"Income-based housing" is an umbrella term for rental homes where what you pay, or who can rent, is tied to your income. Several different programs fall under it, and they work in very different ways. Understanding the distinctions helps you apply to the right places.
1. Public housing
Public housing is owned and operated by local public housing agencies (PHAs). Rent is typically set at about 30% of a household's adjusted income. Because the buildings are publicly managed, you apply directly through the PHA that runs them.
2. Housing Choice Vouchers (Section 8)
Vouchers help you rent on the private market. The subsidy follows the tenant: you pay roughly 30% of income and the voucher covers the rest up to a local payment standard. Learn more in our guide to how Section 8 works.
3. LIHTC (tax-credit) properties
The Low-Income Housing Tax Credit funds privately owned, income-restricted apartment communities. Here the subsidy is attached to the building, not the tenant: rents are capped at levels affordable to households earning, for example, 50% or 60% of Area Median Income, and you must fall under the income limit to qualify. See Section 8 vs. LIHTC for a side-by-side comparison.
4. Project-based rental assistance
Some buildings have subsidies tied to specific units under long-term contracts with HUD. As long as you live in a covered unit, you pay an income-based rent—but the assistance does not move with you if you leave.
How to tell them apart
The key questions are: Does the help follow you or the unit? and Is rent a percentage of your income, or a fixed capped amount? Vouchers and public housing charge a share of income; LIHTC charges a capped rent regardless of your exact income. Many properties combine programs. To explore real income-based and HUD-assisted properties near you, browse housing by state.