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The Basics
Housing is the biggest monthly expense that most people have. If you have trouble paying for your housing, there are programs that might help.
For many people, the first step in getting help with housing is to contact local public housing authorities (PHAs). Learn more about how to apply for benefits at PHAs.
These are some of the main types of housing programs that might help you:
- Voucher programs help pay for rent in privately-owned rental housing. With a voucher, you get to choose a place to live. Section 8 is the biggest voucher program. Learn more about voucher programs.
- Site-based housing programs help pay for rent in specific housing units that have been set aside only for people with low income. You do not get to choose your housing. Site-based housing includes government-owned public housing and privately-owned project-based housing. Learn more about site-based housing.
- Homeownership programs can help pay for a down payment, closing costs, or monthly mortgage payments, or help prevent foreclosure. They may also help pay for accessibility improvements. Learn more about homeownership programs.
When you have housing benefits and you work, your rent might go up. But with some housing benefits, if you have a disability and get a job, the Earned Income Disregard (EID) program means you might not have to worry about your rent going up immediately. Learn more about how income affects rent and if the EID might help you.
To find housing programs, contact local public housing authorities (PHAs) or use the HUD Resource Locator.
If you are experiencing homelessness, contact:
- The Michigan Coalition Against Homelessness
- Michigan’s Campaign to End Homelessness, or
- The HUD Resource Locator and click on “Find Homeless Resources Near Me.”
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Housing
- The Basics
- How to Apply for Benefits at PHAs
- Voucher Program Rules
- Site-Based Housing
- Rental Benefits and Work
- Homeownership Programs
- Example
- FAQs
- Pitfalls
- Next Steps
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How to Apply for Benefits at PHAs
Public housing authorities (PHAs) are local agencies that manage many of the programs in this article, including Section 8 and public housing. They are the first place you should go when you are thinking about applying for help with your rent. This page explains the basics of how to apply for housing benefits at public housing authorities. Later pages explain who can get these benefits and how they work.
How to Find Local Public Housing Authorities
The U.S. Department of Housing and Urban Development (HUD) oversees PHAs and has a list of Michigan public housing authorities. Most PHAs have waiting lists to get Section 8 benefits or to enter public housing, so it’s important to apply at more than one PHA.
PHAs manage Section 8, public housing, HOPWA
Other agencies also manage housing programs. Here are a few examples:
- The U.S. Department of Agriculture has rural housing programs.
- The U.S. Department of Housing and Urban Development’s Eastern/Woodlands Office of Native American Programs has programs for Native Americans.
- Some privately-owned apartment buildings set aside units for people with low income. You may have to apply directly at their property management offices.
When you talk with PHAs, ask what other agencies might be able to help you.
The Application
Each housing authority has its own forms that you must fill out. Generally, these forms ask for the same information, like who lives in your household, how they are related, how much income you have, and if you have a disability.
If your disability makes any part of the application process hard for you, the PHA must give you reasonable accommodations
- Help filling out application forms
- Braille application forms
- Extra time to fill out applications
- Help to find an apartment
Note: You should never have to pay to apply for Section 8. It is illegal for somebody to sell you a Section 8 application or voucher.
Waiting Lists
When you go to apply for Section 8 benefits, public housing, or any other program managed by a PHA, you probably won’t get help immediately. Instead, you might be put on a waiting list. A waiting list means you have to wait until it’s your turn to get a benefit.
The PHA tells you if they have an “open” waiting list or a “closed” waiting list:
- If the waiting list is open, you can apply and your name is added to the list. It may take years for you to get a benefit. How long it takes depends on the PHA. If you apply to more than one PHA, you are more likely to get benefits sooner.
- If the waiting list is closed, you can’t apply.
If you are on a waiting list, you must keep your information up-to-date. Tell the PHA if your contact info changes and reply whenever the PHA tries to contact you. Otherwise, they might take you off the waiting list and you won’t get benefits.
- Apply to all of the public housing authorities located in areas where you are willing to live and that have open waiting lists. You may get higher priority if you already live in the area the PHA serves.
- Sometimes people with disabilities and veterans get priority on waiting lists. Ask each housing authority how their waiting list works and be sure to tell them any details that might help you get benefits faster.
- If you have a disability, miss a letter asking you to update your information, and your name is taken off the waiting list, you can ask that your name is put back on the list as a reasonable accommodation.
Benefit Approval
When your name reaches the top of the waiting list, the housing authority looks at your application and personal information to make sure you qualify for benefits.
If you qualify, the PHA then explains all program rules. The rules for some programs are explained in the rest of this article.
If a public housing authority turns you down for benefits, they have to explain why and tell you how you can appeal.
If the reason you were turned down is related to your disability, you can ask for another chance to complete your application. For example, if you didn’t do the application quickly enough because you have a mobility impairment, the public housing authority must let you apply again.
And if you think you were turned down because of your disability and the housing authority still says you are not eligible, get legal advice. Here are resources that can help:
- Disability Rights Michigan (DRM) represents the rights of children and adults with disabilities.
- The American Bar Association lists providers of free legal services.
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Voucher Program Rules
Voucher programs help people with low-income pay for rent in any privately-owned apartment that meets certain standards and where the landlord accepts payment from the voucher program. This means you find a place to live, and once you have one, you pay your landlord a portion of your monthly household income for rent, while the voucher program pays the rest.
Section 8 Housing Choice Voucher (HCV) Program
The Section 8 housing choice voucher program (also called “tenant-based Section 8”) is the largest voucher program. It is paid for by the federal government and managed by local public housing authorities (PHAs). The PHAs make sure that the housing you get is safe, decent, and affordable.
This page describes Section 8 housing choice vouchers in detail. Here are some other voucher programs that work similarly:
- Housing Opportunities for Persons with AIDS (HOPWA) helps low-income people living with HIV/AIDS. HOPWA is managed by public housing authorities.
- The Family Unification Program (FUP) helps families whose lack of housing might cause the children to be put in foster care, or delay their return to the family from foster care. In Michigan, the FUP program is handled by the Detroit, Plymouth, Pontiac, and Saginaw housing commissions.
- The HUD-Veterans Administration Supportive Housing (HUD VASH) program links housing vouchers for veterans experiencing homelessness with case management and services by the Department of Veterans Affairs (VA). For more details, veterans experiencing homelessness should contact their local VA case manager or the VA Detroit Regional Benefit Office.
How Section 8 Housing Choice Vouchers (HCVs) Help
With Section 8, you pay about 30% to 40% of your monthly household income for rent in privately-owned housing, while the government pays the rest.
Note: You may end up eventually paying more than 30% to 40% of your income for rent if the landlord raises the rent after you move in.
Once you have a housing choice voucher, you can keep using it even if you move to another city or state, as long as there is a PHA that can manage the voucher in the area where you want to live.
Most people use their housing choice vouchers to get apartments or single family homes, but if you have a disability you can also use a voucher to pay for a group home, a shared place, a room, or an assisted living facility.
In addition to housing choice vouchers. Section 8 offers other benefits:
- Project-based housing. Learn more.
- Help with homeownership. Learn more.
Who Section 8 Helps
To get any type of Section 8 benefits, you must:
- Have very low income (less than 50% of the area median income)
- Be a U.S. citizen or an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents.
You may be more likely to qualify for Section 8 if you:
- Have a disability
- Have children
- Are age 62 or older
- Are a U.S. Armed Services veteran, widow, or widower
- Are experiencing homelessness
- Are in a shelter
When you apply, the people reviewing your application take into account:
- Your history with federal housing programs
- Your criminal background
- Your credit history
Learn more about how to apply for Section 8 vouchers at public housing authorities.
You might not get Section 8 benefits if you or someone in your household has had one of these problems with a public housing authority in the past:
- You were evicted from public housing
- You were forced out of another Section 8 program for bad behavior
- You committed fraud or other crimes related to the housing program
- You owe money to a housing authority
If you don’t qualify for Section 8 because of one of these problems and the problem was related to your disability, you can ask for an exception to this policy as a reasonable accommodation. For example, if you have a mental illness and your problem with your housing happened because you were not on a medication you need, you may be eligible for Section 8 again if you explain that you are now receiving treatment.
Getting a Section 8 Voucher
After you apply, your name is put on a waiting list. When your name reaches the top of the waiting list, the housing authority reviews your application and personal information to see if you qualify for Section 8. They look at things like:
- How many people are in your household
- Their age, sex, and relationship to each other
- The medical conditions and disabilities of household members
For example, if you have a disability and need a live-in aide or overnight support staff, you may be able to get an apartment with a larger number of bedrooms.
