The Administration justifies its proposed changes to the voucher program in part by arguing that voucher costs are growing out of control. Are they?
No. The average cost of a voucher has grown substantially in recent years, but a temporary uptick in costs was to be expected, given the perfect storm of a hot housing market and a cooling economy. Voucher subsidies fill the gap between rents and limited incomes; a family contributes about 30 percent of its income toward the rent, and the voucher covers the remaining cost of a modest rent in the private market. As a result, when incomes fall or rent and utility costs rise, voucher costs temporarily increase. This is what happened in the late 1990s and early 2000s. Rents were rising rapidly as the housing market boomed, while the economy headed into recession and job losses led to an erosion of tenant income. The increase in rents has now begun to slow and income growth should accelerate as the economy recovers. These two trends are expected to keep voucher costs in check in the years ahead. The Congressional Budget Office projects that, after adjusting for inflation, total spending und
Related Questions
- The Administration justifies its proposed changes to the voucher program in part by arguing that voucher costs are growing out of control. Are they?
- What administrative changes will there be and have efforts been made to keep down administration costs?
- Do owners have any control over operation and administration costs?
