remains Uncertain\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Following a weakening labor market, the Federal Reserve&#8217;s announcement that it will cut interest rates by 0.25% on Sept. 17 comes as welcome relief to the real estate industry, as&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"184780\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-184780 -->\n<article \n\tid=\"post-146041\" \n\tclass=\"content-card mb-0 flex flex-col  post-146041 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news category-biggerpockets-daily\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/when-will-the-fed-lower-rates-again\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/federal-reserve-1-768x388-1-340x225.webp\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"When Will The Fed Lower Rates Again? Sooner Than You Think\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">2 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/secure.gravatar.com\/avatar\/e8ccac5c5e56c35ffe5ca19e1c938129c6a3c884b861fc443e53c35f5ca54328?s=150&#038;d=mp&#038;r=g\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2022-12-19T08:59:28-07:00\">Dec 19, 2022<\/time><time class=\"updated\" datetime=\"2023-08-09T10:43:28-06:00\">Aug 09, 2023<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/lindsayfrankel\" class=\"no-underline line-clamp-1\" target=\"_blank\">Lindsay Frankel<svg class=\"h-5 inline ml-2\" viewBox=\"0 0 21 21\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><g clip-path=\"url(#a)\"><path d=\"M19.253 5.25a1.75 1.75 0 0 0-1.663 2.29l-1.42.902a2.188 2.188 0 0 1-2.868-.46L11.91 6.28a1.73 1.73 0 0 0 .342-1.03 1.75 1.75 0 1 0-3.5 0c0 .37.12.732.34 1.03L7.701 7.982a2.188 2.188 0 0 1-2.868.46l-1.42-.903a1.75 1.75 0 1 0-1.816 1.203l1.035 6.205a.438.438 0 0 0 .43.366H17.94a.437.437 0 0 0 .431-.366l1.035-6.204a1.75 1.75 0 0 0-.153-3.494Z\" fill=\"#FFC107\"\/><path d=\"M10.502 17.064c4.108 0 7.438-.98 7.438-2.188 0-1.208-3.33-2.188-7.438-2.188-4.109 0-7.439.98-7.439 2.188 0 1.208 3.33 2.188 7.439 2.188Z\" fill=\"#FFA000\"\/><path d=\"M10.502 17.501c-3.915 0-7.877-.901-7.877-2.625s3.962-2.625 7.877-2.625c3.914 0 7.876.9 7.876 2.625 0 1.724-3.962 2.625-7.876 2.625Zm0-4.375c-4.597 0-7.001 1.137-7.001 1.75s2.404 1.75 7 1.75c4.597 0 7.002-1.138 7.002-1.75 0-.613-2.405-1.75-7.001-1.75Z\" fill=\"#FFD54F\"\/><\/g><defs><clipPath id=\"a\"><path fill=\"#fff\" d=\"M0 0h21v21H0z\"\/><\/clipPath><\/defs><\/svg><\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/when-will-the-fed-lower-rates-again\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tWhen Will The Fed Lower Rates Again? Sooner Than You Think\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">Last week, the Fed raised its benchmark interest rate by&nbsp;half a percentage point, a slowdown from previous sprints. Still, the federal funds rate is at its highest since 2007. While&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"146041\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-146041 -->\n<article \n\tid=\"post-145886\" \n\tclass=\"content-card mb-0 flex flex-col  post-145886 post type-post status-publish format-standard has-post-thumbnail hentry category-real-estate-news category-biggerpockets-daily\">\n\n\t<header class=\"entry-header\">\t\t\t\n\t\t<!-- Image -->\n        \t\t\t<a class=\"post-thumbnail\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-long-it-takes-to-afford-rent-report\" target=\"_blank\" aria-hidden=\"true\" tabindex=\"-1\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"340\" height=\"225\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/12\/for-rent--340x225.jpg\" class=\"size-card w-full  m-0 aspect-[68\/45] object-scale-down wp-post-image\" alt=\"New Zillow Report Suggests Renters Must Work 63 Hours To Afford Rent In The U.S.\" title=\"\">\t\t\t<\/a>\n\t\t        \n\n\t\t<!-- Content Wrapper -->\n\t\t<div class=\"py-4 \">\t\n                            <div class=\"flex gap-4 justify-between items-center\">\n                    <!