When you are approved for a Section 8 housing choice voucher, the PHA may tell you that to get your voucher, you have to live in a specific unit for at least one year. This is called a “project-based voucher.” After you have lived in the specific unit for a year, you can ask to get help with your rent in another privately-owned unit and from then on, the voucher rules are exactly the same as any other Section 8 housing choice voucher.
Finding a Place
After the Section 8 briefing, you have to find a place quickly. The PHA usually gives you between 60 days (two months) and 120 days (four months) to find a place. In addition to the list of landlords your PHA gives you, check the Michigan State Housing Development Authority (MSHDA) Housing Locator for apartments in your price range.
Tip: If you have a disability and need more time to find a place, try asking for extra time as a reasonable accommodation.
If it is hard to find a place within the price range given by your PHA, the PHA may increase your rental amount slightly. If you still can’t find a place, the PHA can submit a request to the federal Department of Housing and Urban Development (HUD) asking for a “specially approved payment amount” that lets you get a place with higher rent. Ask your PHA to help you in any way they can.
Landlords are not legally required to accept Section 8 vouchers and may turn you down if you want to use vouchers. However, it is illegal for them to refuse to rent to you because you have a disability. If you think a landlord is discriminating against you and refusing to rent to you because of your disability, ask the housing authority for help.
If you think you have been discriminated against, you can also use these resources:
- The Disability Rights Michigan (DRM) represents the rights of children and adults with disabilities in Michigan
- The American Bar Association lists providers of free legal services
- U.S. Department of Housing and Urban Development (HUD) explains how to file a discrimination complaint
If you find a place you like, but it needs some modifications to be accessible for you, the housing authority may give higher payments to the landlord to help cover the cost of those modifications. As long as the modifications you need are reasonable, landlords must allow them.
After You Find a Place
Once you find a place to rent that accepts your voucher:
- Landlords may check your credit history, criminal background, and rental history before approving your application.
- The PHA must inspect the rental unit before they start making payments to the landlord.
If the landlord accepts your application and the rental unit passes the PHA’s inspection, you can move into your place. You pay about 30% of your income as rent and the Section 8 program pays the rest.
Learn more about how your income and your earnings affect your rent.
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Site-Based Housing
Site-based housing programs can also help you live in an apartment you can afford. Unlike voucher programs, with site-based housing you do not get to choose where you live — you have to live in a specific unit at a specific location that has been set aside for people with low income.
This page explains the two basic types of site-based housing:
- Project-based housing programs are privately-owned apartments that are available only to people with low income.
- Public housing programs are government-owned apartments.
With both project-based housing and public housing, if you move out of your specific unit, you might stop getting help with your rent.
Project-Based Housing
There are different ways to get project-based housing:
- You may be able to apply for it directly at a privately-owned building that has set aside units for people with low income. For help finding the management for these units, speak with public housing authorities (PHAs).
- Section 811 is a project-based housing program for people with disabilities. The Michigan State Housing Development Authority lists Section 811 projects.
- Section 8 funds many project-based units that are managed by local PHAs. This section mainly explains how Section 8 project-based housing works, but the rules are usually similar for other project-based housing.
A local public housing authoring (PHA) is a good place to get help finding and applying for project-based housing. Learn more about the application process at PHAs.
How Section 8 Project-Based Housing Helps
With Section 8 project-based housing, the PHA works directly with a housing unit’s owner to make the housing available to people in the Section 8 program. When one of these privately-owned apartments is empty, the PHA offers it to someone on its waiting list.
Who Section 8 Project-Based Housing Helps
To get Section 8 project-based housing, you must:
- Have low income
-
Be a U.S. citizen or
an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents
You may be more likely to qualify if you:
- Have a disability
- Have children
- Are age 62 or older
- Are a U.S. Armed Services veteran, widow, or widower
- Are experiencing homelessness
- Are in a shelter
When you apply, the people reviewing your application take into account:
- Your history with federal housing programs
- Your criminal background
- Your credit history
Learn more about the application process, and waiting lists.
What You Pay in Project-Based Housing
In project-based housing, you pay about 30% of your income as rent. Learn more about how your income and your earnings affect your rent.
Note: If you move out of your project-based apartment, you may lose the help you are getting with your rent.
Public Housing
Public housing is rental housing for people with low income that is owned and managed by a local government agency. With public housing, you usually pay 30% of your household income.
How Public Housing Helps
With public housing, when you are at the top of the waiting list and a unit becomes available that matches your needs, the PHA offers to rent you that specific unit.
There are many types of public housing, ranging from single-family houses to large apartment buildings. Waiting lists for public housing may be very long and the type of housing you want may not be available for a long time. You should apply to several different public housing programs to get on their waiting lists. That way, you have a better chance of getting a place.
Who Public Housing Helps
To qualify for public housing, you must:
- Have low income
- Be a U.S. citizen or be an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents
If your income is low enough for you to qualify, the local housing authority also checks:
- Your references, to make sure you and your family are good tenants
- Your credit history
- Your history as a tenant
- Your criminal background
If you have had problems with a housing authority in the past or owe money for rent or damages to a housing authority, you probably won’t be allowed to live in public housing.
When you fill out the application, be sure to mention your disability, because some units are reserved for people with disabilities.
Learn more about the application process and waiting lists.
If you have questions about public housing, you can also contact the U.S. Department of Housing and Urban Development (HUD) at 1-800-955-2232.
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Rental Benefits and Work
This page discusses the income rules for:
- The Section 8 housing choice voucher (HCV) program
- Public housing
- Housing Opportunities for Persons With AIDS (HOPWA), and
- Many different project-based housing programs.
Other programs may also use these same rules or rules that are similar.
Rent Based on Your Income
The key thing to know when you get help with rent from these programs is that how much you pay for rent is directly related to your total income, including earnings from work, benefits you get (like Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), and other unearned income.
When you get benefits from one of these housing programs and move into a place, you’ll have to pay between 30% and 40% of your household income in rent. For example, if you make $1,000 a month, you may have to pay $300 each month for rent. The program pays the rest of the apartment’s rent. You may end up paying a little less if you qualify for credits related to your disability or medical expenses, or if you have children and you pay for childcare costs.
Note: Any money earned by a child under age 18 does not count as household income, and will not affect the rent the family pays. However, unearned income is counted, including SSI, FIP, or child support.
Generally, you keep paying the same amount of rent as long as your income or other family circumstances don’t change. The only thing you have to do is keep your income, family information, and contact information up-to-date with the manager of your housing benefit. Each year, in a process called annual recertification, the housing agency looks at your income and family situation again and decides how much rent you must pay in the coming year.
If your unearned income goes up, you still pay about 30% of your income for rent, but because you have more income, your 30% adds up to more, and the housing program pays less.
If you start to make more money at work, you might not have to pay more rent, depending on whether your housing program has an Earned Income Disregard (EID).
If you make enough money that 30% of your income is enough to pay the entire rent, Section 8 housing choice vouchers won’t help pay your rent anymore – you’ll have to pay the full rent. However, if your income goes down during the first six months after you stop getting a Section 8 subsidy, Section 8 will start helping you with your rent again and you won’t have to reapply.
The rules are a bit different for public housing. If your income goes over the “low income” limit, the PHA can choose to evict you from public housing unless you are participating in the Family Self-Sufficiency Program (FSS) or if a family member gets the Earned Income Disregard. If your income goes up enough that 30% pays the entire rent and the PHA does not choose to evict you, at your next annual recertification you have the choice of switching to paying “flat rent” (market rate) or staying with income-based rent. If you switch to paying flat rent and then your income drops drastically, you can immediately change back to income-based rent (you don’t have to wait for the next annual recertification).
Earning More in Project-Based Housing
In project-based housing, the more you make, the more rent you pay. Earned income is treated exactly the same as unearned income, so if your earnings go up by $500 per month, your rent would go up by about 30% of that ($150 per month).
The bottom line: You’re better off if you earn more because your rent won’t go up as much as your earnings.
Last year you moved into a project-based apartment that costs $800 per month. You used to make $1,000 a month and only paid $300 each month for your apartment. Section 8 paid the other $500 each month in rent.
Two months ago, you got a better job where you make $1,500 each month. Because you make more, you now have to pay $450 each month for your apartment and Section 8 only pays $350.
Even though the amount you pay towards your rent is higher, you still have more money left over after paying your rent. When you made $1,000 a month from your job and paid $300 a month rent, you had $700 a month left over (minus taxes). Now that you make $1,500 a month from your job and pay $450 a month rent, you have $1,050 a month left over (minus taxes).

