No, they are not the same, though they often work together

Low income housing is any rental property where the rent is set below market rate, usually because the building received public funding or tax breaks. Section 8 is a federal voucher program that pays part of your rent at any property the landlord agrees to accept it on. A Section 8 tenant can live in low income housing, but most low income housing residents do not use Section 8, and most Section 8 voucher holders rent from private landlords at market-rate properties.

The confusion happens because both programs serve low income renters and both involve government money. But they work in opposite directions: low income housing is a property-based program (the subsidy stays with the building), while Section 8 is a tenant-based program (the subsidy follows you to whatever property you choose).

Key Takeaways

  • Low income housing is a physical building where rent is permanently reduced; Section 8 is a voucher you carry to any landlord who will accept it.
  • Low income housing is managed by a housing authority or nonprofit; Section 8 is administered by your local public housing authority but you choose the landlord.
  • Low income housing has a waiting list that can be years long; Section 8 waiting lists are also long but vary by region and sometimes close entirely.
  • You can use Section 8 at a low income housing building if the landlord participates in the program, but most low income residents pay rent directly without a voucher.

How low income housing works

Low income housing is a building or complex where the owner has agreed to keep rents low in exchange for government funding, tax credits, or both. The most common source is the Low Income Housing Tax Credit (LIHTC), which gives developers a tax break if they rent to households below a certain income threshold. Other buildings are owned directly by a housing authority or a nonprofit organization.

When you rent a low income housing unit, you pay rent based on your income — typically 30 percent of your gross monthly income, though the exact amount depends on the building's rules and the program that funds it. The building owner absorbs the difference between what you pay and the actual cost to operate the unit. You do not receive a voucher; you straightforward pay the reduced rent directly to the landlord.

Low income housing is permanent. Once a building is designated as low income housing, it stays that way for a set period — often 15 to 30 years depending on the funding source. This means the reduced rent is built into the property itself, not dependent on your individual circumstances changing.

How Section 8 works

Section 8 is a federal voucher program run by your local public housing authority. When you receive a Section 8 voucher, the housing authority pays a portion of your rent directly to your landlord. You pay the difference out of pocket, which is typically 30 percent of your income. The voucher amount is based on the Fair Market Rent (FMR) for your area — a figure the Department of Housing and Urban Development sets each year for different bedroom sizes.

The key difference: you choose the property and the landlord, as long as the rent does not exceed the FMR and the landlord agrees to participate in the program. You can move to a different property and take your voucher with you. The subsidy follows you, not the building.

Section 8 is temporary for the individual. Your voucher is good for a set period (usually two years), and you must recertify your income and housing situation to keep it. If your income rises above the program limit, you may lose the voucher.

Waiting lists and how long they take

Both programs have waiting lists, and both can be very long. Low income housing waiting lists vary by building and location. Some buildings have no wait; others have waits of three to five years or longer. A few cities have stopped accepting new applications because the wait is so extensive.

Section 8 waiting lists are managed by your local public housing authority and vary dramatically by region. Some areas have waits of several years; others have closed their lists entirely and are not accepting new applications. A few housing authorities have short waits or even no wait, but this is rare. You can call your local housing authority to find out whether their Section 8 list is open and how long the current wait is.

You can be on both a low income housing waiting list and a Section 8 waiting list at the same time. Getting into low income housing does not disqualify you from Section 8, and vice versa.

Income limits and rent calculations

Both programs set income limits based on the area median income (AMI) for your region. Low income housing typically serves households at 50 to 80 percent of AMI, though some buildings serve households at 30 percent of AMI or lower. Section 8 income limits are similar but vary by housing authority.

The way rent is calculated differs. In low income housing, you pay a percentage of your income (usually 30 percent) directly to the landlord, and that amount is set by the building's rules. In Section 8, you also pay roughly 30 percent of your income, but the housing authority pays the landlord the difference between your payment and the FMR. If the actual rent is lower than the FMR, you pay less.

If your income rises, low income housing rent may increase depending on the building's lease terms. Section 8 rent recalculation happens at recertification, usually annually. In both cases, there are income thresholds above which you no longer may have access to for the program.

Can you use Section 8 in low income housing

Yes, but only if the landlord participates in the Section 8 program. Some low income housing buildings do accept Section 8 vouchers; others do not. If a low income housing building accepts Section 8, you can use your voucher there just as you would at any other property.

In practice, this is uncommon. Most low income housing residents pay reduced rent directly without a voucher. Most Section 8 voucher holders rent from private landlords at market-rate properties. The two programs operate separately most of the time, even though they serve the same population.

If you are interested in using Section 8 at a specific low income housing building, contact the building's management office and ask whether they participate in the Section 8 program. If they do, the process is the same as using your voucher anywhere else.

Which program might be right for your situation

Low income housing makes sense if you want stable, predictable rent that will not change as your income fluctuates, and if you are willing to wait for a specific building to have an opening. The rent is lower on average, but you have less choice about where you live.

Section 8 makes sense if you want to choose your own property and landlord, and if you are willing to move if needed. You have more flexibility, but you must recertify regularly and your voucher can be taken away if your income rises or if you violate program rules.

Both programs have long waiting lists. If you are looking for housing now, you should explore to both and also explore other options like nonprofit housing programs, emergency rental information, or private landlords who offer reduced rent. Getting into either program takes time.

Frequently Asked Questions

If I am on a Section 8 waiting list, can I also be on a low income housing waiting list?

Yes. Being on one waiting list does not prevent you from being on another. You can explore to multiple low income housing buildings and to Section 8 at the same time. If you get into one program before the other, you can stay on the other list in case your situation changes.

What happens to my Section 8 voucher if I move to low income housing?

You keep your voucher. If you move to low income housing that does not accept Section 8, you straightforward stop using it and pay the reduced rent directly. If you move to low income housing that does accept Section 8, you can continue using your voucher there. You do not lose the voucher by changing housing.

Is low income housing rent cheaper than Section 8?

Not necessarily. Both programs typically charge 30 percent of your income as rent. The difference is that low income housing rent is based on your actual income, while Section 8 rent is based on the Fair Market Rent for your area. In high-cost areas, Section 8 can be cheaper; in low-cost areas, low income housing might be cheaper. It depends on your specific income and your local market.

Can I lose my low income housing if my income goes up?

It depends on the building's rules and funding source. Some low income housing buildings allow you to stay even if your income exceeds the limit, though your rent may increase. Others require you to move out. Check your lease and ask the building management what happens if your income rises.

How do I find low income housing buildings in my area?

Contact your local housing authority or search the HUD website for properties in your area. You can also call 211 (a referral service) and ask for low income housing resources. Many nonprofits maintain lists of available buildings and their waiting list status.