-- Category  -->\n                                            <a href=\"https:\/\/www.biggerpockets.com\/blog\/category\/real-estate-news\" class=\"transition-colors bg-themeBlue\/20 text-themeBlue-medium hover:bg-themeBlue hover:text-white px-2 py-1 mb-2 inline-block rounded-sm no-underline text-sm\" target=\"_blank\">News &amp; Trends<\/a>\n                    \n                                            <span class=\"text-sm text-gray-500 hidden lg:inline-block\">3 min read<\/span>\n                                    <\/div>\n            \n           <div class=\"flex gap-3 items-center my-2 flex-nowrap text-base\">\n                <!-- Avatar and Author Name -->\n                <img decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/07\/cropped-profile_small-150x150.jpg\" class=\"w-8 h-8 object-cover my-0 inline-block rounded-full\" alt=\"\" title=\"\"><span class='leading-snug text-slate-500 flex items-center'><span class='hidden whitespace-nowrap sm:inline-block md:hidden lg:inline-block pr-1'><span class='posted-on'><time class=\"entry-date published\" datetime=\"2022-12-07T14:02:45-07:00\">Dec 07, 2022<\/time><time class=\"updated\" datetime=\"2023-08-09T10:31:18-06:00\">Aug 09, 2023<\/time><\/span><\/span>&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/annacottrell\" class=\"no-underline line-clamp-1\" target=\"_blank\">Anna K. Cottrell<\/a><\/span>            <\/div>\n\n            <!-- Post title -->\n\t\t\t<h2 class=\"entry-title js-toc-ignore mt-4 mb-0 text-xl leading-snug text-left\">\n\t\t\t\t<a href=\"https:\/\/www.biggerpockets.com\/blog\/how-long-it-takes-to-afford-rent-report\" rel=\"bookmark\" class=\"whitespace-normal no-underline font-bold  text-slate visited:text-slate hover:text-themeBlue\" target=\"_blank\">\n\t\t\t\t\tNew Zillow Report Suggests Renters Must Work 63 Hours To Afford Rent In The U.S.\t\t\t\t<\/a>\n\t\t\t<\/h2>\n\t\t\t\n                        <p class=\"text-lg font-normal mt-3 text-slate-500 mb-1 line-clamp-3\">A recent report from&nbsp;Zillow&nbsp;highlights the U.S. affordability crisis creatively. Rather than just focusing on the rapid price growth in rents across the country over the past couple of years, the&hellip;<\/p>\n\t\t<\/div>\n\t<\/header>\n     <footer class=\"flex justify-between mt-auto\">\n        <!-- Comment Count -->\n        \t\t<span class='flex items-center space-x-2 text-sm' x-cloak x-data='commentCount()' :class=\"parseFloat(commentCount) < 1 || commentCount == '' ? 'hidden' : 'flex'\">\n\t\t\n            <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-5 w-5 text-slate text-opacity-50\" fill=\"none\" viewBox=\"0 0 24 24\" stroke=\"currentColor\">\n                <path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M17 8h2a2 2 0 012 2v6a2 2 0 01-2 2h-2v4l-4-4H9a1.994 1.994 0 01-1.414-.586m0 0L11 14h4a2 2 0 002-2V6a2 2 0 00-2-2H5a2 2 0 00-2 2v6a2 2 0 002 2h2v4l.586-.586z\" \/>\n            <\/svg>\n\n            <span x-ref=\"comment_count\" class=\"disqus-comment-count text-slate text-opacity-80\" data-disqus-identifier=\"145886\">\n\t\t\t\t\t\t\t<\/span>\n        <\/span>\n\t    <\/footer>\n<\/article><!-- #post-145886 -->        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n\n  \n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">The political backdrop<\/h2>\n\n\n\n<p>Biden\u2019s campaign proposal was to spend <a href=\"https:\/\/joebiden.com\/housing\/\" target=\"_blank\" rel=\"noopener\">$640 billion over 10 years<\/a> to address the home ownership gap. This is between: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>People who need rent and home buying assistance\u2014generally, those who spend more than 30% of their monthly income on rent, or who make less than 50% of a region\u2019s median income, and<\/li>\n\n\n\n<li>The roaring housing market, where rents and prices are rising faster than GDP growth and faster than wages.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>The Biden administration first tried to get the money passed through the Infrastructure Bill, but the inevitable political bartering led to a very watered-down package passing to the Senate. The next attempt to increase HUD funding will be through budget reconciliation, which the Democrats can <em>theoretically<\/em> do in the Senate with a simple majority.&nbsp;<\/p>\n\n\n\n<p>We shall see. Many pitfalls lie in wait. But the initial political will appears to be strong. There\u2019s also new bills being drafted which would explicitly increase vouchers by&nbsp; $3 to $4 million over the next few years, if passed. This alone would double the current program size, if not more.