Step 1: Your Subsidized Housing | ||
Do you get help from a housing program? | ||
How much do you spend on rent each month? | $ | |
Has a housing program’s Earned Income Disregard (EID) ever helped you? | ||
Step 2: Your Current Income (per month): | ||
Earnings from work now: | $ | |
Supplemental Security Income (SSI): | $ | |
State SSI Payment (SSP) per quarter: | $ | |
Social Security Disability Insurance (SSDI): | $ | |
Other unearned income: | $ | |
Step 3: Your Future Work Plan (per month): | ||
Earnings from work in your plan: | $ | |
$1,470 | ||
$20 | ||
$65 | ||
$914 | ||
Results
Results
Results
Results
Results
Results
Your monthly SSI benefit: | $ |
Your monthly SSDI benefit: | $ |
Your total monthly income: | $ |
Change in total income: | $ |
Your monthly rent: | $ |
Change in rent: | $ |
Results
Your monthly SSI benefit: | $ |
Your total monthly income: | $ |
Change in total income: | $ |
Your monthly rent: | $ |
Change in rent: | $ |
Results
Your monthly SSDI benefit: | $ |
Your total monthly income: | $ |
Change in total income: | $ |
Your monthly rent: | $ |
Change in rent: | $ |
Results
Your total monthly income: | $ |
Change in total income: | $ |
Your monthly rent: | $ |
Change in rent: | $ |
Results
Your monthly SSI benefit: | $ |
Your monthly SSDI benefit: | $ |
Your total monthly income: | $ |
Change in total income: | $ |
Year 1: The first 12 months after your earnings go up | Year 2: The next 12 months after your earnings go up | Year 3 and later: 24+ months after your earnings go up | |
Your monthly rent: | $ | $ | $ |
Change in rent from what you pay now: | $0 | $ | $ |
Results
Your monthly SSI benefit: | $ |
Your total monthly income: | $ |
Change in total income: | $ |
Year 1: The first 12 months after your earnings go up | Year 2: The next 12 months after your earnings go up | Year 3 and later: 24+ months after your earnings go up | |
Your monthly rent: | $ | $ | $ |
Change in rent from what you pay now: | $0 | $ | $ |
Results
Your monthly SSDI benefit: | $ |
Your total monthly income: | $ |
Change in total income: | $ |
Year 1: The first 12 months after your earnings go up | Year 2: The next 12 months after your earnings go up | Year 3 and later: 24+ months after your earnings go up | |
Your monthly rent: | $ | $ | $ |
Change in rent from what you pay now: | $0 | $ | $ |
Results
Your total monthly income: | $ |
Change in total income: | $ |
Year 1: The first 12 months after your earnings go up | Year 2: The next 12 months after your earnings go up | Year 3 and later: 24+ months after your earnings go up | |
Your monthly rent: | $ | $ | $ |
Change in rent from what you pay now: | $0 | $ | $ |
Earning More in Public Housing, or with a Voucher from Section 8 or HOPWA
If you live in public housing or get help from a Section 8 housing choice voucher or HOPWA, there is a rule that means when you start working, your rent might not go up at all!
These housing programs have a rule called the Earned Income Disregard (EID) that lets people with disabilities get a job (or a raise) and keep paying the same amount for their rent for a year, even if their work causes their total income to go up. With an EID, you don’t have to worry that your housing benefit will change or that your rent will go up immediately if you get a job.
With an EID, your increased earnings only affect your rent gradually:
- Year 1: During the first 12 months after your earnings go up, the amount your work causes your total income to go up isn’t counted when your rent is calculated. Your rent doesn’t go up because of your earnings.
- Year 2: During the next 12 months after your earnings go up, only half of the amount your work causes your total income to go up is counted. Your rent only goes up half as much as it would if you didn’t have an EID.
- Year 3 and later: After 24 months, your entire income is counted when your rent is calculated.
There are a few details to keep in mind.
- You only get an EID once and it ends after 24 months. If you’ve ever had an EID in the past, you can’t get another one.
- If you are in the Section 8 housing choice voucher program, the only way to qualify for an EID is if it is a family member with a disability who has increased their earnings. That family member could be you or someone else who lives in the house, but they must have a disability.
- If you are in public housing, the family may qualify for an EID if any family member has increased earnings.
Note: If you were already working before your earnings went up, the EID may not apply. For detailed information on this, see Module 5 of the WIPA & Community Partner Work Incentives Counseling Training Manual.
- When your income goes up because you or your family member gets a job, it’s the first job you or your family member has had in a year or more; or the family member earned less than an amount equal to 500 hours at the local minimum wage in the year before the new work started
- In the six months before you or your family member got a new job and your household income went up because of this work, your family was getting FIP or was participating in a jobs program through FIP, or
- You or your family member got your job while participating in a job-training or self-sufficiency program.
Family Self Sufficiency (FSS) Program
The Family Self-Sufficiency (FSS) program helps families in public housing who get help through either
- Housing choice vouchers
- The Native American Housing Assistance and Self-Determination Act
- and whose income goes up because of work.
When the family income goes up and the program starts paying less for rent, the FSS program takes the money that it saves on rent and sets that money aside for the family. The family can use these savings for purchases, such as the down payment on
This can be especially helpful if you’ve used up your Earned Income Disregard or if it does not apply to your situation. Learn more about the FSS.
Clyde and Bertha live with their two children and have $500 in monthly income. Due to their low income, they qualify for the Section 8 housing choice voucher program. With the voucher, they pay about $150/month in rent (30% of $500), even though their apartment costs $1,000/month. Section 8 pays the remaining $850/month.
Bertha starts doing some childcare work and the family income goes up to $1,000 each month. Because she’s already used up her once-in-a-lifetime EID, they now have to pay about $300/month as rent (30% of $1,000), while Section 8 pays the remaining $700/month for the family's apartment. This means that Section 8 is paying $150 less per month than it used to pay.
Because the family is part of the FSS program, the PHA that administers Clyde and Bertha's Section 8 benefits takes that $150 each month and sets it aside for the family. A year later, there is $1,800, which Bertha can use to make the down payment on a car.
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Homeownership Programs
Owning your own home might seem like an impossible dream, or you may own your home and worry about losing it — in both cases, there are programs that can help you with homeownership:
- Down payment and mortgage programs can help you buy a home.
- The Section 8 homeownership program can help you with mortgage payments on a home if you are currently renting using a Section 8 housing choice voucher.
- Foreclosure assistance programs can help you if you own your home, but are worried about falling behind on your mortgage payments.
Down Payment and Mortgage Programs
A mortgage is the type of loan used to buy a house or other real estate. A homebuyer typically has to come up with 20% or more of the sale price of the home as a down payment on the mortgage.
