How to Get the Government to Pay for Housing

Government housing assistance is not a single program but a collection of initiatives spread across several federal agencies, each targeting different needs and populations. The U.S. Department of Housing and Urban Development runs the largest programs, but the Department of Agriculture, Department of Veterans Affairs, and Department of Energy all fund housing-related aid. Here is how each major program works and who qualifies.

Section 8 Housing Choice Vouchers

The Section 8 voucher program is the cornerstone of federal rental assistance. It serves roughly 2.3 million households nationwide. Voucher holders rent units on the private market, and the local PHA pays the landlord the difference between 30 percent of the tenant's adjusted gross income and the area's fair market rent. For a family earning $15,000 per year in Huntsville, this means the family pays approximately $375 per month while the PHA covers the rest up to the payment standard.

Eligibility requires household income below 50 percent of the Area Median Income. PHAs must allocate 75 percent of new vouchers to households at or below 30 percent of AMI, so the program heavily prioritizes the poorest applicants.

Public Housing

Public housing provides government-owned rental units managed by local PHAs. Tenants pay 30 percent of their adjusted gross income as rent, and there is no private landlord involved. Units range from single-family scattered-site homes to apartment complexes. The program serves approximately 930,000 households across the country. Income limits for public housing are generally set at 80 percent of AMI, though most new admissions go to applicants below 50 percent.

LIHEAP: Help With Utility Costs

The Low Income Home Energy Assistance Program helps families pay heating and cooling bills. Administered by the Department of Health and Human Services and distributed through state agencies, LIHEAP provides direct payments to utility companies on behalf of qualifying households. In Alabama, the program is managed through community action agencies. Eligibility is generally set at 150 percent of the federal poverty level or 60 percent of the state median income, whichever is higher. Benefits vary by state and funding availability but typically range from $200 to $1,000 per year.

HOME Investment Partnerships Program

The HOME program provides formula grants to state and local governments to fund housing activities for low-income residents. These funds support rental assistance, construction and rehabilitation of affordable housing, and direct homebuyer assistance. In some communities, HOME funds can cover down payment costs, closing costs, or provide below-market-rate mortgages. Check with your local housing program administrators in Alabama to see if HOME-funded assistance is available in your area.

VA Housing Assistance for Veterans

Veterans have access to several housing programs beyond the general population. VA home loans offer zero-down-payment mortgages with competitive interest rates. The HUD-VASH program provides free housing vouchers and supportive services to homeless veterans. The Supportive Services for Veteran Families program offers rapid rehousing assistance and homelessness prevention to very low-income veteran families. Veterans can contact their nearest VA Medical Center or call the National Call Center for Homeless Veterans at 1-877-424-3838.

USDA Rural Housing Programs

The U.S. Department of Agriculture offers housing assistance for residents of rural areas. The Section 502 Direct Loan program provides subsidized mortgages for very low-income homebuyers in eligible rural areas, with interest rates as low as one percent. The Section 521 Rural Rental Assistance program subsidizes rent in USDA-financed rental properties. Many communities in northern Alabama outside the Huntsville metro area qualify as rural for USDA purposes.

Finding Your Local PHA

Your local Public Housing Authority is the gateway to most government housing programs. PHAs administer Section 8 vouchers, manage public housing, and often coordinate with other agencies that run LIHEAP, HOME, and emergency assistance programs. HUD maintains a searchable PHA directory on their website. You can also call 2-1-1, a free nationwide service that connects callers with local social services and housing resources. For a comprehensive list of federal housing benefits, visit the Benefits.gov housing category page.