Section 8 (HCV): Do government funds ever run out? And other questions.

[Spencer Manning]

Hi everybody! I have been listening to all the BP podcasts I can find on section 8 housing vouchers. They all talk about the pros of section 8 but not many get into the cons. I talked to a woman on the voucher waiting list recently about her experience with the process and she said most people that get approved for vouchers never move from that area, so the local PHA ends up closing their HCV programs because there aren't any more HCV qualified homes in that area. I'm wondering, is this not a major problem for landlords if no further applicants are getting approved for vouchers? Why haven't any of the BP podcasts mentioned this?

Another question that I haven't yet heard the answer to: Do local governments ever run out of HCV funds? Most of the podcast episodes I've listened to speak of these government funds as if they're unlimited. Is this true? If not, wouldn't that mean the local area would no longer have eligible voucher holders looking for qualified homes once they run out of funds? Again, seems like another major problem for landlords. 

Last questions, can't a voucher holder apply to any home of any size in their approved area? What would make them come to a landlord who wants to focus on voucher holders? As many of the BP podcasts have mentioned, it's not the house that gets qualified for section 8, it's the tenants. If I were a voucher holding tenant, I wouldn't limit myself to only looking for homes that say "Section 8 welcome" on their applications. I would apply to all of my dream homes and trust that the landlords can't refuse me because I would be protected under the Fair Housing Act. 

These are questions that have stayed in my mind through every episode I've listened to. Any help on these questions would be very appreciated. Thank you in advance!

[JD Martin]

Quote from @Spencer Manning:

Hi everybody! I have been listening to all the BP podcasts I can find on section 8 housing vouchers. They all talk about the pros of section 8 but not many get into the cons. I talked to a woman on the voucher waiting list recently about her experience with the process and she said most people that get approved for vouchers never move from that area, so the local PHA ends up closing their HCV programs because there aren't any more HCV qualified homes in that area. I'm wondering, is this not a major problem for landlords if no further applicants are getting approved for vouchers? Why haven't any of the BP podcasts mentioned this?

Another question that I haven't yet heard the answer to: Do local governments ever run out of HCV funds? Most of the podcast episodes I've listened to speak of these government funds as if they're unlimited. Is this true? If not, wouldn't that mean the local area would no longer have eligible voucher holders looking for qualified homes once they run out of funds? Again, seems like another major problem for landlords. 

Last questions, can't a voucher holder apply to any home of any size in their approved area? What would make them come to a landlord who wants to focus on voucher holders? As many of the BP podcasts have mentioned, it's not the house that gets qualified for section 8, it's the tenants. If I were a voucher holding tenant, I wouldn't limit myself to only looking for homes that say "Section 8 welcome" on their applications. I would apply to all of my dream homes and trust that the landlords can't refuse me because I would be protected under the Fair Housing Act. 

These are questions that have stayed in my mind through every episode I've listened to. Any help on these questions would be very appreciated. Thank you in advance!

 Yes, money is limited and appropriated by Congress. If funds for the program are reduced or eliminated it would create a national housing crisis, so generally it just gets carried at about the same level each year.

Yes, local governments run out of funds which is why they close their lists or the wait time is very long. 

States and some cities get broad latitude on administration of the program. Not every state or city mandates that any landlord has to accept Section 8, because the landlord has to not only subject their property to Section 8 inspections, rules and regulations, they also often have to separately arrange for the tenant to pay the non-covered part of the rent and can face difficulty evicting just based on that. I don't have to participate in the program in my state, and I don't participate.