You might think that you can never save up enough for a down payment on a home, but there are programs that can help you with your down payment and mortgage so that you don’t need to save up as much as you may think. If you have a disability, the program may also help pay the cost of repairs or improvement to make the home more accessible.
The Michigan State Housing Development Authority (MSHDA) offers a Down Payment program that helps with a down payment of up to $7,500 for people buying a home for the first time and for repeat homebuyers in certain areas.
The Mortgage Eligibility Tool lets you enter information about your income, estimated loan amount, and home buying location, and find out if you might qualify for an MSHDA down payment and mortgage program.
Here are some other ways you may be able to get help with your down payment and mortgage:
- Some cities and counties offer financial help that may cut your share of the down payment to as little as 1% of the purchase price. The rules are different for every program. The U.S. Department of Housing and Urban Development (HUD) lists homeownership assistance programs by Michigan cities and towns.
- The Federal Housing Administration (FHA) offers mortgages with down payments as low as 3.5%, low closing costs, and easy credit qualification.
- Veterans Administration (VA) Home Loans are available with a zero down payment.
- Some credit unions and other lenders offer zero-down-payment mortgages.
- Habitat for Humanity requires only a small down payment, and then you put in “sweat equity” hours helping build your own home or the homes of others in the homebuilding program; cleaning up construction sites, working in a Habitat ReStore, or doing Habitat office work or other tasks also qualify. Contact your nearest Habitat for Humanity chapter for more info.
- Your family may be able to help with your down payment. A cash gift to help with a down payment is allowed on most types of loans. The gift may affect the income taxes of the person giving the money, but there are usually no limits on the amount of the gift.
Individual Development Accounts (IDAs)
An Individual Development Account lets you save up money to buy a home, pay for higher education, or run your small business. To open an IDA, you must find an IDA program in your area and meet certain eligibility requirements. Once you open your account, the sponsor of your IDA program may match the funds you deposit, helping your account grow faster.
The eligibility rules for IDA programs vary. Generally, you must be working, but have low total income. Once you’re in the IDA program, you must also take financial education classes that prepare you for homeownership.
The biggest benefit of an IDA is that each time you deposit money into your savings account, the sponsors of your IDA program “match” your deposit with money of their own.
Another benefit is that some federally funded IDA programs allow you to save up money without having to worry about asset limits for programs like Supplemental Security Income (SSI).
Most IDA programs only let you save a limited amount of money in your account, usually $4,000 - $6,000. This includes the money you deposit plus the matching funds. Once you reach the limit, you aren't allowed to deposit any more money into the account. IDA programs also limit how long you can save (usually three years).
You can read more about IDAs and how to find an IDA program in DB101’s Building Your Assets and Wealth article.
You may be able to save up the money for a down payment and other home-buying expenses in an ABLE Account, which lets some people with disabilities save money without it being counted for the asset limits for SSI and other benefits. Learn more about ABLE Accounts.
Section 8 Homeownership Voucher Program
Some public housing authorities (PHAs) let you use a Section 8 housing choice voucher to buy a home or pay monthly homeownership expenses instead of paying rent. The amount of money that Section 8 pays for a home is the same as the amount it would pay for rent.
Read the DB101 page on How to Apply for Benefits at PHAs so you know how to get Section 8. There are waiting lists, and it can take time before you get a housing voucher.
The Key to Own Homeownership Program helps families with a rental housing choice voucher change it into a homeownership voucher. You have to:
- Be working at least 30 hours a week and earning at least $15,000 per year, but there are exceptions for elderly people and people with disabilities
- Be a first-time homebuyer or have not owned a home in the last three years
- Be in good standing with your Section 8 housing choice voucher program
You have to fill out an application with the Michigan State Housing Development Authority (MSHDA), and if you are accepted to the Key to Own program, you need to attend free Homebuyer Education and Financial Management classes. After you meet all the requirements, Key to Own staff can help you find a participating lender to get you pre-approved for a mortgage.
You can also check with your local housing authority to see if you can use your voucher for homeownership. If you want to buy a home and don’t have a voucher yet, apply for vouchers at housing agencies that allow homeownership.
Most of the rules for homeownership vouchers are exactly the same as the standard Section 8 vouchers, but there are a few added requirements:
- No one in your household can currently own a home, or have owned one in the last three years
- No one in your household can have been given homeownership help in the past and then defaulted on the mortgage
- You must attend and complete a homeownership counseling program
- If you are not disabled or elderly, you must have full-time employment
If you or somebody in your family has a disability, you may be more likely to be allowed to use your Section 8 voucher for homeownership if having your own home is considered a necessary reasonable accommodation.
Finding a Home to Buy
When you have a Section 8 voucher that you can use for homeownership, start looking for housing to buy right away. Like rental vouchers, there may be a time limit for buying a home. There may also be limits on the size and price of the home you can buy, and rules about the types of mortgage you can get. However, there are no limits on which neighborhood you live in.
Key to Own or housing authority staff can refer you to local realtors and lenders who can help you. If you are looking into this on your own, be careful about your lender and realtor. It is important to have a lender and a realtor who know how the Section 8 Homeownership Program works in your area, who have relationships with the local staff who handle the program, and who understand the paperwork. This helps the home-buying process go more smoothly; it also gives confidence to home sellers that you have the resources to buy their home.
Buying the Home
When you’ve found a home to buy, the housing authority inspects it to make sure that it is in decent condition and meets all safety and regulatory standards. It also has to be inspected by an independent inspector that you choose and pay.
If Key to Own or the housing authority gives the okay for you to buy the home you found, you can go ahead and buy it. Make sure to get a “contract of sale” and give a copy of it to the housing authority. Check with the housing authority about what must be included in the contract. If you don’t give your housing authority a copy of this contract, you won’t be able to get Section 8 support for your housing.
