As the first state to create a state rental voucher program, Massachusetts continues to recognize housing assistance as a necessary component of our social safety net. Households at or below 80% AMI may have some of their housing costs offset by subsidies, or other government assistance, in order to afford housing they otherwise may not be able to afford, or to maintain their existing housing. Accounting for housing-related economic assistance is important to understand the true cost and benefits of renting or homeownership. However, the current lack of needed housing supply, specifically affordable housing, impacts the ability for this crucial resource to better address unmet need amongst eligible households on waitlists for these programs. Furthermore, the median household income across the programs highlighted below are below 30% AMI.
Massachusetts and the federal government provide financial aid, primarily in the form of rental housing vouchers, to low-income families and individuals in rental units other than public housing. Rental housing vouchers cover the difference between what a renter household can pay, often 30% of their total income, and what a landlord is charging for rent. There are different types of housing vouchers, with different funding sources, eligibility, and usage limits. There are long waitlists across both federal and state programs as appropriated funding falls well short of covering the entire eligible population. Furthermore, the current limits in housing supply have created significant challenges for voucher programs as rising rental costs outpace program funding, while EOHLC has had to increase payment standards and implement other costly measures to ensure vouchers are competitive in the market.
Federal Rental Vouchers: The Housing Choice Voucher Program (HCVP), often referred to as Section 8, is the federal government’s main program for supporting very low-income families, older adults, veterans, and individuals with disabilities across varying HCVP programs. Federal rental assistance is provided and overseen at both the state level through HLC and local level through Public Housing Authorities (PHAs). As of October 2024, there are 91,968 leased HCVPs administered throughout Massachusetts, with 22,422 or 24% administered by HLC and the rest by about 100 PHAs.
| Calendar Year | Leased and Searching Vouchers (including targeted programs) | Cost Per Voucher Per Month |
|---|---|---|
| CY20 | 22,777 | $1,094 |
| CY21 | 22,929 | $1,159 |
| CY22 | 23,343 | $1,246 |
| CY23 | 24,050 | $1,397 |
| CY24 | 25,285 | $1,585 |
As of the end of 2024, 49% of HCVP households had a head of household with a disability, and 55% had at least one household member with a disability. At least 31% of households had a non-white head of household. The average family income was $20,913, and the average tenant rent share was $501.
State Rental Assistance: The Massachusetts Rental Voucher Program, administered by HLC, provides rental assistance in the form of vouchers to assist individuals and households in affording the housing costs of market-rate units. Generally, rental assistance program participants pay 30% of their income for rent and HLC pays the landlord the remaining cost up to the applicable payment standard. HLC uses small area (zip-code level) payment standards to better match the rental market. Some vouchers are mobile and allow the participants to choose the type and location of their unit. Other vouchers are attached to specific units and are not mobile. The smaller Alternative Housing Voucher Program (AHVP) works similarly, but is targeted by households headed by non-elderly, disabled individuals.
| Fiscal Year | MRVP Leased Vouchers | Cost Per Voucher per Month |
|---|---|---|
| FY17 | 8,268 | $790 |
| FY18 | 8,232 | $867 |
| FY19 | 8,535 | $911 |
| FY20 | 8,883 | $967 |
| FY21 | 9,001 | $1,001 |
| FY22 | 9,423 | $1,153 |
| FY23 | 9,527 | $1,343 |
| FY24 | 9,982 | $1,574 |
| October 2024 | 10,359 | $1,654 |
| Projected End FY25 | 10,935 | $1,767 |
In 2024, the average annual income for a household in MRVP was $21,683 and $18,663 for a household in AHVP. In 2024, The average tenant rent share in MRVP was $455, and the average subsidy payment was $1,574 . For AHVP, the average tenant rent share was $435, and the average subsidy payment was $1,459. 48% of households in MRVP had at least one household member with a disability. All households in AHVP have at least one household member with a disability. 24% of households were headed by someone of Hispanic or Latino heritage in MRVP and 9% in AHVP.
| Head of Household Race | Percentage of MRVP Households | Percentage of AHVP Households |
|---|---|---|
| White | 63% | 71% |
| Black or African American | 21% | 15% |
| Asian | 2% | 1% |
| American Indian or Alaska Native | 1% | 1% |
| Native Hawaiian or Pacific Islander | <1% | 0% |
| Did Not Disclose | 7% | 12% |