Affordable Housing Vs Section 8: What’s The Difference?

When you’re looking for a place to live that’s actually affordable, you’ll quickly run into terms like Section 8, Public Housing, and HUD.

At first glance, they all seem pretty similar, but it’s important to understand the differences. Let’s go over affordable housing vs Section 8 to straighten out the confusion.

Affordable Housing Vs Section 8: What’s The Difference?

Affordable housing refers to privately-owned apartment complexes that were built (or renovated) using federal or state funding in exchange for keeping rents low for qualifying tenants.

To live in affordable housing, your income has to fall below a certain threshold, usually based on the area median income (AMI).

These properties are managed by private landlords or companies, not the government. So even though the rent is reduced, it’s not because of a monthly subsidy like Section 8; it’s because the property itself was financed with the understanding that it would remain affordable for a set number of years.

Section 8 is a federally funded rent subsidy program for low-income households. Program participants have to meet strict eligibility criteria to qualify for Section 8.

See Related Article: Who Can I Add To My Section 8 Voucher?

Do Affordable Housing Properties Accept Section 8?

Some affordable housing properties accept Section 8 vouchers, which means you could combine both programs to make rent even more manageable. But if they do accept vouchers, there’s often a separate waiting list just for those units. Depending on the area, that waiting list might be months or even years long.

• You can live in affordable housing without a Section 8 voucher
• You might be able to use a Section 8 voucher at an affordable housing property if they accept them, and there’s availability
• Either way, you have to meet income guidelines to qualify

Who Qualifies For Section 8 Or Affordable Housing?

Eligibility for both programs generally depends on your household income, family size, citizenship status, and sometimes local preferences (like veterans, seniors, or people with disabilities).

For Section 8:

• Income must usually be below 50% of the Area Median Income (AMI)
• Preference is often given to those earning 30% or less of AMI
• You must be a U.S. citizen or have eligible immigration status

Some local housing authorities give priority to people who are homeless, fleeing domestic violence, or living in substandard housing.

For Affordable Housing: 

• Income limits are usually higher than for Section 8, sometimes up to 80% of AMI, depending on the property.
• You still need to show you can afford the rent, even if it’s reduced.

Is Section 8 Considered Public Housing?

No, Section 8 is not considered public housing, but they are related. What’s the difference between public housing and Section 8?

Public housing typically refers to government-owned buildings, such as apartment complexes or housing developments, that are built, owned, and managed by a local Public Housing Authority (PHA). If you live in public housing, the government is your landlord.

Section 8, officially known as the Housing Choice Voucher Program, works differently. It’s a federally funded voucher program that helps low-income families pay rent in privately owned housing. You find your own apartment or house (as long as it meets the program’s standards), and the government pays part of your rent directly to the landlord.

• Public housing places you inside a government-managed community. Your neighbors are also part of the program
• Section 8 lets you choose from properties in the private rental market. No one will know your rent is subsidized unless you tell them.
• If you have a Section 8 voucher, you have to find a landlord willing to accept it, and not all do, even though many places have laws against discrimination based on voucher status

Section 8 vs Public Housing: Main Differences

Feature	Public Housing	Section 8 (Housing Choice Vouchers)
Ownership	The government (PHA)	Private landlords
Where you live	Assigned to a public housing project	Choose your own apartment or house
How much rent you pay	Typically, 30% of your income	Typically, 30% of your income, the voucher pays the rest
Freedom to move	You have to live in the assigned unit unless you apply for a transfer	Can move freely (even to other states)

How Long Is The Wait For Section 8?

In many cities, waitlists are closed more often than they’re open, and when they do open (often for just a few days), they fill up fast.

It’s not uncommon to be on a list for months or even years.

Some housing authorities use a lottery system to select applicants when demand is high.

If you’re thinking about applying, check nearby cities and counties; smaller or more rural areas may have shorter wait times. You can also apply to more than one housing authority.

Is HUD And Section 8 The Same Thing?

Is HUD and Section 8 the same thing? Not exactly, but they are connected.

HUD stands for the U.S. Department of Housing and Urban Development, the federal agency that oversees many housing programs, including Section 8 and public housing.

• HUD is the parent agency
• Section 8 is one of its programs
• Public housing is another one of its programs

HUD sets the rules, manages the funding, and makes sure local housing authorities are running things the way they should.

HUD isn’t just about renting. The department also runs programs that make homeownership more affordable, especially for first-time buyers.

Through initiatives like the Good Neighbor Next Door program, FHA-backed loans, and housing counseling services, HUD helps people buy homes with lower down payments, reduced interest rates, or discounted prices on eligible properties.