Once you have everything lined up and the sale actually goes through, your housing authority calculates how much you have to pay on your mortgage each month and how much Section 8 pays. As with Section 8 rental assistance, the amount you have to pay is about 30% of your income. As long as your income and family situations don’t change much, you can get Section 8 homeownership support for 10 to 15 years. And if you have a disability or are elderly, there is no time limit; you keep getting Section 8 homeownership support for as long as you need it.
Once your mortgage is fully paid off, you are the owner of the home and the government is no longer involved. You won’t get Section 8 benefits anymore, but that is fine because you’ll own your own home and won’t owe any more payments on it.
Foreclosure Prevention
If you are having trouble paying your mortgage, there are several programs that can help you. Be sure to open all mail from your lender, and call for help as soon as you receive a warning notice from your lender:
- The Step Forward Michigan Program at 1-866-946-7432 may be able to help you catch up on your mortgage or tax payments.
- Making Home Affordable offers a national hotline with counselors available 24 hours a day, seven days a week at 1-888-995-HOPE (4673).
- The U.S. Department of Housing and Urban Development (HUD) Counseling & Agency Locator Line at 1-800-569-4287 can refer you to a housing counselor who can guide you through the process.
These hotlines have experts who answer the phone and give you information about what you can do to keep your home.
Here are some other resources that can help you prevent foreclosure:
- The Michigan State Housing Development Authority (MSHDA) lists financial and other resources for homeowners facing foreclosure, including where to get emotional and other support during difficult times.
- MSHDA also lets you search online to find a housing educator who can help you if you’re having financial trouble, need help finding local resources, or facing foreclosure.
- The Michigan Foreclosure Task Force (MFTF) lists basic information on mortgage foreclosure and strategies and resources.
- HUD offers Tips for Avoiding Foreclosure and also has a comprehensive guide for Avoiding Foreclosure.
- Making Home Affordable explains how to avoid scams.
If you need to repair your home to make it more livable or accessible and your home is worth more than you owe on your mortgage, the Property Improvement Program offers loans of up to $25,000 with interest rates of 4% to 8%, depending on your gross household income. Your home must be your primary residence. To learn more or apply, contact an MSHDA-approved participating lender or community agent in your area.
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Example
David's Story
David used to be an avid rock climber, until he slipped. He was lucky and survived the fall, but it caused damage to his spine and he couldn’t walk anymore.
Before the injury, David was a construction worker, but after the accident, he couldn’t do that anymore. So he decided to go to a community college and learn how to be a sound technician. He also applied for Medicaid to cover his medical expenses and Supplemental Security Income (SSI), so he’d have some money to live on.
He qualified for both, but SSI wasn’t going to be enough to cover all of his expenses, especially rent. He was staying with some friends, but he knew that he couldn't stay with them forever. Not knowing what to do, David called up his local Independent Living Center and asked them if there were any programs that might help him with his rent. They told him to call the local HUD Public Housing Field Office. David called the HUD office and spoke with Barry. He and Barry set up an appointment for later that week.
“David,” Barry said, after reviewing David’s info, “It looks like you qualify for Section 8 benefits. When you get Section 8 benefits, the federal government pays a portion of your rent.”
David had heard of Section 8 but didn’t realize he could get it. “That sounds great!” he exclaimed. “Where do I sign up?”
“Unfortunately,” Barry said, “you’ll have to sign up in several different places. Section 8 is funded by the federal government, but it’s managed by many different local programs called public housing authorities.”
Barry gave David a list of the housing authorities in the area, along with their contact information, and told him, “Each public housing authority has its own application form and there’s no real way of knowing which one might give you a Section 8 voucher, which ones may turn you down, and which ones just put you on waiting lists. The best thing for you to do is to apply to all of the housing authorities in the area where you want to live and then see which one replies to you first.”
David looked at the list and circled the ones that were near his community college. He set himself a goal of submitting an application to one public housing authority each week until he’d applied to them all. While he waited to hear back, he started school. His friends let him stay with them until his Section 8 was approved.
A couple of months later, David got a call from one of the public housing authorities. His caseworker at the housing authority, Ahmed, told him that because he had a disability, he had priority on the waiting list, and that’s why they’d gotten back to him so quickly. David and Ahmed scheduled a screening interview so they could go over his eligibility together.
During the interview, Ahmed asked David questions to make sure that he met the eligibility requirements for the program, and then said that David would have no problem qualifying. At the end of the screening interview, Ahmed scheduled David for the following week for a meeting called the “Section 8 briefing.” At the briefing, David learned how the Section 8 program worked and how to find an apartment that his Section 8 voucher would help pay for.
David was really happy. His friends helped him look for an apartment that weekend. He found one that was $800 per month and only a block away from his school. Once he found it, he told the public housing authority about it and they inspected it to make sure it was okay.
Once it was approved, they calculated how much of the $800 David would have to pay and how much the Section 8 voucher would pay. Since David's only income was $914 per month from SSI, he would only have to pay about $270 each month in rent! Section 8 would pay the rest.
David signed his lease agreement and moved in to his own place.
Earned Income Disregard
After going to school for a while, David decided to get a part-time job. He was lucky to find a job as a cashier at the local music store. The job would pay him $500 a month, enough to pay his rent, with a little extra for his other expenses.
The day after he got the job, he called up Ahmed at the public housing authority.
“Ahmed,” he said on the phone, “I got a job! Does that affect anything?”
“It might,” said Ahmed. “Why don’t you come in so we can talk? I’ve got an open appointment tomorrow morning if you’re free.”
The next day, they looked at David’s new situation.
“Well, here’s your good news David,” Ahmed said. “While your income has gone up, it won’t affect your rent for the first year, thanks to the Earned Income Disregard.”
“What’s that?” David asked.
Ahmed explained, “An Earned Income Disregard helps people with disabilities who get Section 8 and then get jobs. It means that your rent won’t go up because of your higher income during the first year after you start working. In the second year after you start working, only half of your higher income due to work affects your rent. That gives you some time after you start working to adjust.”
David was quickly approved for the Earned Income Disregard, so the first year after getting his job, David’s rent didn’t go up at all.
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Frequently Asked Questions
What is Section 8?

