Complete Guide to Affordable Housing Programs in Huntsville, Alabama

Overview of Housing Assistance in Huntsville

Huntsville is one of the fastest-growing cities in Alabama. That growth has pushed rents higher, and a lot of working families, seniors, and individuals with disabilities are feeling the squeeze. If you're spending more than half your paycheck on rent, or if you're worried about keeping a roof over your head, you're not alone. Thousands of people in Madison County are in the same position.

The good news: there are real programs designed to help. Some are run by the federal government through HUD. Others come from the state of Alabama or from local agencies. This guide walks through all of them so you can figure out which ones you might qualify for and how to get started.

Every program has its own rules, waiting lists, and paperwork. That can feel overwhelming. We've tried to make this as straightforward as possible. If something isn't clear, the Huntsville Housing Authority office can answer specific questions about your situation.

Section 8 Housing Choice Voucher Program

This is the most widely known federal rental assistance program. A Housing Choice Voucher (commonly called "Section 8") lets you rent a privately-owned apartment or house, and the Housing Authority covers a portion of your rent directly to the landlord. You pay around 30% of your monthly adjusted gross income, and the voucher covers the gap.

Who Qualifies

To be eligible for a Section 8 voucher in Huntsville, you generally need to meet these criteria:

• Your household income must fall at or below 50% of the Area Median Income (see the income table below)
• You must be a U.S. citizen or have eligible immigration status
• All adult household members must pass a criminal background check
• HUD requires that 75% of vouchers go to applicants whose income is at or below 30% of the area median (Extremely Low Income), so those households have the strongest priority

How the Voucher Works

Once you receive a voucher, you go out and find a rental unit in the private market. The housing must pass an inspection called Housing Quality Standards (HQS), and the rent has to be within the payment standard for your area. After you sign a lease, the Housing Authority sends the landlord their share each month and you pay yours.

One major benefit: Section 8 vouchers are portable. If you get a voucher in Huntsville and later need to move to Birmingham, Nashville, or anywhere else with a participating housing authority, you can transfer your voucher. That flexibility isn't available with public housing.

About the Waiting List

Demand consistently outpaces supply. The Huntsville Housing Authority periodically opens its waiting list to accept new applications, then closes it once it reaches capacity. Wait times typically range from several months to two or more years. When the list opens, you'll want to apply quickly. Check our Section 8 page or call (256) 539-0774 for the current status.

Public Housing

Public housing is rental housing owned and managed directly by the Housing Authority. In Huntsville, the HHA manages over 1,200 units across several communities including Searcy Homes, Butler Terrace, and others. Rent is calculated at 30% of your adjusted monthly income, so what you pay adjusts if your income changes.

Eligibility

• Annual income at or below 80% of Area Median Income (Low Income limit). In practice, most openings go to families earning below 50% of AMI
• U.S. citizenship or eligible immigration status
• Satisfactory rental history and background screening

What to Expect

Public housing communities vary. Some serve families, others are designated for seniors (age 62 and older) or individuals with disabilities. Maintenance is handled by the Housing Authority, and many properties have on-site management offices, community rooms, and playground areas.

Learn more about available properties and the application process on our public housing program page.

Low-Income Housing Tax Credit (LIHTC) Properties

LIHTC is the largest source of affordable housing construction in the country. It's not a program you apply to through the Housing Authority. Instead, private developers receive federal tax credits in exchange for building or renovating apartments with below-market rents reserved for qualifying tenants.

How LIHTC Differs from Section 8

With LIHTC, you apply directly to the apartment complex, not to a housing authority. Rents are set at a reduced level (typically 30% of the income limit for the area, not 30% of your personal income). There's no voucher involved. If the rent for a LIHTC unit is $750/month, that's what you pay regardless of whether your income is $20,000 or $35,000.

Who Qualifies

• Most LIHTC units require income at or below 60% of the Area Median Income
• Some newer projects have units set aside at the 30% or 50% AMI level
• You apply directly with the property management company
• Each property sets its own screening criteria (credit, rental history, background)

USDA Rural Development Housing Programs

If you're looking at areas on the outskirts of Huntsville or in surrounding rural parts of Madison County and Limestone County, USDA Rural Development programs are worth exploring. Don't let the name fool you — many areas that feel suburban actually qualify as "rural" under USDA definitions.

Key Programs

• Section 502 Direct Loans — Low-interest home loans for low-income buyers. In some cases the interest rate can be as low as 1%, with repayment terms up to 38 years
• Section 502 Guaranteed Loans — USDA backs a loan from a private lender, allowing zero-down-payment home purchases in eligible rural areas
• Section 515 Rental Housing — Subsidized rental apartments in rural areas for low-income families and seniors
• Section 521 Rental Assistance — Works similarly to Section 8 but for tenants in USDA-funded rural housing projects

Eligibility depends on the property's location and your income. You can check whether a specific address qualifies using the USDA eligibility map tool.

