If you are searching for affordable housing, you have likely heard of both Section 8 vouchers and LIHTC apartments. These are the two largest affordable housing programs in the United States, but they work very differently. Section 8 (officially the Housing Choice Voucher program) gives you a portable subsidy you carry to a landlord of your choice. LIHTC (Low-Income Housing Tax Credit) produces affordable apartment buildings where the rent is set below market rate. Understanding how each works helps you decide which one to pursue, or whether you can use both at the same time.
What Is Section 8 (Housing Choice Voucher)?
The Housing Choice Voucher program is administered by the U.S. Department of Housing and Urban Development (HUD) and run locally by roughly 2,000 Public Housing Agencies (PHAs) across the country. When you receive a voucher, you search for a private landlord willing to accept it. You pay approximately 30% of your adjusted monthly income toward rent, and the PHA pays the rest directly to the landlord, up to a local payment standard.
The key feature of Section 8 is portability. The subsidy follows you, not the apartment. If you move to another unit or even another city, you can often take your voucher with you (subject to PHA rules and portability procedures).
How Section 8 Rent Is Calculated
Your tenant share of rent is calculated as roughly 30% of your adjusted monthly income. For example, if your household brings in $1,500 per month in adjusted income, your portion of rent is around $450. The PHA covers the gap between your $450 and whatever the landlord charges, up to the payment standard for your area and unit size.
If the rent on a unit exceeds the payment standard, you may pay more than 30% of income at move-in, but your share cannot exceed 40% of adjusted monthly income at lease signing.
When your income changes, your rent share adjusts. If you lose a job or your hours get cut, you report it to your PHA and your portion can drop. If your income rises, your portion rises too.
Section 8 Income Limits
To qualify for Section 8, your household income must generally be at or below 50% of the Area Median Income (AMI) for your county or metro area. HUD updates these limits annually. By law, PHAs must issue at least 75% of new vouchers to families at or below 30% AMI (extremely low income).
The table below shows approximate income thresholds at 50% AMI for a few example household sizes. Actual limits vary significantly by location, so check with your local PHA for precise figures.
| Household Size | Income Limit (50% AMI, national estimate) |
|---|
| 1 person | approximately $29,000 to $45,000 |
| 2 people | approximately $33,000 to $51,000 |
| 3 people | approximately $37,000 to $58,000 |
| 4 people | approximately $41,000 to $64,000 |
| 5 people | approximately $44,000 to $69,000 |
These ranges are wide because AMI varies enormously between rural areas and expensive metros. Your local PHA publishes the exact limits for your area.
The Section 8 Waitlist Problem
Demand for vouchers far exceeds the supply. Most PHAs operate waitlists that are years long, and many have closed their waitlists entirely because the backlog is already too large. Some PHAs open their waitlists periodically, sometimes for only a few days, before closing again.
This means applying for Section 8 is a long game. Check your local PHA website regularly, sign up for notifications, and apply to every open waitlist in your region.
What Is LIHTC (Low-Income Housing Tax Credit)?
LIHTC is a federal tax incentive program that encourages private developers to build or rehabilitate affordable rental housing. The government awards tax credits to developers, who sell those credits to investors. The investors fund the construction, and in exchange the developer keeps rents below market rate for income-qualified tenants.
As a renter, you do not apply to a program. You apply to a specific LIHTC property. The property has a set number of affordable units at set rent levels. You qualify if your income falls within the property's income limits.
How LIHTC Rent Is Calculated
Unlike Section 8, LIHTC rent is not based on your personal income. It is a fixed, discounted rate tied to a percentage of the Area Median Income for the area, adjusted for unit size. The most common rent targets are set at 50% AMI or 60% AMI.
For example, if the 60% AMI rent for a two-bedroom in your area is $1,100, every qualifying tenant in that unit pays $1,100, regardless of whether they earn $18,000 or $38,000 per year. Your rent does not automatically decrease if your income drops.