Section 8 is a program that helps people with very low-income
Note: If you have a Section 8 Housing Choice Voucher, you may end up paying more than 30% to 40% of your income for rent if the landlord raises the rent after you move in.
To qualify for Section 8, you must:
- Have a very low household income
- Be a U.S. citizen or an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents
- Not have had problems in the past with federally-funded housing programs, such as being evicted or committing fraud
To get Section 8, you have to apply at your local public housing authorities (PHAs). Most PHAs have waiting lists, so it’s important to apply to more than one PHA. Some housing authorities post online information about subsidized housing.
What are the income limits for getting Section 8?

Almost all vouchers go to people with very low income. The exact income limits are different depending on the number of people in your household and where you live.
The U.S. Department of Housing and Urban Development (HUD) has the income limits for your situation.
Does Section 8 have asset limits?

No. To be eligible for Section 8 there is no maximum on the value of the assets you own. However, when the housing authority figures out your income, it counts some of your assets as income.
Note: The growth of the investments in an ABLE account is not counted as income. Learn more about ABLE accounts.
Besides income, what do housing authorities look at for getting Section 8 housing?

The public housing authority looks at your entire application to see if you qualify, so make sure to fill out the forms completely and carefully. You may be more likely to qualify for Section 8 if you:
- Have a disability
- Have children
- Are age 62 or older
- Are a U.S. Armed Services veteran, widow, or widower
- Are experiencing homelessness
- Are in a shelter
What’s the difference between the Section 8 housing choice voucher program and Section 8 project-based housing?

