Section 8 vouchers and LIHTC apartments are the two most common ways Americans access affordable rental housing—but they work in fundamentally different ways. Here is how to tell them apart and which might fit your situation.
The core difference: tenant-based vs. project-based
Section 8 vouchers are tenant-based. The assistance belongs to you; you can use it at any participating private rental and often take it with you when you move. LIHTC is project-based. The affordability is built into specific apartment communities; the discount stays with the building, not the renter.
How rent is calculated
With a voucher, you pay about 30% of your adjusted income and the voucher covers the rest up to a payment standard. In a LIHTC unit, rent is a fixed, capped amount tied to Area Median Income (commonly 50% or 60% AMI)—it does not flex with your exact income, though you must be under the income limit to qualify.
Income limits explained
Both programs use HUD's Area Median Income figures, published each year for each metro and county. "Very low income" is generally defined around 50% of AMI and "extremely low income" around 30%. LIHTC units commonly target households up to 60% of AMI. Because these thresholds are local and adjust for household size, the same income can qualify in one city but not another.
How you apply
Vouchers come from your local public housing agency, usually via a waiting list. LIHTC apartments are rented directly through the property's management office, each with its own application and waitlist. Many renters pursue both at once.
Can you use both together?
Yes. A LIHTC community can also accept Housing Choice Vouchers, letting a voucher holder rent an already income-restricted unit. This combination can push your out-of-pocket rent even lower, though availability depends on the property.
Which is better for you?
- Want flexibility to choose or change units? A voucher offers mobility—see how Section 8 works.
- Want a predictable rent without waiting for a voucher? A LIHTC community may be faster to access.
- Not sure you qualify? Review what income-based housing is and check limits for your area.
To find income-based and HUD-assisted properties near you, browse housing by state.