Low Income Housing & Affordable Housing - What's the Difference? (2024)

Alike, yet with subtle differences, low income and affordable housing are not quite the same. Finding either can be difficult and knowing the difference is a good place to start. The similarities between the two are subtle and both are based on median income as well as other criteria for your particular locale.

As with any contractual agreement, verification of income, and other pertinent information will be necessary when applying for the lease of an apartment. This is true whether it is a low-income, affordable apartment, or normal property rental. This information is used to determine your eligibility for low-income housing through the Department of Housing and Urban Development (HUD). In the following, we will look at both types of housing so that you can determine which suits you best and is most affordable for your situation.

Low Income Housing

Two types of housing are considered government subsidized and low-income housing. These programs are Public and Section 8 housing and both programs are overseen by HUD and subject to their rules and conditions for apartment rentals. Public housing is managed by local housing authorities and is available to renters with low income that meet the criteria of the program. Section 8 housing gives low-income families a voucher that makes up the difference in what they can afford and the actual cost of the apartments for rent that are available to them.

Both of these low-income housing options are income-based according to HUD standards. They will vary from county to county, and state to state. You can start here to check the availability of rental assistance for low-income housing in your area of the country.

Due to the demand for affordable housing the Low-Income Housing Tax Credit program (LIHTC), was enacted by HUD and has been available since 1997. The measure offers incentives to builders who build, revamp, and rent a percentage of their apartments to those who are eligible for low-income housing. Other programs have helped build and rehabilitate property across the country with block grants. They are dispersed differently in every state and county, so you will need to find your local Public Housing office to apply for low-income housing.

Affordable Housing

Many apartments and homes advertised in rental listingsas affordable housing are usually for renters with higher incomes and are different from low-income housing. Housing for low-income renters is deemed, low, very low, and extremely low by HUD. These limits are at 30, 50, and 80 percent of median income for the area in which you live. If you fit this criterion, your income for apartments advertised as 'affordable housing' will not be available to you. However, they may have a number of units in a development that will meet the low-income criteria of HUD.

The Differences

The backlog of public and Section 8 housing means that they generally do not need to advertise their availability because of lengthy waiting lists. Apartments that are listed as 'affordable housing' in your city may not meet the criteria for low-income housing under HUD. However, you may find rental listings in your area of the country that indicates eligibility for help with apartment rent that may include apartment rentals for families or seniors.

Most low-income housing is rented through public housing authorities, although in many areas that may be a private property manager. Sometimes, the only way to know is to ask when you find apartments for rent that are listed as 'affordable housing'.

Now That you Know, Find an Apartment

One of the above programs may help you find a rental apartment that you can afford that may or may not be in a low-income housing development and helps to fulfill your housing needs even if you cannot afford the normally charged rentals in the area in which you live. Knowing what to look for in apartment listings can help you in your search for low-income and affordable housing.

where you will find local information for rental assistance, as well as information on homeownership and home buying assistance for veterans, seniors, and those with lower and limited incomes.