The housing choice voucher program (also called “tenant-based Section 8”) lets you choose any apartment you want, as long as it meets the size and price requirements given to you by your public housing authority.
In Section 8 project-based housing, the local housing authority works directly with the owner of a specific housing unit to make it available to people in the Section 8 program. When one of these privately-owned apartments is empty, the housing authority offers it to someone on the waiting list for Section 8 housing.
Project-based rental assistance provides the same amount of financial assistance as the voucher program, and the application and eligibility requirements are also the same. A big difference between project-based rental assistance and the Section 8 voucher program is that it is not always possible to keep your project-based rental assistance when you move.
Should I apply to more than one housing authority?

Yes, most public housing authorities (PHAs) have waiting lists to get Section 8 benefits, so it’s important to apply to more than one PHA. Unfortunately, some waiting lists are “closed.” That means that the PHA won’t even let you apply. However, you can apply to any housing authority that has an “open” list. By applying to more than PHA, you are more likely to start getting Section 8 benefits sooner — so be sure apply to all of the housing authorities located in areas where you’d be willing to live, and that have “open” waiting lists. (Most housing authorities give preference to people who already live in their areas, so if you apply to a program that isn’t in the area where you live, you may have to wait longer to get a voucher.)
Find your local public housing authorities (PHAs) or use the HUD Resource Locator. Some housing authorities provide online information about subsidized housing.
What happens when I am selected from the waiting list?

When you are selected from the waiting list for a Section 8 housing choice voucher:
- You go through a screening process to make sure you meet the eligibility requirements for the program.
- If you pass the screening, you must attend a meeting at the housing authority, called a “Section 8 Briefing.”
- After the briefing, you have 60 to 120 days (two to four months), to find a rental unit that is affordable and where the landlord accepts the voucher.
When you are selected from the waiting list for Section 8 project-based housing or public housing, you are offered affordable housing in a specific unit. You won’t get to choose the unit you rent.
Can I get reasonable accommodations to help me with the Section 8 application process?

Yes. If your disability makes any part of the application process difficult for you, you can ask for a reasonable accommodation to help you have a chance to participate in the program. Reasonable accommodations could include things like help filling out the application, being given extra time to find rental housing, or assistance finding housing that meets your needs.
What should I do if the housing authority waiting list for my area is closed?

If a waiting list is “closed,” you can’t apply. You need to find other housing agencies in the area that have “open” waiting lists. Find local public housing authorities. Some housing authorities provide online information about subsidized housing.
What should I do if I move or change my phone number after I apply for a housing program?

Tell the housing authority immediately. If the housing authority tries to contact you but can’t find you, they might decide that you don’t want Section 8 and take you off their waiting list. Most housing authorities do not request the post office to forward mail, so it’s very important that you give the housing authority correct contact information.
Who can help me with my Section 8 application?

The housing authority itself is the best source of help with the application. If you decide to get help from someone else, remember that no one should ever charge you for a Section 8 application; it’s illegal to sell a Section 8 application or voucher.
What can I do if my application for a Section 8 voucher is turned down?

You can talk to the housing authority about their decision. However, the housing authority is not required to offer an informal hearing for applicants on every administrative decision. You can also appeal their
How can I find an affordable apartment?

Ask the housing authority for a list of available property owners in its area, and use the Michigan State Housing Development Authority (MSHDA) Housing Locator to search for apartments in your price range.
Can the Section 8 program help me buy a house or pay for my current house?

Yes. Section 8 can give you homebuyer education and mortgage readiness counseling, and may even help you with your down payment, closing costs, and/or mortgage payments. However, not all housing authorities offer this program.
To qualify for this program, called the Section 8 Homeownership Program, you must:
- Be a current Section 8 voucher program participant or eligible for it
- Not currently own a home or have owned one in the last three years
- Not received homeownership help in the past or defaulted on a mortgage
- Attend and complete a homeownership counseling program
- Have full-time employment, if you are not disabled or elderly
The Key to Own Homeownership Program helps families with a rental housing choice voucher change it into a homeownership voucher, or you can apply directly to local public housing authorities that allow homeownership.
What is public housing?

Public housing is rental housing for low-income people that is owned and managed by a local government agency. Eligibility requirements are usually the same as for the Section 8 voucher program. You must:
- Have a low household income
- Be a U.S. citizen or an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents
- Not have had problems in the past with federally-funded housing programs, such as being evicted or committing fraud
To apply for public housing, contact your local public housing authorities (PHAs) or use the HUD Resource Locator. Some housing authorities provide information about subsidized housing online.
Waiting lists for public housing may be long, so to improve your chances of getting housing soon, apply to several housing authorities in the area where you want to live.
I’m homeless. How can I get help finding housing?

Several groups offer special support for people who are experiencing homelessness and have special housing needs. To get help, contact:
Or use the HUD Resource Locator and click on “Find Homeless Resources Near Me."
What is Housing Opportunities for Persons with AIDS (HOPWA)?

