Research Report Leveraging Financing to Encourage Landlords to Accept Housing Choice Vouchers
Laurie Goodman, Karan Kaul, Michael Stegman
Display Date
Download Report
(351.28 KB)

Housing Choice Vouchers (HVCs) are the single largest component of Federal rental assistance, helping 2.3 million families. With these vouchers, the government pays the difference between the approved rent on the unit and 30% of a family’s income, up to the HUD fair market rent for the area. However, even when the rental costs of a unit are affordable to a housing choice voucher holder, many landlords are reluctant to rent to an HCV recipient. In this paper, we detail the reasons why and offer suggestions to improve HCV acceptance. We recommend that landlords who rent to HCV holders and offer certain renter protections should be eligible for GSE financing if the product is currently ineligible, or if already eligible, receive GSE financing on more favorable terms.  More specifically, we argue that single family rental operators who rent to HCV holders should be eligible for GSE financing (currently GSE financing for single family rental operators is unavailable with the exception of small mom and pop landlords.)We also recommend easier financing for the construction or rehabilitation of accessory dwelling units that are rented to HCV holders as well as access to favorable financing for multifamily properties that house HCV recipients. 

Research Areas Housing Housing finance
Tags Rental housing Housing finance reform Housing subsidies Housing vouchers and mobility
Policy Centers Housing Finance Policy Center