This flat-rent structure means LIHTC apartments are more affordable than market-rate housing, but they are not as deeply subsidized as a Section 8 unit. Tenants at the lower end of the income range often pay a higher share of their income at a LIHTC property than they would with a voucher.
LIHTC Income Limits
To qualify for a LIHTC unit, your income must fall within the limits set for that specific property. The most common thresholds are 50% AMI and 60% AMI, though some properties use income averaging and allow units designated up to 80% AMI as long as the average across all units stays at or below 60% AMI.
| LIHTC Set-Aside Type | Maximum Income Limit | Notes |
|---|
| 20/50 set-aside | 50% AMI | At least 20% of units at this level |
| 40/60 set-aside | 60% AMI | At least 40% of units at this level |
| Income Averaging | Average of 60% AMI | Some units can go up to 80% AMI |
HUD updated the 2025 income limits in May 2025. On average, limits rose about 6.2% nationally, with many areas seeing increases above 8%.
The 140% Rule
If your income rises after you move into a LIHTC apartment, you are protected by what is called the 140% Rule. You are not considered over-income until your household income exceeds 140% of the applicable income limit. Even if you exceed that threshold, you typically cannot be evicted for it. In most cases you simply continue paying the same capped rent.
This income protection is a meaningful advantage over some other programs, though it means LIHTC units do not always go to the households with the greatest financial need.
Applying for a LIHTC Apartment
There is no central waitlist for LIHTC housing. Each property manages its own application process and waitlist. To find LIHTC apartments:
- Use the HUD Resource Locator at resources.hud.gov to search for affordable properties near you.
- Contact your state housing finance agency, which often maintains a searchable database of LIHTC properties.
- Check AffordableHousingOnline.com or similar directories.
- Call or visit properties directly to ask about availability and waitlist status.
Once you identify a property with openings, the process resembles a standard rental application with additional income documentation.
Side-by-Side Comparison
| Feature | Section 8 Voucher | LIHTC Apartment |
|---|
| How it works | Portable subsidy you bring to a landlord | Affordable unit in a specific building |
| Rent formula | ~30% of your adjusted income | Fixed rate based on AMI percentage |
| Portability | Yes, generally portable | No, tied to the specific unit |
| Income limit to qualify | Typically 50% AMI or below | Typically 50% to 60% AMI |
| What happens if income drops | Rent share decreases automatically | Rent stays the same |
| What happens if income rises | Rent share increases | Protected by 140% Rule |
| How to get it | Apply to local PHA, join waitlist | Apply directly to the property |
| Waitlist reality | Often years-long, many lists closed | Varies by property; often shorter |
| Who administers it | Local Public Housing Agency | Property management company |
| Can you combine them? | Yes | Yes |
Can You Use Both at the Same Time?
Yes. Section 8 vouchers can be used at LIHTC properties. Under federal law, LIHTC properties cannot reject you simply because you hold a voucher (this is the "source of income" protection at the federal level, with additional state-level protections in many states).
When you combine a voucher with a LIHTC unit, you often get the lowest out-of-pocket rent possible. The voucher covers the gap between your 30% income share and the capped LIHTC rent. This stacking approach is worth pursuing if you hold a voucher and find a LIHTC property with availability.
How to Apply for Section 8 Step by Step
- Find your local Public Housing Agency at hud.gov/program_offices/public_indian_housing/pha/contacts.
- Check whether the waitlist is open. Many are closed. Sign up for alerts if possible.
- Submit an application when the waitlist opens. Gather proof of identity, Social Security cards for all household members, income documents (pay stubs, benefit letters), and current housing information.
- Confirm your spot on the list. PHAs may require periodic check-ins to keep your name active. Missing a check-in can remove you from the list.
- Respond promptly when your name is called. You will have a limited window to complete income verification and accept the voucher.
- Search for housing. You typically have 60 to 120 days to find a qualifying unit and submit a Request for Tenancy Approval.
- The PHA inspects the unit to confirm it meets Housing Quality Standards.
- Once approved, sign the lease and begin paying your tenant share.
