When Kimberly Loper, 28, learned that she would finally receive a Section 8 voucher—a highly sought-after federal rental assistance for low-income families—she had been on the waitlist for three long years.

At that moment, she was homeless with her partner and two sons—a 7-year-old and an infant, whose first home was a shelter in Brooklyn, New York. The voucher felt like their ticket to stability after enduring years of hardship.

However, there was a stipulation: if they couldn’t find housing within two months, the voucher would expire and be transferred to the next family on the list. In June, after months of endless applications and rejections, they lost it.

“When we eventually got the voucher, it was a cause for celebration,” Loper remarked. “We had no idea how tough it would be to secure an apartment that would accept us. I feel completely stuck, like I’ll never escape this situation.”

Loper’s experience is shared by thousands across the nation who are losing their federal housing vouchers without ever utilizing them. Until recently, the extent of this issue was not fully understood. However, a significant study by the Furman Center for Real Estate and Urban Policy at New York University revealed that in 2022, almost half of the families given housing vouchers could not put them to use.

This problem has been escalating. From 2018 to 2022, the percentage of households unable to utilize their vouchers grew from 35% to 45%.

“The situation is critical,” stated Ingrid Gould Ellen, director of the Furman Center and co-author of the study. “It’s tragic that, after what is essentially winning the lottery by receiving a voucher, many families are stuck in a cycle of searching without success.”

The U.S. Department of Housing and Urban Development (HUD), which manages the voucher program, does not mandate that the numerous local agencies administering the vouchers track or enhance these disappointing rates.

Instead, the federal government encourages housing agencies to fully utilize their funding. Consequently, similar to airlines overbooking flights to ensure full capacity, these agencies frequently distribute more vouchers than they can sustain, anticipating that many families will be unable to find housing.

Douglas Rice, a program adviser in HUD’s Office of Public Housing Voucher Programs, expressed that HUD views these high failure rates as a significant concern and acknowledged that local housing agencies have “no direct motivation” to improve them. However, he noted that HUD has initiated some recent measures to address this, including boosting the monetary value of the vouchers to keep up with rising rents.

“We are very dedicated to this issue,” said Rice. “Honestly, the housing market has been quite challenging in recent years. However, the fact that success rates are lower than desired is a longstanding issue with the voucher program, and it is time for HUD and housing authorities to resolve it.”

YSL News spoke with six households who either lost their vouchers or saw them revoked before securing housing. They found themselves in dire situations—living in homeless shelters, public parks, inexpensive motels, couch surfing, or crammed into overcrowded homes—made even harder by the emotional rollercoaster of receiving a voucher only to subsequently lose it.

In New York City, Samantha Brown, 35, obtained a voucher after escaping an abusive relationship. While pursuing her nursing studies, she has been sleeping on friends’ couches and, at times, on a park bench, ever since her voucher expired in December, temporarily halting her future.

In Coeur d’Alene, Idaho, 41-year-old Jessica Hicks lost her voucher back in 2015 and has been without stable housing ever since. The emotional toll has kept her from applying for assistance again.

“I can’t go through that emotional turmoil again,” she stated. “What’s the use of having a voucher if there’s no place to live?”

In New York City, Tiffany De Hoyos, 39, was living with her mother, father, and three daughters in a cramped two-bedroom apartment when she received her voucher. It was her opportunity to give her children more space. However, after months of searching, her voucher expired in May.

De Hoyos expressed frustration: “After waiting two years to receive this voucher, only to lose it, is incredibly disappointing. If you’re given a voucher, what resources are available? Where can you find landlords and properties willing to accept it?”

Why is it so difficult to use Section 8 vouchers?

The Section 8 voucher program began in the 1970s as a response to the government’s demolition of poorly maintained public housing complexes that had suffered for years from neglect and mismanagement.

