Before You Look For Subsidized Housing, Read This

We’ll reveal what those things are so you don’t have any surprises along the way.

If you are not familiar with subsidized housing, that’s because you may have heard it called by different names, such as project-based Section 8 or HUD apartments. What is this type of housing? It’s where a large portion of your rent (sometimes all of it) gets paid by the government, and you’re responsible for paying the rest.

If this sounds like a housing voucher, they are somewhat similar, as both money-saving methods result in you paying less rent out of your own pocket each month. But unlike a voucher, the cheap rent in subsidized housing, project-based Section 8, or HUD apartments is tied to the property.

While subsidized housing can provide stability and help you fix your finances, here are some things you should be aware of before you start searching for it.

The Downsides To Subsidized Housing

The following are not reasons why you should avoid subsidized housing altogether. Instead, think of them as obstacles you will encounter that you should be prepared for.

• As mentioned, the cheap rent with subsidized housing is tied to the property. Once you move, you lose it. With a housing voucher, you can take those savings with you to the next property.
• Many HUD apartments have security deposits that you will be responsible for.
• You may have to search a while until you find a unit that fits your family’s size, safety, and cleanliness needs.
• You will have to be persistent and contact as many affordable housing buildings as possible until you find an opening.

The Advantages Of Subsidized Housing

Contrary to popular belief, subsidized housing or project-based Section does not necessarily mean you will be living in “the projects.” Are there some properties that may be in less than desirable areas or are older and in need of some TLC? Sure, but you’d be surprised at how nice some subsidized housing can be.

Perhaps the biggest advantage of subsidized housing is the cheap rent. As with a voucher, your maximum out-of-pocket rent expenses should be 30 percent of your income each month, just as with a voucher. Even better, if you make no income since you cannot work due to a disability or other reason, your rent in subsidized housing could be free. Some HUD apartments include utilities and have no application fees, which are extra ways subsidized housing can save you money every month.

Another benefit of subsidized housing is it’s easier to attain. You apply directly to affordable housing buildings, which can significantly cut down on your wait time, unlike vouchers where waitlists can last up to 10 years. With some highly-populated areas having anywhere from 20-50 affordable housing buildings, you should have several options, and you could find yourself in a new place within a matter of months. You can find such buildings via Google or the HUD Resource Locator.