How to Apply for a LIHTC Apartment Step by Step
- Search for LIHTC properties using the HUD Resource Locator, your state housing finance agency website, or AffordableHousingOnline.com.
- Contact properties directly to ask about availability and whether their waitlist is open.
- Request an application from the property manager.
- Gather documentation: government-issued ID, proof of income for all household members (pay stubs, Social Security award letters, tax returns), and rental history.
- Complete the application and submit all required documents.
- If the property has no immediate openings, ask to be placed on the waitlist and confirm how often to check in.
- Once an opening comes up, complete a formal income certification. The property manager will verify your income against the applicable AMI limits.
- Sign the lease and move in.
Which Option Is Better for You?
The honest answer is that both programs have real trade-offs and neither is universally better.
Section 8 vouchers work better if you need deep, income-responsive subsidies. If your income fluctuates or is very low (below 30% AMI), a voucher will keep your rent at an affordable share of whatever you earn. The portability also matters if you need to move for work, family, or safety.
LIHTC apartments are often easier to access right now because property-level waitlists are typically shorter than PHA voucher waitlists. If you need stable, below-market housing quickly and can afford the fixed rent, a LIHTC unit may be the faster path. The 140% Rule also gives you some room to earn more without immediately facing higher rent.
If you are unsure what you qualify for, run a free screening at benefitsusa.org/screener. The screener checks multiple programs at once and shows you what assistance you may be eligible for based on your income, household size, and location.
Frequently Asked Questions
What is the difference between Section 8 and LIHTC?
Section 8 is a rental voucher you take to a private landlord. Your rent adjusts based on your income, staying at roughly 30% of what you earn. LIHTC apartments are specific buildings where a developer has agreed to charge below-market rents, fixed at a percentage of the local Area Median Income. One is a portable subsidy; the other is a unit with capped rent.
Can I use a Section 8 voucher at a LIHTC apartment?
Yes. LIHTC properties cannot reject applicants solely because they hold a voucher. Using both together usually results in the lowest possible out-of-pocket rent because the voucher adjusts your personal share while you live in a below-market-rate unit.
Who qualifies for LIHTC housing?
Most LIHTC properties require your household income to be at or below 60% of the Area Median Income for your area, though some units are set at 50% AMI. Limits vary by location and are updated annually by HUD. Contact individual properties to confirm their specific income thresholds.
How long is the Section 8 waitlist?
It depends entirely on your local PHA. Some waiting lists are two to five years or longer. Others are closed indefinitely. Apply to every open waitlist in your region and check back regularly, since lists occasionally reopen.
What happens to LIHTC rent if my income goes up?
LIHTC rent is fixed, not tied to your personal income. If your income rises after move-in, you continue paying the same amount until you exceed 140% of the property's applicable income limit. Even then, you generally cannot be evicted solely for being over-income in most circumstances.
What happens to Section 8 rent if I lose my job?
If your income drops, you report the change to your PHA. They will recalculate your tenant share, and your rent portion will decrease to reflect 30% of your new, lower income. This income-responsive feature is one of the strongest protections a Section 8 voucher offers.
Is there a national waitlist for LIHTC apartments?
No. Each LIHTC property manages its own waitlist independently. There is no central state or federal list. You need to contact properties one by one to check availability and apply.
How do I find LIHTC apartments near me?
Use the HUD Resource Locator at resources.hud.gov, your state housing finance agency's website, or databases like AffordableHousingOnline.com. You can also contact your local housing authority, which often has information on nearby affordable properties.
Can elderly or disabled people get priority for these programs?
Many PHAs give preferences to elderly and disabled applicants for Section 8 vouchers. Individual LIHTC properties may also designate units for elderly or disabled tenants, and some properties are built specifically for those populations. Ask the PHA and individual properties about any preference categories that may apply to your household.
Where do I start if I need affordable housing now?
Start by checking what you qualify for. Run a free benefits screening at benefitsusa.org/screener to see which housing and assistance programs match your situation. At the same time, contact your local PHA to get on any open Section 8 waitlists and search LIHTC properties in your area for immediate availability.