It introduced a new concept of tenant-based housing assistance. Instead of being confined to a public housing project, families could use these vouchers to rent affordable homes from private landlords throughout their city. Rent was limited to around 30% of their income, with the federal government covering the remainder, subject to localized limits. This initiative aimed to counteract the detrimental effects of concentrated poverty and racial segregation by providing low-income families with more housing choices.

Today, this program is the largest rental assistance initiative in the United States, aiding over 2.3 million households. However, shifting public housing to the private sector has introduced various challenges.

For one, the program depends on private landlords willing to accept tenants with vouchers, a choice that many landlords refuse to make.

Some of this resistance stems from discrimination, while other landlords cite concerns over the program’s bureaucratic hurdles, like the required inspections before a tenant can move in, which can result in lost rent as units sit vacant.

Meanwhile, tenants—many being elderly, disabled, or experiencing homelessness—often lack support while searching for housing.

After enduring long wait times to receive their vouchers, they may only have around 60 days to find a home before it expires, during which less than one-third manage to secure housing, according to the Furman Center’s analysis.

Moreover, vouchers do not cover additional expenses such as security deposits, broker fees, or application costs. On GoFundMe, numerous families with vouchers are actively seeking donations because they found suitable homes but lack the funds for the security deposit.

“The idea that giving someone a voucher means they can effectively navigate the rental market and negotiate with landlords to find housing simply isn’t playing out on a large scale,” noted Mandy Chapman Semple, a national consultant on homelessness.

Prior to the recent Furman Center analysis, which is the first of its kind since three smaller studies concluded in 2001, little research existed on the effectiveness of the voucher program. The Furman Center examined data from more than 1,300 public housing authorities for the years 2018 and 2019, and recently released findings for 2022.

The researchers discovered that, across the nation—from rural Nevada to small towns in North Carolina to large cities—many people were losing their vouchers before they could utilize them at alarming rates.

In 2022 alone, they tracked nearly 90,000 households that received vouchers yet were unable to use them. This figure likely undercounts the actual number since it only reflects about three-quarters of vouchers allocated that year, given issues with data reliability and the exclusion of certain housing authorities.

Mandy Gould Ellen from the Furman Center commented, “I still believe that the voucher program is very effective and has achieved much of what its creators intended. The low success rates highlight the need for us to closely examine the program and look for ways to streamline it for both tenants and landlords.”

Why do housing authorities distribute excessive vouchers?

Housing authorities frequently issue more vouchers than they can financially sustain at any given moment because they are aware that some families will likely be unable to utilize them.

This approach is part of a complicated strategy designed to ensure that available voucher funding does not remain unspent, especially when so many families are in need of assistance.

“From the housing authority’s viewpoint, they have an endless list of applicants. If one person can’t use their voucher, they can give it to the next,” explained Semple. “They certainly prefer that the initial recipient utilizes it, but their focus is on volume.”

This led to the situation in 2022 where nearly half of families could not secure housing. According to HUD representatives, housing authorities likely issued around double the vouchers compared to the funding available for actual housing slots.

However, this system does not always function smoothly.

In February 2022, Austin Wardell and his family faced eviction from their home of 14 years in Fontana, California.

After their landlord passed away, they found themselves in a difficult position due to the expensive reverse mortgage which led the bank to foreclose on the property.

With no other options, the family applied for a housing voucher, stored their belongings, and relocated to a room at a Motel 6 along with their pets.

As they waited for news regarding their voucher, Crystal continued her work at an elementary school, serving as a library aide every morning.

for the last 25 years, Austin has been caring for his father full-time, who, due to seizures in 2018, now suffers from brain damage, a fractured back, and requires supplemental oxygen.

In May 2023, after waiting over a year, they received the exciting news that they had finally obtained a housing voucher.

Austin expressed their joy, stating, “We were on cloud nine.” They quickly began looking for apartments.

However, just a month later, they received a disappointing letter: all available slots for the vouchers had been filled. Even though they still had 79 days left before their voucher expired, their case was closed.