If you or a member of your household is living with HIV/AIDS and your household has low income, you may be able to get help with housing costs through the HOPWA program. HOPWA can help with short-term rent and utility payment assistance.
For details, contact your local public housing authorities (PHAs).
If I start working, do I lose my Section 8 or Public Housing?

Not necessarily. Many housing programs have a rule called the Earned Income Disregard (EID) that stops the rent from being increased for the first year after a family member with a disability starts working.
What is an Earned Income Disregard (EID)?

An Earned Income Disregard (EID) is when your public housing authority doesn’t count your income when you first start a job. This means that if you get help with your rent from a housing program and then start working, your rent stays the same for a year, even though you are earning more money. During your second year on the job, your housing authority counts only half of the increase in your income caused by your earnings, so your rent doesn’t go up by as much. This rule means that you can get a job without having to worry about your rent going up immediately.
To qualify for an Earned Income Disregard, you must either:
- Live in public housing, OR
-
Have a disability, AND be in one of the following programs:
- Section 8 Vouchers
- Public housing
- HOME Investment Partnerships program
- Housing Opportunities for Persons with AIDS (HOPWA)
Note: If you were already working before your earnings went up, the EID may not apply. For detailed information on this, see Module 5 of the WIPA & Community Partner Work Incentives Counseling Training Manual.
Who can help me if I am having trouble making my mortgage payments?

If you are having trouble paying your mortgage, there are several programs that can help:
- The Step Forward Michigan Program at 1-866-946-7432 may be able to help you catch up on your mortgage or tax payments.
- Making Home Affordable offers a national hotline with counselors available 24 hours a day, seven days a week at 1-888-995-HOPE (4673).
- The U.S. Department of Housing and Urban Development (HUD) Counseling & Agency Locator Line at 1-800-569-4287 can refer you to a housing counselor who can guide you through the process.
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Common Pitfalls
Only applying to one public housing authority
There are not enough Section 8 vouchers or public housing units to help everyone who needs housing. When you apply to one of these programs, you usually are put on a waiting list. Some areas have very long waiting lists. In order to speed up the process of getting housing, you should apply to as many housing authorities as possible in the areas where you want to live.
Search for local public housing authorities (PHAs).
Not asking for help
If you have difficulty with the application or finding an apartment, tell your housing authority. They can help you. If your disability makes any part of the application process hard for you, the housing authority must provide reasonable accommodations. This might be extra help in filling out the application, extra time finding rental housing, or help to find housing that meets your needs.
Not returning to work because you fear you’ll lose your rental subsidy
If you get Section 8 or live in public housing and have a disability, you can get an Earned Income Disregard (EID) so that you can work without having your rent go up. If you have an EID, for the first year after you start working, the increase in your income caused by work is not counted towards your rent, so your portion of the rent stays the same. In the second year, only half of the amount your income goes up thanks to work is counted. That means, your rent only goes up half as much as it would if you didn’t have an EID.
Not responding to waiting list update letters
Not updating contact information while you are on a waiting list
Not getting expert help when you are having trouble paying your mortgage
If you are having trouble paying your mortgage, or you are already facing foreclosure, it can be hard to figure out what you should do. The first step is to call for help:
- The Step Forward Michigan Program at 1-866-946-7432 may be able to help you catch up on your mortgage or tax payments.
- Making Home Affordable offers a national hotline with counselors available 24 hours a day, seven days a week at 1-888-995-HOPE (4673).
- The U.S. Department of Housing and Urban Development (HUD) Counseling & Agency Locator Line at 1-800-569-4287 can refer you to a housing counselor who can guide you through the process.
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Next Steps
Learn More
Learn more about housing programs in Michigan:
- The Michigan State Housing Development Authority offers details about housing options in Michigan.
- The U.S. Department of Housing and Urban Development (HUD) provides a HUD Resource Locator that lets you search for services near you. HUD also lists housing programs in Michigan and has a field office in Detroit.
- Some housing authorities have subsidized housing information online. You can also get information at public housing authority (PHA) offices.
- You may also qualify for help with your utility bills.
For help finding housing while experiencing homelessness, contact:
- Michigan Coalition Against Homelessness
- Michigan’s Campaign to End Homelessness
- Or use the HUD Resource Locator and click on ‘Find Homeless Resources Near Me.'
Find apartments with affordable rents:
- Ask a local public housing authority (PHA) for a list of available property owners in its area.
- The MSHDA Housing Locator lets you search for apartments by size and price range.
- HUD allows you to search for subsidized housing by city, county, or zip code.
If you are having trouble paying your mortgage, call for help:
- Step Forward Michigan Program at 1-866-946-7432.
- Making Home Affordable national 24/7 hotline at 1-888-995-HOPE (4673).
- U.S. Department of Housing and Urban Development (HUD) Counseling & Agency Locator Line at 1-800-569-4287.
Get legal advice if you have any concerns:
- Disability Rights Michigan (DRM) represents the rights of children and adults with disabilities in Michigan
- The American Bar Association lists providers of free legal services.
Apply for Housing Assistance
To apply for Section 8 housing programs, Public Housing, or HOPWA:
- Contact your local public housing authorities (PHAs), or
- Use the HUD Resource Locator.
If you are a Native American, you may qualify for additional housing programs. Learn more at the U.S. Department of Housing and Urban Development's Eastern/Woodlands Office of Native American Programs.
Benefits Planning Services
If you're currently on SSI, SSDI, or DAC benefits, and you're looking for a job, a trained Benefits Planner can help you avoid problems with your job plan. If you need help or have questions about your situation, you can call the Ticket to Work Help Line at 1-866-968-7842 or 1-866-833-2967 (TTY) Monday through Friday from 8:00 a.m. – 8:00 p.m. EST.
View DB101's full list of experts who can help you understand different benefits.
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Building Your Assets and Wealth
Discover ways to save up money while working.
Programs That Support Work
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Getting Past the Myths: The Truth About Working
Get the facts about how benefits support work.