Rent Subsidy Program

Posted on by Forest in Cheapest Places To Live, General, Opinion, Saving Money & Finances

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Since the great depression the USA Federal Government have had a rent subsidy program in place more commonly known as Section 8 housing or just Section 8. Section 8 in it’s essence was a way to help low income families in a time of crisis to find affordable housing to rent. Obviously they could not force land lords to bring down rental prices so the program aims to cover a portion of the rent and allow the renter to afford a reasonable place to live by only typically paying around 30% of their total rent. Section 8 is still going and is pretty much the same deal, In some places State rent subsidy programs have also been introduced as variations of section 8 or complimentary schemes. Over the years it has had the reputation of placing many a young family in low quality neighborhoods amongst high drug use and low employment rates. Many people even relate the quality of a neighborhood by the amount of Section 8 tenents believing that it is the low class tenants themselves that have destroyed the neighborhood.

While the fact of who is on section 8 and why they are on it could be debated, I think it is fair to say that any young family of any moral integrity could end up needing help from a federal rent subsidy program in the current economic climate. I don’t think being poor is something you should be made to feel bad about so it hurts me to think that so many people make an instant judgment about people getting help from section 8 or any related schemes. However the tough economic times have produced an interesting climate for section 8 housing…..

Why the Rent Subsidy Program is Making Many People Happy and Many Irate!

The housing market as we all know is a complete and utter mess right now. Just before the latest recession there was a housing high point with a boom in new builds, renovations and people buying left, right and center. That has left to an unbelievable amount of high quality housing to be sitting gathering dust. For housing market bottom feeders this also means that high quality housing can be picked up at dirt cheap prices.

Section 8 can be a great program for a property owner with an empty place. The government pay the land lord electronically and they don’t have to deal direct with the tenant so no problems there! For the renter they just need to pay a portion of the rent and it allows them to afford a place to live, as mentioned before in the past these affordable places were often the lowest of the low. Cockroach infested holes in what looked like war torn neighborhoods.

But will this abundance of properties owners are turning to Section 8 and allowing low priced rent to bring in at least some income back on the property. For the bottom feeders they may even be turning a heft profit!

Hard hit places like Las Vegas are reportedly renting mini mansions to many poor families under the section 8 rent subsidy program. Families that could previously barely afford a 1 bed apartment are finding themselves with walk in wardrobes and double sitting rooms!

From the POV of the low income renter this is a dream come true. The opportunity to live in a nice neighborhood with many complexes boasting pools and gyms and such luxuries. However for the opposite end of the scale, the owners who live there and the non-section 8 renters animosity and anger could be building with the ideas that low class could be seeping into their neighborhood and it could even affect house prices to bring them lower than they already are!

It will be very interesting to see what happens to these new mixed communities and how the image of Section 8 will continue to change over the next few years and through a hopeful economic recovery. Maybe something great can be proved and as Majora Carter says, (paraphrased) If you treat people with dignity then they will often surprise you in the way they treat you back. (You should watch Majora Carter’s excellent TED speech on Urban Renewal).

A slew of amazing high quality Section 8 housing can be found on GoSection8.com

Now over to you……. Let me know your thoughts on the rent subsidy program and it’s current state!

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