Housing Assistance Programs in Alabama: Complete List

Federal Housing Programs

Section 8 Housing Choice Vouchers

The Section 8 Housing Choice Voucher program is the largest federal rental assistance program in the country. Administered locally by public housing authorities, it allows qualifying families to rent from private landlords while the government pays a portion of the monthly rent. In Alabama, over 40 housing authorities distribute vouchers based on HUD fair market rent calculations for each county.

Eligibility is primarily income-based. Your household income must fall below 50 percent of the area median income, though housing authorities are required to provide at least 75 percent of their vouchers to applicants at or below 30 percent of AMI. Wait times vary significantly across the state, ranging from several months to over two years depending on local demand.

Public Housing

Public Housing developments are owned and managed directly by local housing authorities. Alabama has approximately 80 public housing agencies operating over 18,000 units statewide. Rent in these units is typically set at 30 percent of adjusted household income, making them one of the most affordable options for extremely low-income families.

Unlike Section 8, you do not choose your own landlord. Instead, you move into a unit owned by the housing authority. Many Alabama communities have undergone HUD's Rental Assistance Demonstration program, which allows public housing to be rehabilitated through private investment while preserving affordability protections.

HOME Investment Partnerships Program

The HOME program provides federal block grants to states and localities for building, buying, or rehabilitating affordable housing. Alabama receives roughly $10 million annually through HOME, which is allocated by the Alabama Housing Finance Authority. Funds support rental housing development, homebuyer assistance, and tenant-based rental subsidies in participating communities.

State-Level Programs

AHFA Step Up Homebuyer Program

The Alabama Housing Finance Authority runs the Step Up program for first-time homebuyers or those who have not owned a home in the past three years. It offers below-market interest rate mortgages paired with down payment assistance of up to $10,000. Borrowers must meet income limits, which vary by county, and complete a HUD-approved homebuyer education course before closing.

Low-Income Housing Tax Credit (LIHTC)

LIHTC is the primary tool for financing affordable rental housing construction in Alabama. Developers receive federal tax credits in exchange for building apartments reserved for households earning below 60 percent of AMI. The state allocates roughly $10 million in annual tax credit authority, resulting in hundreds of new affordable units each year. Residents apply directly to the property management company at each LIHTC development.

Local Huntsville Programs

Housing Opportunity Assistance Program (HOAP)

HOAP is a city-level program specific to Huntsville and Madison County. It provides down payment and closing cost assistance to qualifying buyers purchasing homes within the city limits. Funded through Community Development Block Grant allocations, HOAP can cover up to $7,500 in upfront costs for households earning below 80 percent of AMI.

Housing Helps Initiative

Huntsville's Housing Helps initiative coordinates emergency assistance across multiple local nonprofits and faith-based organizations. The program serves as a single point of contact for families facing eviction, utility shutoffs, or other housing emergencies. Case managers connect residents with the most appropriate resource, whether that is a one-time rent payment, utility assistance, or referral to longer-term programs.

Emergency and Crisis Programs

Emergency Solutions Grants (ESG)

ESG funding supports homeless prevention, rapid rehousing, and emergency shelter operations across Alabama. The state receives approximately $3.5 million annually, distributed to local governments and nonprofits. Eligible activities include short-term rental assistance for up to 24 months, security deposits, utility payments, and housing search support for individuals at imminent risk of homelessness.

CARES Act and Emergency Rental Assistance

The federal Emergency Rental Assistance Program, created under the CARES Act and subsequent legislation, delivered over $300 million to Alabama for rent and utility payments. While the initial emergency funding rounds have largely been disbursed, some localities continue to distribute remaining allocations. Contact your local housing authority or call 211 to check availability in your county.

For the most current information on federal program availability, visit the HUD Alabama resources page, which maintains an updated directory of participating agencies and open waiting lists.

Frequently Asked Questions

How many housing assistance programs are available in Alabama?

Alabama residents can access more than a dozen housing assistance programs spanning federal, state, and local levels. Major federal programs include Section 8, Public Housing, HOME, and ESG. State programs such as LIHTC and the AHFA Step Up program add further options, while local agencies run community-specific initiatives tailored to their populations.

Can I apply for multiple housing programs at once?

Yes. Applying for several programs simultaneously is encouraged because each program maintains its own waiting list and timeline. Being on multiple lists improves your chances of receiving assistance sooner. Keep in mind that you generally cannot receive overlapping benefits from two rental subsidy programs at the same time, so you will choose one when approved.