A U.S. Census Bureau report released last fall provided a sobering fact: In 2023, nearly half of the country’s 42.5 million renter households were rent-burdened, meaning they spent more than 30% of their income on rent.
A new report released Monday by Zillow reveals that while rent vouchers help ease the burden for cash-strapped renters, there are 17 million more severely rent-burdened households — defined as those who spend more than 50% of their income on rent — than there are available vouchers.
What’s more, about 30% of households that receive housing vouchers fail to locate a rental unit that accepts them, according to Zillow.
The Housing Choice Voucher Program, also known as Section 8, is administered by the Department of Housing and Urban Development. The HUD vouchers subsidize rent costs by establishing a rent ceiling, which is typically 30% of a voucher holder’s income. The difference between the cost of the rental unit and the rent ceiling is then paid directly to the landlord of an eligible property.
According to Zillow, the availability and value of the vouchers did not keep up with demand during the pandemic. While the situation has improved since the pandemic ended, there are still four times more severely rent-burdened households than vouchers available.
Among the 100 largest metropolitan areas in the U.S., cities with the most rent-burdened households include Orlando, Fla.; Austin, Texas; Phoenix; Lakeland, Fla.; and Las Vegas, according to Zillow.
To help increase the opportunities for voucher-eligible renters to find suitable housing, Zillow advocates for legislation that prohibits discriminatory rental practices.
“By advocating for bills that protect against income-based discrimination, Zillow aims to ensure equal access to housing opportunities for all individuals, regardless of their financial circumstances,” the report states.
