Housing Choice Voucher

A housing choice voucher, widely called Section 8, is a federal subsidy that pays part of a low-income household's rent directly to a private landlord. The tenant generally pays about 30% of income toward rent and the local housing authority pays the rest.

Vouchers change how the 3x rent rule should be applied. If a tenant's share of a $1,500 rent is $400, measuring income against the full $1,500 would reject nearly every voucher holder.

Several states have closed that gap. California requires any income standard to be based on the portion of rent the tenant pays. Washington requires the voucher amount to be subtracted from the rent before the income test is run. Under either rule, 3 times a $400 share is $1,200 a month.