Additional HUD Programs

HOME Investment Partnerships Program

HOME funds are distributed to state and local governments to create affordable housing. In Alabama, these funds support tenant-based rental assistance, rehabilitation of existing homes, and construction of new affordable housing. Contact the City of Huntsville's Community Development Department to learn about locally funded HOME projects.

HUD-VASH (Veterans Affairs Supportive Housing)

If you're a veteran experiencing homelessness or at risk of homelessness, the HUD-VASH program combines a Section 8 voucher with VA case management and clinical services. Referrals typically come through the VA Medical Center. Veterans in the Huntsville area should contact the Huntsville VA Clinic or the local HUD office.

Housing Opportunities for Persons with AIDS (HOPWA)

HOPWA provides housing assistance and support services for people living with HIV/AIDS. In Alabama, the program is administered through the state, and services include short-term rental assistance, facility-based housing, and permanent housing placement.

Income Limits for Madison County, Alabama

HUD publishes income limits every year. The table below reflects the approximate FY 2024-2025 limits for the Huntsville-Decatur-Albertville Metropolitan Statistical Area (MSA). These figures determine eligibility for most programs described in this guide.

Source: U.S. Department of Housing and Urban Development (HUD), FY 2024-2025 Income Limits for the Huntsville-Decatur-Albertville MSA. Figures are approximate and subject to annual revision. Check HUD's income limits page for the most current data.

Step-by-Step Application Process

The application process is similar across most programs, though each one has its own forms and timelines. Here's the general path from start to finish:

1. Research Which Programs Fit Your Situation Use this guide and the income table above to narrow down which programs you're likely eligible for. You can apply to more than one program at a time, and in most cases you should.
2. Gather Your Documents Before you start any application, pull together the paperwork you'll need (see the document checklist below). Having everything ready avoids delays.
3. Complete the Pre-Application or Application For HHA programs, you can get an application at our office at 200 South Gallatin Street or call (256) 539-0774 to ask about the process. For LIHTC apartments, contact the property directly. For USDA programs, visit the local USDA Rural Development office.
4. Submit Your Application Turn in the completed application along with all supporting documents. Make copies of everything you submit. If you're mailing it, consider using certified mail so you have proof of delivery.
5. Attend Your Interview Most programs require an eligibility interview where a caseworker verifies your information. Be honest and thorough. Inconsistencies between your application and what you say in the interview can delay or disqualify your application.
6. Wait for Placement If approved, you'll be placed on a waiting list (for Section 8 or public housing) or offered a unit (for LIHTC properties with availability). Stay in contact with the agency and update them immediately if your address, phone number, or household composition changes. Missed mail or outdated contact information is one of the most common reasons people lose their spot.
7. Complete Move-In Requirements Once your name comes up, you'll need to attend a briefing (for voucher holders), sign a lease, and in some cases pass a unit inspection before moving in.

Required Documents Checklist

Most housing programs in Huntsville will ask for the same core set of documents. Collecting these ahead of time makes the application process go much faster.

• Government-issued photo ID for every adult in the household (driver's license, state ID, or passport)
• Social Security cards for all household members, including children
• Birth certificates for all minor children
• Proof of income: last four pay stubs, employer letter, or most recent tax return (1040) for all working adults
• Benefit verification letters: Social Security award letter, SSI/SSDI, TANF, unemployment, VA benefits, or child support documentation
• Bank statements from the last 60 days (checking and savings) for all adults
• Proof of citizenship or eligible immigration status (U.S. birth certificate, naturalization certificate, or immigration documents)
• Rental history: names, addresses, and phone numbers of landlords for the past 3 years
• Disability documentation (if applicable): letter from a doctor or the Social Security Administration confirming disability status
• Divorce decree, separation agreement, or custody documentation (if applicable)
• DD-214 or military service records (for veterans claiming preference)

Frequently Asked Questions

Useful Contacts and Resources

Getting in touch with the right office can save you weeks of guessing. Below are the key organizations that administer or support affordable housing programs in the Huntsville area.

Your Next Steps

Finding affordable housing takes persistence. Programs exist, but the process isn't always fast. Here's a practical summary of what to do right now:

1. Check your income against the income limits table to see which category you fall into
2. Gather your documents using the checklist above — this alone puts you ahead of most applicants
3. Apply to multiple programs simultaneously — Section 8, public housing, and any LIHTC properties with openings
4. Contact the Huntsville Housing Authority at (256) 539-0774 or visit our application page to start the process
5. Keep your information current — if your phone number or address changes, update every agency you've applied to immediately

Affordable housing is a right worth fighting for. The programs outlined here exist because the community and federal government recognize that stable housing is the foundation for everything else — keeping a job, staying healthy, raising a family. Take the first step today.

Last updated: February 2026. Income limits and program details are subject to change. For the most current information, contact the agencies listed above or visit HUD.gov.