No, they are not the same, though the terms get mixed up constantly

Low income housing is any housing where the rent is set below market rate — usually owned by nonprofits, local housing authorities, or developers who received tax credits. Section 8 is a federal voucher program that lets you rent from any landlord willing to take it, and the government pays part of your rent directly to them. The difference matters because the rules, wait times, and what you actually pay are completely different.

Low income housing is a building or complex. Section 8 is a voucher you carry with you to any rental property. You might live in low income housing without Section 8, or use Section 8 to rent a private apartment. Some people do both — they use Section 8 to live in a low income housing complex — but that is a choice, not a requirement.

Key Takeaways

  • Low income housing is a physical building owned by a nonprofit or housing authority where rent is kept below market rate; Section 8 is a federal voucher you use at any landlord who accepts it.
  • Section 8 wait lists are typically years long in most cities, while low income housing wait lists vary widely depending on the building and your income level.
  • In low income housing, your rent is usually a percentage of your income (often 30 percent); with Section 8, you pay a percentage of your income and the voucher covers the rest up to a limit.
  • Low income housing has income limits that vary by building; Section 8 has a single federal income limit that applies everywhere, though it is adjusted by area.

How low income housing works

Low income housing is owned and operated by a housing authority, nonprofit organization, or private developer who received tax incentives to keep rents affordable. You find a specific building or complex, get on their wait list, and when a unit opens, you move in. The rent you pay is usually set at 30 percent of your income, though some buildings charge a flat rate that is still below what the market would bear.

Each building has its own income limits. A complex might accept households making up to 60 percent of the area median income, while another accepts up to 80 percent. Once you are in, your rent typically stays affordable even if your income goes up, though some buildings will raise your rent if you earn significantly more. You do not need a voucher to live there — the affordability is built into the building itself.

Wait lists for low income housing vary dramatically. Some buildings have no wait at all because demand is low in that area. Others have waits of several months to a few years. The wait depends on how many units are available, how many people want them, and whether the building prioritizes certain groups (like people experiencing homelessness or families with children).

How Section 8 works

Section 8 is a federal voucher program run by the U.S. Department of Housing and Urban Development. When you receive a Section 8 voucher, you can rent from almost any private landlord who is willing to accept it. The landlord agrees to take Section 8 tenants, the government inspects the unit to make sure it meets housing standards, and then the voucher pays a portion of the rent directly to the landlord each month.

You pay your share of the rent — usually 30 percent of your income — and Section 8 covers the rest, up to a maximum amount called the payment standard. The payment standard varies by area and bedroom size. If the rent is higher than the payment standard, you pay the difference out of pocket. If the rent is lower, you pay less.

Section 8 wait lists are notoriously long. Most housing authorities have closed their lists to new applicants because the wait is already years long. Some areas have waits of five to ten years or longer. A few housing authorities open their lists periodically for a few weeks, and hundreds or thousands of people explore in that window. Once you get a voucher, you have a limited time (usually 120 days) to find a landlord and move in, or you lose it.

Income limits: where they differ most

Low income housing income limits are set by each building or complex. A nonprofit might set the limit at 50 percent of area median income for one building and 80 percent for another. You need to check the specific building's rules. Some buildings also have a minimum income requirement — they want to make sure you can afford the rent even at 30 percent of your income.

Section 8 has a single federal income limit: 50 percent of area median income for your county. That limit is the same whether you are explore in rural Montana or downtown San Francisco, though the actual dollar amount changes because median income is different in each area. If you earn more than 50 percent of area median income, you do not meet the federal limit, though some housing authorities have local rules that are slightly different.

Once you are in Section 8, there is usually a grace period before your income rising causes you to lose the voucher. If your income goes above the limit, you typically have a year or two before you have to leave the program. Low income housing rules vary — some buildings let you stay indefinitely, others will raise your rent significantly, and some will ask you to move out.

What you actually pay each month

In low income housing, your rent is usually 30 percent of your gross monthly income. If you make $1,500 a month, you pay $450. If you make $2,000, you pay $600. Some buildings charge a flat minimum rent instead (often $50 to $150), so even if your income is very low, you still pay that amount. A few buildings charge a percentage of income up to a cap, so your rent does not keep rising as your income increases.

With Section 8, you also pay 30 percent of your income, but the voucher covers the rest up to the payment standard. If the payment standard for a two-bedroom in your area is $1,200, and the rent is $1,200, and you make $1,500 a month, you pay $450 and Section 8 pays $750. If the rent is $1,400, you pay $450 and Section 8 pays $750, but you owe the landlord the extra $200 out of pocket. If the rent is $1,000, you pay $300 and Section 8 pays $700.

Wait times and how to get on lists

Low income housing wait lists are managed by each building or complex. You contact the building directly, ask to be added to their list, and they tell you how long the wait is. Some buildings let you explore online, others require you to come in person. There is no central database — you have to find buildings you are interested in and explore to each one separately. Some housing authorities maintain lists of low income housing in their area, which can save you time.

Section 8 wait lists are managed by your local housing authority. You contact them, ask if they are accepting applications, and if they are, you explore. Many housing authorities have closed lists and will not tell you when they will reopen. A few have online portals where you can check the status. The best way to find out is to call your local housing authority directly and ask when they last opened the list and whether they have plans to open again.

Can you use both at the same time

Yes. You can use a Section 8 voucher to rent a unit in a low income housing complex. The complex still gets the benefit of affordable rents, and you get the benefit of the voucher covering part of your cost. This is common in areas where low income housing is plentiful and Section 8 vouchers are easier to get than standalone apartments.

You cannot, however, use two Section 8 vouchers at once, and you cannot receive rental information from two different programs simultaneously. If you are in an emergency rental information program, you cannot also use Section 8 for the same rent. The programs are designed to help one household at a time, not to stack benefits.

Frequently Asked Questions

Is Section 8 cheaper than low income housing?

Not necessarily. Both usually cost 30 percent of your income. The difference is flexibility: Section 8 lets you choose any landlord, while low income housing ties you to a specific building. If you earn very little, low income housing might be cheaper because some buildings have minimum rents lower than Section 8 minimums in your area. If you earn more, Section 8 might be better because you can find cheaper rentals and keep the savings.

What if I am on a Section 8 wait list and a low income housing unit opens up?

You can move into the low income housing unit while you wait for Section 8. There is no rule against it. If you later get a Section 8 voucher, you can stay in the low income housing unit and use the voucher there, or move to a different rental property. Being in low income housing does not disqualify you from Section 8.

Do I need to own a home to get low income housing or Section 8?

No. Both programs are for renters. You do not need to own anything. You do need a valid ID, proof of income, and usually a background check. Some programs have restrictions based on criminal history or eviction records, but home ownership is not a factor.

Can a landlord refuse to rent to me if I have a Section 8 voucher?

In most states, no — it is illegal to discriminate based on source of income. However, landlords can refuse for other reasons: bad credit, eviction history, income too low, or straightforward because they do not want to deal with the paperwork. Low income housing buildings cannot refuse you based on income because that is the whole point of the program, but they can refuse for criminal history or other reasons.

What happens if I move while I am in low income housing?

You lose your unit and your name goes back on the wait list if you want to return. Low income housing is tied to the building, not to you as a person. With Section 8, you keep the voucher and can move to a new rental property as long as you find a landlord who accepts it and the rent is within the payment standard.