A new HUD Office of Policy Development and Research study found that as of 2020, families with children no longer represented the most common type of tenant-based rental assistance - Housing Choice Voucher (HCV) - households. Elderly- or disabled-headed households are now the most common HCV household structure.
HUD began providing tenant-based rental assistance following the passage of the Housing and Community Development Act of 1974. For the first time, low-income households were able to use their assistance to seek rental housing in the private market. By the 1970s, observers realized that the spatial concentration of poverty was negatively impacting those the program sought to help. The current HCV program tries to have these assisted households live in higher-opportunity neighborhoods rather than areas of concentrated poverty, where many public housing developments were and still are located.
A HUD report comparing nationwide trends in 2010 to those in the top 50 MSAs in 2000 found that although the HCV program had a small share of affordable rental housing, the share of households living in high-poverty areas was increasing. It also found that the share of HCV households living in HCV-dense census tracts had increased during 2000-2010. Both reports found that participant choice alone was not enough to achieve spatial poverty de-concentration.
The just-released third HCV location report covering 2010 and 2020 found that:
(1) The number of HCV households with an elderly or disabled head of household exceeded the number of HCV households with children. During 2010-2020, the number of elderly heads of households increased by nearly 10% and the number of disabled heads of households decreased slightly. Non-Hispanic Black heads of households continue to represent the largest - and growing - racial/ethnic group of HCV households.
(3) A large share of HCV households still live in high-poverty neighborhoods. Nationwide, 44% of tenant-based voucher (TBV) households still lived in high-poverty census tracts in 2020, including 7% living in areas of extreme poverty
(4) There are significant racial and ethnic disparities among voucher households regarding neighborhood poverty rates: Black (52.3%) and Hispanic (47.8%) HCV households were more likely to live in neighborhoods with higher concentrations of poverty compared to their white peers (30.7%). Black and Hispanic HCV households were also twice as likely to live in neighborhoods with higher concentrations of other voucher holders, where more than 10% of units were occupied by voucher holders, compared to white HCV households.
Read the October 29, 2024 HUD Report.
Read the September 16, 2024 National Low Income Housing Coalition article.
