Privately owned residential rental units can be part of the low-income rental assistance program established in 1974 as an amendment to Section 8 of the 1937 Housing Act. There are two main types of Section 8 programs: “place-based” and “tenant-based.”
In the tenant-based program, HUD provides rent subsidies directly to landlords on behalf of eligible low-income residents, allowing them to pay only a limited portion of their income for rent (referred to as the voucher program). Alternatively, residents may receive full rent subsidies, covering their entire rent, without having to contribute any portion themselves (known as the certificate program).
On the other hand, in place-based Section 8 programs, the rental assistance is linked to a specific rental property rather than an individual household.