Section 8 & Public Housing Glossary
Understanding HUD terminology is the first step to a successful housing application. This glossary covers the key acronyms and terms you will encounter when applying for Section 8 Housing Choice Vouchers, Public Housing, and other federally-funded rental assistance programs.
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Programs & Vouchers
Section 8
The common name for the Housing Choice Voucher (HCV) program, authorized under Section 8 of the U.S. Housing Act of 1937. It is the federal government's largest program for assisting very low-income families, the elderly, and the disabled to afford housing in the private rental market. The voucher holder pays approximately 30% of their adjusted income toward rent, and the voucher covers the rest up to the area's Fair Market Rent.
HCV (Housing Choice Voucher)
The official name for the Section 8 program. HCVs are "portable," meaning you can use them at any privately-owned rental unit that meets program requirements. If you move to a new city or state, you can transfer your voucher through a process called "portability." Approximately 2.3 million households nationwide are assisted by HCVs.
PBV (Project-Based Voucher)
A variant of the Housing Choice Voucher that is attached to a specific apartment unit or building rather than being portable. The subsidy stays with the unit — if you move out, you lose the assistance. However, PBV waitlists often move faster because fewer applicants know about them. After 12 months of PBV tenancy, you may request a standard portable voucher.
Public Housing
Government-owned rental housing managed directly by local Public Housing Authorities. Unlike Section 8 vouchers, Public Housing units are owned by the PHA and located in designated developments. Rent is typically set at 30% of the tenant's adjusted monthly income. There are approximately 1 million Public Housing units nationwide.
RAD (Rental Assistance Demonstration)
A HUD program created in 2012 that allows Public Housing Authorities to convert their aging Public Housing developments into Project-Based Section 8 contracts. This enables PHAs to leverage private financing for renovations while maintaining affordability protections for residents. Tenants retain their rights and cannot be displaced.
Mainstream Vouchers
A specialized type of Housing Choice Voucher specifically designated for non-elderly persons with disabilities. Mainstream Vouchers function similarly to standard HCVs but are targeted to serve people with disabilities who are transitioning out of institutional settings, at risk of institutionalization, or homeless.
VASH (Veterans Affairs Supportive Housing)
A joint program between HUD and the U.S. Department of Veterans Affairs that provides rental assistance vouchers combined with case management and clinical services to homeless veterans. VASH vouchers are administered by local PHAs, and eligible veterans are referred through VA medical centers.
LIHTC (Low-Income Housing Tax Credit)
A federal tax incentive program that encourages private developers to build or rehabilitate affordable rental housing. LIHTC properties are not managed by PHAs but offer below-market rents to qualifying tenants. There are two types: the 9% credit for new construction and the 4% credit for acquisition/rehabilitation projects.
Agencies & Organizations
HUD (Department of Housing and Urban Development)
The federal cabinet-level agency responsible for national housing policy. HUD provides funding to local PHAs, sets Fair Market Rents, establishes income limits, and oversees compliance with housing program rules. HUD does not directly administer waitlists — that is done by local PHAs.
PHA (Public Housing Authority / Public Housing Agency)
A local government entity that receives federal funds from HUD to administer housing programs within its jurisdiction. PHAs manage waiting lists, determine applicant eligibility, issue vouchers, inspect rental units, and make Housing Assistance Payments to landlords. There are over 3,300 PHAs across the United States. Each operates independently with its own policies and preferences.
HFA (Housing Finance Agency)
State-level agencies that finance affordable housing development, administer LIHTC tax credits, and sometimes operate statewide housing voucher programs. HFAs are separate from local PHAs and typically focus on housing production and financing rather than direct tenant assistance. Examples include California's HCD and Texas's TDHCA.
Eligibility & Income
AMI (Area Median Income)
The midpoint of a geographic area's income distribution — half of households earn more, half earn less. HUD calculates AMI annually for every metropolitan area and non-metropolitan county. Housing programs use AMI percentages to define eligibility: "extremely low income" is at or below 30% AMI, "very low income" is at or below 50% AMI, and "low income" is at or below 80% AMI. For Section 8, at least 75% of new vouchers must go to applicants at or below 30% AMI.
