You can receive HUD rental assistance in many different ways, but two of the most popular options are public housing and private subsidized housing. Both of these programs help low-income people and families find affordable places to rent. Here are the key differences between these two programs:
Public housing allows low-income individuals and families to rent affordable apartments directly from the local Public Housing Agency (PHA). If you choose this program, the PHA is your landlord and you pay rent that’s lower than most other units in the area for an assigned rental.
Subsidized housing, on the other hand, is a relief program where landlords receive funding from HUD to offer their privately owned apartments and houses at a more affordable rate to low-income families. If you choose this program, you have a property owner or management company as your landlord and you pay them rent.
But your rent is lower than many other places in the area because HUD is providing your landlord subsidy payments.
In both programs, upon approval, you are assigned a unit. That means you aren’t able to select where exactly you want to live like you would with the Section 8 housing program.
When it comes to HUD calculating a qualifying individual’s or family’s rental costs, the process is very similar. Neither public housing nor privately owned subsidized housing is offered at a fixed rate. That’s because the cost of rent for a unit actually depends on the applicant’s income.
In general, tenants using HUD rental assistance programs pay no more than 30% of their income on rent. This is so you don’t spend any more than 30% of your earnings on rent and can spend your money on other important costs, like food, clothing, childcare and more.
However, the application processes for these two programs differ. To apply for public housing, you must submit an application to your local Public Housing Agency. On the other hand, to apply for subsidized housing, you must submit an application to the housing development you want to live in. If you get approved for either program, you are assigned a housing unit.
Ready to find the rental relief program that can help you? Find your Public Housing Agency online, and start your application today!