You Cannot Use a Section 8 Voucher to Buy a House
Section 8 vouchers pay your landlord's rent each month — they do not work toward a down payment, and you cannot use them to purchase a home. The program is designed for renters only. If you own the property, you are no longer a tenant, and Section 8 stops.
That said, you can own a home and still receive Section 8 if you rent out part of it to a tenant and use the voucher to help pay that tenant's portion of the rent. This is called shared housing, and it requires approval from your local housing authority before you move forward.
If you want to buy a home outright without Section 8, you will need to save a down payment and get a mortgage through a bank or lender — Section 8 does not help with either step. Some first-time homebuyer programs exist through state and local governments, but those are separate from Section 8 and have their own rules.
Key Takeaways
- Section 8 vouchers cover rent only and stop the moment you become a homeowner, so you cannot use them to buy a house.
- You can own a home and rent part of it to a Section 8 tenant, but you must tell your housing authority before you purchase and get written permission.
- If you want to buy a home while on Section 8, you will need to save money separately or look into first-time homebuyer programs in your state or city.
- Some housing authorities allow shared housing arrangements where you live in part of the home and rent the other part to a voucher holder, but rules vary by location.
How Shared Housing Works With Section 8
If you own a home and want to rent part of it to someone with a Section 8 voucher, the housing authority must inspect the unit and approve it before the tenant moves in. The voucher will pay the tenant's share of the rent directly to you each month, just as it would for any landlord.
You will need to sign a lease with the tenant, and the rent amount must be reasonable for your area — the housing authority sets a payment standard, and the rent cannot exceed that. Your local housing authority's inspection team will check the unit for safety, plumbing, heat, and other basic standards before approving it.
Not all housing authorities allow shared housing, so you must contact yours first and ask whether the program exists in your area. If it does, they will tell you what paperwork you need and what the inspection process looks like. Some authorities require you to own the home before you explore; others will work with you during the purchase process.
Saving for a Down Payment While on Section 8
Section 8 does not reduce the amount you can save, so you can work toward a down payment while you receive voucher payments. The money you save from your own income is yours to keep and use however you want.
Many people on Section 8 save by keeping their housing costs low — because the voucher covers most of the rent, you may have more money left over each month than someone paying full market rent. That extra money can go into a savings account for a down payment.
Some banks and credit unions offer special savings programs for first-time homebuyers, and some state housing finance agencies have down payment help programs. These are not connected to Section 8, but they exist to help people in your situation. Your state's housing finance agency website will list programs available where you live.
First-Time Homebuyer Programs in Your State
Many states and cities run homebuyer programs that help with down payments, closing costs, or low-interest mortgages. These programs do not care whether you receive Section 8 — they look at your income, credit score, and savings. You can be on Section 8 and still use them.
Common programs include down payment information (money you do not have to repay), forgivable loans (loans that disappear if you stay in the home for a set number of years), and favorable mortgage terms through state-backed lenders. Some programs are income-based, meaning you must earn below a certain amount to take part.
To find programs in your area, search "[your state] first-time homebuyer program" or contact your state's housing finance agency directly. Your city or county may also run programs. A nonprofit housing counselor can also tell you what exists near you and help you understand whether you meet the requirements.
What Happens to Your Section 8 Voucher When You Buy
The moment you close on a home and become the owner, your Section 8 voucher ends. You cannot use it anymore because you are no longer a renter. The housing authority will stop sending payments to your landlord (or to you, if you were receiving payments directly).
If you plan to buy a home, tell your housing authority in advance so they know when to end your voucher. Some housing authorities have a waiting list for vouchers, and ending yours early means someone else can use it.
After you buy, you will own the home outright or have a mortgage with a bank. Your monthly housing payment will be whatever your mortgage is, not a Section 8 amount. You will also be responsible for property taxes, insurance, and maintenance — costs that renters do not pay.
Renting Part of Your Home to a Section 8 Tenant
If you own a home and want to rent one unit or room to a Section 8 tenant while you live in the other part, this is allowed in most places — but you must get permission first. Contact your local housing authority and tell them you own the property and want to rent to a voucher holder.
The housing authority will send an inspector to the rental unit. They will check that it has its own entrance, kitchen, and bathroom (or meets the authority's definition of a separate unit). The unit must pass safety and quality standards. Once it passes, the authority will issue a voucher for that unit, and you can advertise for a tenant.
When a tenant with a voucher moves in, the housing authority pays you their share of the rent each month. You sign a lease with them just like any other landlord would. If you live in the other part of the home, you are both homeowner and landlord, and you must follow all landlord-tenant laws in your state.
Income and Credit Requirements for Buying a Home
Banks and mortgage lenders will look at your income and credit score to decide whether to lend you money for a home. Section 8 payments do not count as income for a mortgage process — only your wages, salary, or other earned income do. This can make it harder to borrow if Section 8 is a large part of your household budget.
Your credit score matters a lot. Most lenders want a score of at least 580 to 620, though some will go lower. If your credit is poor, you may need to work on it before explore for a mortgage, or you may need to find a lender that specializes in lower-credit borrowers (though they often charge higher interest rates).
A nonprofit housing counselor can review your finances and tell you whether you are ready to buy, or what you need to work on first. Many counselors are free or low-cost. Your local housing authority or a 211 call can connect you to one.
Frequently Asked Questions
Can I use my Section 8 voucher to help pay a mortgage?
No. Section 8 only pays rent to a landlord. Once you own the home, the voucher ends. You cannot use it to pay a mortgage or property taxes.
What if I own a home and want to rent it out — can I get Section 8 tenants?
Yes, if your housing authority allows it. You must tell the authority you own the property and want to rent to voucher holders. They will inspect each unit before approving it. The rent you charge must meet the authority's payment standard for your area.
Does being on Section 8 hurt my chances of getting a mortgage?
Not directly, but it can make it harder because Section 8 payments do not count as income on a mortgage process. Lenders care about your wages and salary, not your voucher. If Section 8 is most of your income, you may struggle to borrow enough for a down payment.
Can I save money for a down payment while I receive Section 8?
Yes. Money you earn from work is yours to keep and save. Because Section 8 covers most of your rent, you may have more left over each month than someone paying full rent, which can help you save faster.
What happens if I buy a house and then lose my job?
You will owe your mortgage payment to the bank regardless of your employment. Section 8 will not help because you are no longer a renter. If you cannot pay, you risk foreclosure. This is why lenders check your income and credit before lending — they want to know you can pay even if things change.