Housing where what you pay in rent depends on what you earn
Most rental housing charges a fixed monthly amount regardless of what a tenant earns. Income-based housing works differently — the monthly rent is calculated as a percentage of the household's actual income, so someone earning less pays less. The federal standard used by most programs is 30 percent of adjusted monthly income, though the exact calculation varies by program.
This page covers the government and nonprofit programs that use this model — who they serve, how rent is calculated, and how to access them. It is distinct from the broader question of how to find any affordable housing, or how to get emergency rent help. This page is specifically about housing where the rent itself is income-tied rather than market-rate.
Section 8 Housing Choice Vouchers: the largest income-based rental program
The Section 8 Housing Choice Voucher program is the federal government's primary income-based rental assistance program, serving millions of low-income households. A voucher does not tie you to a specific building — it moves with you to any qualifying unit where the landlord agrees to participate and the rent falls within local limits set by HUD. The household pays approximately 30 percent of adjusted monthly income toward rent, and the voucher covers the balance directly to the landlord.
Income eligibility is generally set at or below 50 percent of the area median income, though most assistance goes to households at or below 30 percent of AMI. Each Public Housing Authority sets its own local payment standards, waitlist policies, and application procedures. Most areas have waitlists, and some have closed them to new applicants temporarily due to high demand.
Certain circumstances can move an applicant up an existing waitlist — documented disability, homelessness, domestic violence, or paying more than half of income toward rent. If you are applying, document your situation fully and ask the housing authority whether any preference categories apply to you. How the program works, priority situations, and a state-by-state directory of housing authorities are on the Section 8 housing page.
Project-based Section 8: income-tied rent tied to specific buildings
Separate from the portable voucher program is Project-Based Section 8 rental assistance, where the subsidy is attached to a specific unit rather than moving with the tenant. Owners of qualifying apartment buildings receive assistance payments from HUD, and eligible tenants in those units pay approximately 30 percent of their income toward rent. If a tenant moves out, the subsidy stays with the unit and passes to the next qualifying tenant.
These properties have their own waitlists and application processes — you apply directly to the property rather than through a housing authority. Because the pool of applicants is building-specific rather than area-wide, some project-based properties have shorter waits than the general voucher program. Availability varies significantly by location. Searching https://www.affordablehousing.com/ by location and filtering for project-based properties is one way to find what is available in a given area.
Public housing: income-based rent through local housing authorities
Public housing is government-owned rental housing operated by local Public Housing Authorities, where rent is set at 30 percent of adjusted household income. Unlike the voucher program, the housing authority itself is the landlord — you apply to live in specific public housing developments rather than using a voucher to find a private-market unit.
Public housing serves very low-income families, seniors, and people with disabilities. Wait times vary dramatically by city. Large urban housing authorities frequently have multi-year waits, while smaller authorities in less competitive markets may have units available more quickly. Applications are made through the local housing authority, the same agencies that administer Section 8 vouchers.
Tenant-Based Rental Assistance: an income-based option through the HOME program
The HOME Investment Partnerships Program, funded by HUD and administered by state and local governments, includes a Tenant-Based Rental Assistance component that operates similarly to Section 8. Eligible households receive rental assistance that covers the gap between what they can afford and actual rent costs. Like Section 8, TBRA is portable — it applies to any qualifying unit, not a specific building.
TBRA is available in communities that receive HOME funding and choose to use it for tenant-based assistance, so availability varies by location. It is worth asking your local community development office or housing authority whether a TBRA program exists in your county. Full details on how TBRA works and how to apply are on the Tenant-Based Rental Assistance page.
USDA rural housing: income-based rental programs outside cities
For people living in rural areas or small towns, the USDA's Rural Housing Service operates affordable rental housing through its Section 515 Multifamily Housing program. These are privately owned properties that received USDA financing in exchange for maintaining affordable, income-based rents for low- and very low-income tenants. Rent is set at approximately 30 percent of adjusted income for eligible households, with USDA rental assistance covering the balance for qualifying tenants.
Section 515 properties exist in every state and in the majority of rural counties. Tenants apply directly to individual properties. The program serves a significant number of elderly and disabled tenants, as well as families. The USDA rural rental assistance page covers how to find properties and how the application process works.
