Section 8, public housing, and LIHTC apartments: the three kinds of affordable housing, explained

Finding a safe, affordable place to live can feel overwhelming, especially when rents keep rising. The good news is that the U.S. government supports several programs designed to help people with lower incomes afford housing. Three programs come up most often: Section 8 (also called the Housing Choice Voucher program), public housing, and LIHTC apartments. Each one works differently. Understanding the basics can help you take the right steps.

Section 8 — The Housing Choice Voucher Program

Section 8 is run by your local Public Housing Authority, or PHA. It gives eligible renters a voucher — think of it as a subsidy — that helps pay part of their rent each month. You find your own apartment in the private market. The voucher covers a portion of the rent, and you pay the rest, usually based on your income.

The big advantage of Section 8 is flexibility. You can choose where you live, as long as the landlord accepts vouchers and the unit meets basic safety standards. The program is federally funded through the U.S. Department of Housing and Urban Development, known as HUD.

The downside: waitlists can be very long. Some areas have waitlists that are closed entirely. Income limits and other rules vary by location. To find out if your area's list is open, contact your local PHA or visit HUD.gov.

Public Housing — Government-Owned Units

Public housing is different from Section 8. Instead of a voucher you take to a private landlord, public housing means you rent a unit that is owned and managed by your local PHA. These are apartment buildings, townhomes, or small houses run by the government.

Rent in public housing is typically based on a percentage of your household income, so it adjusts as your financial situation changes. You apply directly through your local PHA. Like Section 8, income limits apply, and waitlists may be long or closed depending on where you live.

Public housing communities vary widely. Some are well-maintained with good services nearby. Others may have challenges. It is worth visiting or researching a property before accepting a unit if you have the option.

LIHTC Apartments — Low-Income Housing Tax Credits

LIHTC stands for Low-Income Housing Tax Credit. This program works very differently from Section 8 and public housing. Instead of the government giving you a voucher or renting you a unit, the government gives tax credits to private developers who build or fix up affordable apartments. Those developers then rent the units at below-market rates to income-qualified tenants.

You apply directly to the LIHTC apartment complex — not through a PHA. Each building sets its own application process, income limits, and availability. Because these are privately managed, the experience can vary from one building to another.

LIHTC apartments may be easier to find in some areas because they are spread throughout many communities, including suburban and rural areas. Look for them by searching online for "affordable apartments" or "income-restricted apartments" in your city, or ask a local housing counselor for help.

Which One Should You Apply For?

Here is the honest answer: apply for all three if you can. Do not wait for one before trying others. Here are some steps to get started:

• Contact your local PHA to ask about Section 8 vouchers and public housing. Find your PHA at HUD.gov.
• Search for LIHTC apartments in your area and apply directly to buildings that interest you.
• Talk to a HUD-approved housing counselor — many offer free help. Find one at HUD.gov/housing/counseling.
• Keep copies of every application you submit and note the date.
• Update your contact information with each program if you move or change your phone number.

Affordable housing programs are not perfect, and the process takes patience. But getting your name on lists now — even if the wait feels discouraging — is one of the most important steps you can take for your future housing stability.