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">COVID has us rethinking economics<\/h2>\n\n\n\n<p>The repercussions of COVID have touched more than just health and safety matters\u2014the pandemic is increasingly becoming an economic and political force. Perhaps most importantly, the pandemic has ushered in a new philosophical approach to government spending.&nbsp;<\/p>\n\n\n\n<p>We\u2019ve seen two massive stimulus programs, both of which had a large slice of housing relief and housing support\u2014things like rent forgiveness, mortgage forbearance, moratoriums, and direct financial support of mortgage-backed securities. We did the stimulus and it didn\u2019t break anything, as best as we can tell. It\u2019s a good sign and it\u2019s the most recent sign, easing the political friction to keep on keepin\u2019 on.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Will the voucher increase happen?&nbsp;<\/h2>\n\n\n\n<p>There are several things that increase the odds of a change in Section 8 funding.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Democrats are in control<\/h3>\n\n\n\n<p>This one\u2019s pretty simple. Dems have the White House and Congress\u2014albeit, the Senate is split, and one Democratic senator from West Virginia is a Democrat in name only, having already bristled with the rest of the Democrats several times.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Token arguments against increasing the size of the deficit or budget are waning&nbsp;<\/h3>\n\n\n\n<p>The Republicans will naturally and reflexively push back on any increase to Federal spending on Section 8, just as they will on any spending, anywhere. It\u2019s their move. The GOP is already trying to plant a flag about the \u201cscourge of big government and increasing the deficit.\u201d But that\u2019s a hard narrative to pitch in 2021, after the GOP led the passage of nearly $7 trillion in new spending on tax cuts and stimulus over the past few years. <\/p>\n\n\n\n<p>I\u2019m not saying they won\u2019t still try to sell the same narrative\u2014just their efforts might fall on slightly deafer ears.&nbsp;<\/p>\n\n\n\n<p>The fact is that, starting in 2009, we\u2019ve run the money printing presses till steam came off of them\u2014and the economy is doing fine. That leaves some old arguments about the scourge of deficits in the past.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Obstacles to increasing Section 8<\/h2>\n\n\n\n<p>In addition to the political messes, there\u2019s some functional problems we\u2019d face with a massive increase to Section 8. A couple of big ones jump to the top of the list:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Many landlords won\u2019t accept vouchers<\/h3>\n\n\n\n<p>In most privately-owned dwellings in most areas of the country, accepting a housing choice voucher (HCV) is up to the landlord themselves. It\u2019s not mandatory. Some don\u2019t do it because of bias, i.e. \u201cSection 8 tenants are bad tenants and I don\u2019t want to deal with it\/them.\u201d And some don\u2019t do it because of myriad inspection programs and certifications that have to be done every year, which incur costs and time to the property owner.&nbsp;<\/p>\n\n\n\n<p>And if something goes wrong and an inspection fails, one or multiple tenants may need to be booted, disrupting the property owner&#8217;s cash flow. Messy stuff.&nbsp;<\/p>\n\n\n\n<p>The regional aspects play into this as well. Some states and municipalities have issues with paying promptly or dependably, and landlords there have spread their anecdotes with the local grapevine. And while it\u2019s federal law that a landlord is free to reject any potential tenant with a HCV, more than a dozen states and 100 municipalities have passed laws to try and supersede the federal statute. These are known as \u201c<a href=\"https:\/\/www.pewtrusts.org\/en\/research-and-analysis\/blogs\/stateline\/2021\/05\/12\/biden-wants-to-offer-more-housing-vouchers-many-landlords-wont-accept-them\" target=\"_blank\" rel=\"noopener\">source-of-income<\/a>\u201d laws, which broadly state that someone can\u2019t be rejected because of the source of their rent or income.