Can Section 8 Stabilize the Housing Market? Experts Say Yes

As rent prices surge and the U.S. housing shortage grows, housing experts are revisiting a question long ignored: Can Section 8 help stabilize the rental market?

Many believe it can—but only if housing authorities expand access, reduce red tape, and improve how the program works for renters and landlords alike.

A row of brick apartment buildings in an urban neighborhood with a "For Rent" sign in the foreground, capturing the atmosphere of a tight housing market.

Section 8 has potential—but it’s underutilized

The Housing Choice Voucher Program, commonly known as Section 8, helps low-income families pay rent in the private market. It subsidizes a portion of their monthly rent, allowing them to secure housing in neighborhoods with better access to jobs, schools, and healthcare.

However, in 2025, the program can’t keep up with rising demand. Local housing authorities face outdated funding formulas, restrictive rent caps, and shrinking landlord participation.

“The program could stabilize entire communities,” said a housing researcher at the Urban Institute. “But we’re not giving it the support it needs.”

Rent inflation continues to outpace assistance

Across the country, the rental market remains volatile. Even as home prices cool slightly in some regions, rents keep rising. In cities like Phoenix, Charlotte, and Austin, average rent has jumped between 8–12% year-over-year.

Low-income renters can’t compete in this environment. Many hold vouchers that no longer cover local rents, forcing them to move farther away—or risk losing their housing altogether.

Barriers are pushing the program off track

Several factors limit Section 8’s effectiveness:

Landlords reject vouchers in states without source of income protection laws
Local authorities lack funds to expand voucher access
Rent caps often fall short of market trends
Bureaucratic delays and inspection backlogs frustrate landlords and renters

Only about 1 in 4 eligible households receive a voucher, according to data from the Center on Budget and Policy Priorities. Millions of families remain stuck on waitlists or are priced out of the voucher system entirely.

Local efforts offer some hope

Cities and counties across the U.S. are experimenting with fixes. Los Angeles recently launched a landlord incentive program that pays $2,500 to property owners who lease to voucher holders. Washington, D.C. sped up inspections to cut wait times and improve move-in rates.

These programs aim to improve landlord retention and reduce voucher expiration—two key metrics in ensuring stability for low-income renters.

Stabilizing the market through Section 8

Section 8 alone won’t fix the housing crisis. But experts say it can help bring balance to overheated markets—especially if governments use it strategically.

Renters with vouchers stay in homes longer, reduce vacancy rates, and help landlords maintain consistent income. Those benefits ripple across neighborhoods, especially in areas with rapidly rising costs and limited housing supply.

“Vouchers aren’t the problem,” said a HUD spokesperson. “The problem is how few people can actually use them.”

By increasing funding, updating rent standards more frequently, and enforcing anti-discrimination laws, local and federal leaders could turn Section 8 into a much stronger stabilizing force.

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Can Section 8 Help Stabilize the Housing Market? Experts Say It’s Not Being Used Enough