Austin described the situation as “a harsh blow,” saying, “It took away all our hope. Since then, we have struggled significantly.”

For the past year, they have continued to stay at a Motel 6 alongside Interstate 10. Their finances come mainly from Frank’s disability payments, Crystal’s part-time earnings, and unpredictable contributions from a GoFundMe campaign. Should their funds dwindle, they plan on placing Frank in a nursing home while they live out of their car.

According to representatives from the Housing Authority of the County of San Bernardino, the Wardell family’s voucher was part of a limited number of emergency vouchers distributed during the pandemic. These vouchers had to be utilized by a specific deadline, or else they would be reclaimed by the federal government.

Consequently, the housing authority issued more vouchers than there were available slots. Once the program reached its capacity, 33 families, including the Wardells, lost their vouchers while still looking for homes.

“Our goal is to make sure every voucher is utilized because that’s our main objective,” said Rishad Mitha, the deputy executive director of the housing authority.

Will Fischer, a researcher at the Center on Budget and Policy Priorities, pointed out that housing authorities often access reserve funds when more individuals utilize their vouchers than anticipated, making the Wardells’ experience relatively uncommon.

Usually, families lose their vouchers due to challenges in navigating a competitive rental market, especially when time runs out.

As long as every voucher is used, housing authorities see little reason to offer additional support.

“Housing authorities do not have the funding to assist clients throughout the search process,” Mitha explained. “The program simply isn’t designed that way.”

Nonetheless, some locations have found success in providing additional support.

What makes Boston’s housing model successful?

When the Boston Housing Authority opened its housing voucher waitlist in the early 2000s, David Gleich recalls an extensive line of applicants that seemed to stretch endlessly.

Managing Boston’s voucher program, Gleich was aware that only a fortunate few would qualify for a voucher and many of those still might not be able to use it.

However, the situation has improved significantly over time.

According to data from the housing authority, last year, 88% of families receiving vouchers were able to successfully use them—a rate significantly higher (by more than 30 percentage points) than the national average in 2022.

Boston’s success comes in spite of having one of the highest rental costs and most competitive housing markets in the U.S. In 2022, it recorded the lowest vacancy rate among the ten largest metro areas in the country.

Gleich credits much of this improvement to a straightforward adjustment in the authority’s method.

Instead of merely giving out vouchers and leaving recipients to fend for themselves, each tenant is connected with someone who assists them in their search for a home, according to Gleich.

“They put in tremendous effort to help individuals find housing and explore every possible option,” he remarked. “They are relentless until the voucher is utilized because they understand how important this opportunity is.”

In general, housing authorities do not get HUD funding for this supportive service. However, Boston’s housing authority has formed partnerships with local schools, shelters, and other community organizations to bridge that gap.

Instead of opening their waitlist

Every few years, the housing authority used to experience a surge of applications, but now it collaborates with organizations that help identify families in need and assists them in securing and maintaining housing over time.

“This approach has made our entire process much more efficient,” Gleich stated. “We anticipated that this would significantly boost our success rates.”

In Boston, additional measures have been implemented, such as extending the initial time frame for voucher holders to locate housing to 120 days. Furthermore, to allow renters the opportunity to reside in higher-cost areas, the value of the voucher now varies by zip code instead of having a uniform rate for the entire city.

Other cities have witnessed remarkable improvements by connecting voucher holders with designated “navigators.”

A recent analysis in Seattle revealed that assistance with the housing search not only enhanced the frequency at which families utilized their vouchers but also increased the percentage of families moving to more affluent neighborhoods from 15% to 53%.

Much like Boston, Seattle also relied on external organizations to fulfill this role.

“This indicates to me that, on a national scale, we are not performing as well as we could be,” said Stefanie DeLuca, a sociologist at Johns Hopkins University, who co-wrote the Seattle study.

“Our experiences in competitive housing markets show that with the right support for families in their housing searches and outreach to landlords, we can achieve much better outcomes.”