Affordable government housing programs for seniors

Finding a place to live that feels safe, comfortable, and financially manageable can make a big difference in how you plan for the years ahead. The good news is that there are programs designed to help make housing more affordable for people with limited incomes.

If you or someone you care about is exploring options, it can help to start with a few government housing programs that may lower monthly costs and make long-term planning feel a little more manageable.

For many older adults, finding affordable housing isn't always easy. Rent can consume the lion's share of a limited retirement income. Contrary to popular belief, unless a person has a disability or requires long-term care in a skilled nursing or memory care community, neither Medicare nor Medicaid will pay for senior housing on an ongoing basis.

Several government programs can significantly reduce housing costs for eligible older adults. Here are three Housing and Urban Development (HUD) programs that may help:

Option 1: Low-income housing tax credit (LIHTC)

This federally funded program has been available since 1986. Although it isn't specifically intended for senior living, its goal is to ensure there's enough low-income housing to meet the population's needs. According to HUD, which created the LIHTC, an average of 105,000 units became available each year from 1995 to 2011.

The building owner chooses how many units to set aside for residents with low incomes. To participate in the program and qualify for tax credits, owners accept the rent amount specified by HUD. An older adult who meets HUD's income criteria can search their local area for HUD-approved housing that offers the housing tax credit.

Option 2: Housing choice voucher program

More commonly known as Section 8, this affordable housing option allows residents with low incomes to rent "safe and reasonable" apartments or other accommodations. Under Section 8, landlords accept 30% of a family's or individual's income as full rent payment.

To meet the income guidelines, your individual income must not exceed 50% of the median income in your county or metropolitan area. This allows the program to function effectively in different locations. Section 8 eligibility isn't based on age, so it isn't specifically a senior housing program.

Option 3: Section 202

Also funded by HUD, the Section 202 Supportive Housing Program is specifically intended for adults age 62 and older who meet the "very low income" requirement. It's the only government-subsidized affordable housing program offered exclusively for older adults. In effect for more than half a century, Section 202 currently funds more than a quarter-million senior living units.

Section 202 is structured similarly to Section 8. Participants pay 30% of their income toward rent, and the HUD subsidy covers the balance.

One benefit of Section 202 is that this housing option may combine features of both independent living and assisted living. For example, some Section 202 housing developments provide help with activities of daily living (ADLs), along with meals and transportation. Others may offer free blood pressure screenings and social events, such as movie nights. Section 202 housing may also be quieter than general subsidized housing because children typically visit rather than live there.

If you're selected for the Section 202 program, you'll sign a lease and a tenant rental assistance contract that verifies your income. Because income can change over time, the contract requires annual recertification to confirm that you're still eligible for assistance. If your income exceeds the very low-income limit, you'll no longer receive a rental subsidy. However, you can remain in Section 202 housing for as long as you wish.

Find housing that’s right for you

Rising housing costs and rising care costs for older adults, can make looking for your place to live a challenge. Remember, there are services that can help. If you have questions, try to reach out to your local Area Agency on Aging, Council on Aging, or other programs in your area.