Veterans: HUD-VASH combines income-based vouchers with VA support
Veterans experiencing homelessness have access to HUD-VASH — a program that combines a Section 8 Housing Choice Voucher with case management and clinical services from the VA. The voucher functions the same way as standard Section 8, with rent set at approximately 30 percent of income. The difference is that veterans are referred through their local VA medical center, and case management continues after housing is secured.
To access HUD-VASH, a veteran must be referred through a VA medical center — it is not a direct application program. Veterans or their family members can start by contacting a VA medical center or the National Call Center for Homeless Veterans at 1-877-424-3838. A broader look at income-based and other housing programs for veterans is on the veterans housing and rental assistance page.
HOPWA: income-based housing for people living with HIV/AIDS
Housing Opportunities for Persons with AIDS, known as HOPWA, is the only federal program dedicated specifically to the housing needs of low-income people living with HIV/AIDS and their families. HUD funds the program through grants to states, cities, and nonprofits, which then provide rental assistance, transitional housing, and short-term rent payments to eligible households. Rental assistance under HOPWA is income-based, with participants generally paying 30 percent of adjusted income.
HOPWA is not a direct application program — assistance is accessed through local grantee organizations, which vary by location. Your local HIV/AIDS service organization or community health center is typically the right starting point. Program information and grantee contacts are at https://www.hud.gov/hud-partners/community-hopwa.
Nonprofit and charity income-based housing
Several national nonprofits operate affordable housing where rent is based on what tenants earn, independently of the government voucher system. These organizations own and manage their own properties, with eligibility criteria and application processes set at the property level.
Catholic Charities offices in many cities operate permanent supportive housing and transitional housing programs where rent is income-based. Many locations are also HUD-certified housing counseling agencies, meaning a housing counselor there can give you free, independent guidance on which income-based programs you qualify for — not just Catholic Charities' own programs. The Catholic Charities assistance page covers locations and how to get help.
Family Promise, which operates through a national network of faith communities, helps families with children access affordable housing, including income-based units, through case management and housing placement assistance. More on how their program works is on the Family Promise housing assistance page.
Mercy Housing operates affordable, income-based housing communities across the country for low-income families, people with disabilities, and seniors. Many of their properties include on-site services — case management, health programs, transportation — alongside income-based rent. How their program works and which states have communities is on the Mercy Housing programs page.
Volunteers of America operates income-based housing for veterans, seniors, people with disabilities, and others with very low incomes. Their tens of thousands of units across the country make them one of the larger nonprofit providers of this type of housing. The Volunteers of America housing page covers how to find a location.
The YWCA operates income-based housing specifically for women, single mothers, and their children in many cities. Some locations offer units with little or no rent for women with no income. How their housing programs work is on the YWCA assistance programs page.
When income is zero: rent-free housing programs
For people with no income at all — not a low income, but genuinely no income — some programs cover housing costs entirely or ask for a nominal - small dollar fee. These are distinct from income-based programs, which calculate a payment even when income is very low. Who qualifies for this and how to access it is covered separately on the guide to rent-free housing.
How income limits and rent calculations actually work
Most federal income-based housing programs use Area Median Income — AMI — as the benchmark for eligibility. AMI is calculated by HUD each year for every metropolitan area and rural county in the country, and it changes annually. Eligibility cutoffs are typically expressed as a percentage of AMI: very low-income is generally below 50 percent, and extremely low-income is below 30 percent. The actual dollar amounts vary significantly by location — as an example, the same percentage of AMI represents a much higher income in San Francisco than in rural Mississippi.
The 30 percent of income standard used by most programs applies to adjusted income, not gross income. Adjustments are made for things like dependents, medical expenses, and disability-related costs, which means the actual payment can be lower than 30 percent of gross income for households with those expenses. Ask the housing authority or program you are applying to how they calculate adjusted income, since it affects what you will owe monthly.
HUD publishes current income limits by year and area at https://www.huduser.gov/portal/datasets/il.html. These are the official figures programs use, updated annually.
A note on scams
Disclaimer: Program eligibility requirements, income limits, and availability vary by location and change over time. Contact programs directly to confirm current requirements before making any housing decisions. This page is for informational purposes only.
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