Currently, the two main Section 8 programs are tenant-based vouchers and project-based vouchers.
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Public Housing Authority can choose to project-base up to 25% of its total vouchers, meaning that the vouchers are linked to a particular apartment. Eligible families pay 30% of their income while living in the apartment, but cannot take that voucher with them to another complex or private residence.
Under the tenant-based program, eligible families with a certificate or voucher find and lease a unit in the private sector and pay a portion of the rent (based on income, generally around 30%). The local housing authority pays the owner the remaining rent, subject to a cap referred to as "Fair Market Rent" (FMR) which is determined by HUD. The owner cannot charge a Section 8 tenant more than FMR, even if the owner does so for non-Section 8 tenants in similar units.