The Myth of Spiraling Voucher Costs

Publication Date: June 2004

Publisher: Center on Budget and Policy Priorities (Washington, D.C.)

Author(s):

Research Area: Social conditions

Keywords: Economic inequality; Economic projections; Housing assistance; Housing subsidies

Type: Report

Abstract:

U.S. Department of Housing and Urban Development (HUD) officials and some Members of Congress have expressed concern about “spiraling costs” for “Section 8” housing vouchers. Proposals to make deep cuts in voucher funding and to convert the program to a block grant have been rationalized on the grounds that such far-reaching measures are needed to curb rapidly rising voucher costs that, if left uncontained, would eventually consume the entire HUD budget.

A careful look at the data demonstrates, however, that housing voucher costs are not spiraling out of control and that the claims being made to this effect rest on selective and misleading use of budget data. There has indeed been an upward trend in overall Section 8 costs over the past few years, but much of this cost increase has been due to temporary factors that are now abating. The Congressional Budget Office projects that Section 8 costs will level off in the years ahead.