- HUD is considering a two-year limit on rental assistance programs to reduce fraud and promote self-sufficiency.
- The change could affect 1.4M households, especially working families with children.
- Landlords worry the cap may discourage participation in HUD programs.
- Elderly and disabled tenants would be exempt from the limit.
HUD Pushes for Shorter Assistance Terms
HUD Secretary Scott Turner told Congress in June that federal rental aid has drifted from its original purpose, per GlobeSt. He argued that the programs were meant to offer short-term help—suggesting a two years limit could better reflect that intent.
“HUD assistance is not supposed to be permanent,” Turner said during the hearing.
The proposed policy would limit housing support to two years for most recipients. It would apply to both Section 8 vouchers and public housing subsidies.
Critics Warn of Widespread Displacement
However, many housing advocates fear the change would do more harm than good.
Research from New York University shows that 1.4M households could lose their assistance under the new rule. Many of these are working families with children who already struggle to afford market-rate rents.
In addition, most of these families have already received support for two years or more.
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Landlords Voice Concerns
Landlords are also uneasy. While HUD programs can be complex and paperwork-heavy, they offer stable income and long-term tenants.
If a time limit disrupts that stability, some landlords say they may exit the program. That could further reduce affordable housing supply.
Who Would Be Affected
Importantly, the proposed limit would not apply to everyone.
About half of the 4.9M HUD-assisted households include elderly or disabled residents. These groups would be exempt from the new rules.
Still, the change would affect millions of others. According to HUD data, the average family stays in subsidized housing for six years.
Some Local Experiments Show Mixed Results
Several local housing agencies have tested time limits.
In 2001, Keene, New Hampshire, introduced a five-year cap. Yet it ended the policy before enforcing evictions. Officials feared many families would become homeless.
Meanwhile, San Mateo County in California kept its five-year rule. However, it paired the limit with job training and education programs to help tenants become self-sufficient.
Why It Matters
Ultimately, the debate reflects a tough tradeoff.
On one hand, shorter assistance terms could free up vouchers and cut down waitlists. On the other, they could destabilize vulnerable renters—especially those with low wages and children.
As HUD weighs its options, the housing industry, tenants, and lawmakers are watching closely. Any final decision could reshape how millions of Americans access affordable housing.