FMR (Fair Market Rent)
HUD's estimate of the cost of renting a moderately-priced unit in a specific area. FMRs are set at the 40th percentile of gross rents (rent plus tenant-paid utilities) for standard-quality units. They are used to determine the maximum subsidy a voucher will cover and are updated annually. FMRs vary dramatically — a 2-bedroom FMR in San Francisco may be over $3,000/month while a rural area might be under $800.
Income Limits
The maximum household income allowed to qualify for housing assistance, calculated as a percentage of AMI and adjusted for family size. HUD publishes income limits annually for every county and metropolitan area. For a family of four, "very low income" (50% AMI) might be $45,000 in a rural area but $65,000+ in a high-cost metro.
Local Preference / Residency Preference
A priority system used by many PHAs that gives higher ranking on the waiting list to applicants who live or work within the PHA's jurisdiction. Other common preferences include: working families, veterans, victims of domestic violence, persons with disabilities, and the elderly. Each PHA sets its own preference system within HUD guidelines.
Application Process
Waiting List (Waitlist)
The queue of approved applicants waiting to receive housing assistance. Because demand far exceeds supply, most PHAs maintain waiting lists that can contain thousands of names. Waiting lists may be "open" (accepting new applications), "closed" (not accepting applications), or use a periodic lottery system. Position on the list is determined by date of application and applicable preferences.
Waitlist Lottery
A random selection process used by high-demand PHAs instead of first-come, first-served. During a lottery, the PHA opens applications for a limited window (sometimes just 24-72 hours), then randomly selects applicants to place on the waiting list. This method is used to give all applicants an equal chance regardless of whether they applied in the first minute or the last hour.
Voucher Briefing
A mandatory orientation session held by the PHA when you reach the top of the waiting list and are issued a voucher. The briefing covers program rules, your obligations as a tenant, how to search for housing, rent reasonableness, and the inspection process. You typically have 60-120 days after the briefing to find a qualifying unit.
Portability
The ability to use your Housing Choice Voucher in a different PHA's jurisdiction from where it was originally issued. Portability is a key advantage of HCV over Public Housing and PBV — you can move anywhere in the country where a PHA administers the program. The process requires coordination between your original PHA (the "initial PHA") and the one where you want to move (the "receiving PHA").
HQS Inspection (Housing Quality Standards)
A mandatory inspection performed by the PHA before approving a rental unit for voucher use. The inspector checks that the unit meets HUD's minimum standards for safety, sanitation, and habitability — including working smoke detectors, secure locks, no lead paint hazards, and functional plumbing and electrical systems. The unit must pass inspection before the PHA will begin making payments to the landlord.
Financial Terms
TTP (Total Tenant Payment)
The amount a housing assistance recipient is required to pay toward rent each month. TTP is calculated as the highest of: 30% of adjusted monthly income, 10% of gross monthly income, the welfare rent (in applicable states), or a PHA-established minimum rent (typically $0-$50). The housing authority pays the landlord the difference between the TTP and the approved contract rent.
HAP (Housing Assistance Payment)
The monthly subsidy payment made directly from the PHA to the landlord on behalf of the voucher holder. The HAP amount equals the difference between the payment standard (based on FMR) and the tenant's TTP. If the actual rent exceeds the payment standard, the tenant pays the difference out of pocket in addition to their TTP.
Payment Standard
The maximum monthly subsidy a PHA will pay for a voucher holder's housing. PHAs set their payment standards between 90% and 110% of the local FMR (with HUD approval, they can go higher in high-cost areas). If you find a unit that rents for more than the payment standard, you are responsible for the difference — but your total out-of-pocket rent cannot exceed 40% of your adjusted income at initial lease-up.
Utility Allowance
An amount established by the PHA that represents the estimated monthly cost of tenant-paid utilities (gas, electric, water, etc.). The utility allowance is subtracted from the tenant's TTP. If the utility allowance exceeds the TTP, the PHA issues a "utility reimbursement" payment directly to the tenant to help cover utility costs.
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