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Housing authority needs revamps<\/h3>\n\n\n\n<p>We will likely have to revamp the entire management structure of the HCV program. That includes how it\u2019s administered, what the income thresholds are, how inspections and certifications are done\u2014a top to bottom change. That\u2019s the only way to ensure that more property owners want to accept Section 8 vouchers and \u201cjoin the system.\u201d&nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">The ripple effects of a maxed Section 8 program<\/h2>\n\n\n\n<p>Let\u2019s put all the political stuff to the side for a moment and just hypothesize about what it would mean if everyone who qualified for a housing voucher got one. That would mean about eight million additional households get vouchers\u2014a massive addition to the pool of Americans who can pay full-market rents.&nbsp;<\/p>\n\n\n\n<p>If we assume that everything else in the economy stays about the same in the coming years\u2014moderate GDP growth, increasing jobs, increasing wages, and moderate interest rates\u2014then our housing markets will be extremely strong.<\/p>\n\n\n\n<p>We already know there\u2019s a chronic lack of inventory as Millennials enter prime home buying years and Americans seek out more spacious rural and suburban homes. Low inventory of homes, growing incomes, and a massive new pool of market-paying renters<em> <\/em>equals higher rents in every region of the country. Regionally, there will be differences in how fast an increase in Section 8 vouchers affect average rents and average property values, but it will be a rising tide. This is just objective reasoning, nothing political.&nbsp;<\/p>\n\n\n\n<p>One could easily theorize that having eight million more households in this country would create a virtuous cycle, as more folks with home stability leads to more stable jobs, better education, and so on. Can we do all of that without breaking the proverbial bank or creating a federal financial disaster? I\u2019ll leave that to another discussion in another forum. On the whole, we should all want to see a massive increase to Section 8\u2014if it can be managed right.&nbsp;<\/p>\n\n\n\n<p>Our other entitlement programs, like Social Security, Medicare, and unemployment insurance are all immensely popular&#8230; at least in the sense that politicians don\u2019t dare touch them, on either side of the aisle, because their constituents like the programs. So if the Democrats can pull off the salesmanship to make affordable housing an entitlement program, it\u2019s likely to stay in place.&nbsp;<\/p>\n\n\n\n<p>The COVID pandemic only highlighted the gaps we have in our economy relating to income equality and housing. Changing Section 8 funding will require boatloads of time, money, political will, and political power. I do not know if we\u2019ll have enough of all four to bring the Administration\u2019s goals to life. <\/p>\n\n\n\n<p>However, the installation of Marcia Fudge as HUD Secretary is a sign that the Biden Administration\u2019s will is strong. She wants to make Section 8 an entitlement program\u2014a right, rather than a possibility\u2014and she seems to have the full backing of the White House. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Biden administration is attempting to expand the Section 8 program. What does this mean for investors?<\/p>\n","protected":false},"author":613562,"featured_media":139540,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,5528],"tags":[],"class_list":["post-139537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-real-estate-news"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/139537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613562"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=139537"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/139537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/139540"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=139537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=139537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=139537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}