From renting to owning: Family Self-Sufficiency and Section 8 homeownership

If you receive a Section 8 housing voucher — also called a Housing Choice Voucher — you may already know it helps cover rent. But there are two lesser-known programs that can help you do even more: Family Self-Sufficiency (FSS) and the Section 8 Homeownership Option.

Let's break down what each one is and how they might work for you.

What is Family Self-Sufficiency (FSS)?

FSS is a voluntary program run by local Public Housing Authorities, or PHAs. If you enroll and your income goes up, part of that extra money gets set aside in a special savings account in your name. You do not have to put money in yourself. The PHA builds it up for you as your earnings grow.

Here is a simple example of the idea: When your income rises, your rent contribution usually rises too. Under FSS, the difference between what you would have paid and what you used to pay gets credited to your escrow account. Over time, that can add up to a meaningful amount of savings.

You can use those savings when you complete the program. Many families use the money for a down payment on a home, to pay off debt, to go back to school, or to cover other big goals.

FSS programs typically run for about five years. During that time, you work with a case manager to set goals — things like getting a better job, finishing a degree, or improving your credit score. You do not have to do it alone.

What is the Section 8 Homeownership Option?

The Section 8 Homeownership Option lets some voucher holders use their monthly housing assistance to help pay a mortgage instead of rent. Instead of your voucher helping a landlord, it may help you build equity in a home you own.

This option is not available everywhere. Your local PHA has to offer it, and not all of them do. Requirements also vary by location, but they often include things like:

• Meeting a minimum income level (amounts vary by PHA)
• Being employed or having a disability or being elderly
• Being a first-time homebuyer, or not having owned a home recently
• Completing a homebuyer education course
• Having good standing with your current voucher

If your PHA does offer this option, you would still need to find a home that meets HUD's housing quality standards and falls within your voucher's payment limits.

How FSS and Homeownership Can Work Together

These two programs can be a powerful combination. You might enroll in FSS first, work on your goals, and build up savings in your escrow account. Then, when you are ready, you could use those savings as part of a down payment and apply for the Homeownership Option — if your PHA offers it.

This is not a quick path. It takes time, effort, and planning. But for families who want to move from renting to owning, it is one of the few routes that does not require starting with a lot of money.

A few things to keep in mind

• Not every PHA offers FSS or the Homeownership Option. Availability depends on where you live.
• Waitlists may exist for FSS enrollment. Ask your PHA what is currently open.
• The rules, income limits, and savings amounts all vary by location and can change year to year.
• You will likely need to work on your credit score as part of any path to homeownership. A score that qualifies you for a mortgage takes time to build.

This is worth asking about

Many people with vouchers never hear about these programs. That means a lot of families miss out on savings they could have earned. Even if you are not ready to buy a home right now, asking your PHA about FSS enrollment could start building a cushion for your future.

You do not have to have it all figured out before you ask. The first step is just making a phone call or sending an email to your local PHA. You can also visit HUD.gov to learn more and find contact information for your area's housing authority.