So many people out there have less than their desired income to get the apartment they want. But they ALSO have to find someplace that will accept their credit score and income level.
Lucky for them, there is Assistance based housing for them. These organizations usually tend to adjust rent based on the gross income a person earns over a period of time, say a month.
If these people qualify for an Income Subsidy or other housing help, there are entire facilities out there, on the market, that cater to JUST this demographic.
Let’s go through the Income-Based Apartment Renting.
Apartments Income Based
An Income-based apartment is one where the price of the rent per month is calculated on the amount of money the tenant earns each month. The remainder of the bill is picked up by an assistance organization of some type.
Some of these assistance organizations are going to be your standard HUD or Section 8 offices, which help low-income people with obtaining rent. Typically, these governmental organizations pay an amount based completely on the person’s current income, and then the tenant is responsible for picking up the rest of the tab.
This is primarily what Section 8 does. In short, they bridge the gap between what the tenant can afford to pay and what the actual rent is.
Depending on where you live is also going to have an impact on how much the voucher or program is going to give you. Say, for instance, you live downtown Manhattan or Chicago, the cost of living is going to be DRAMATICALLY more than if you are looking for an income-based apartment in Pocatello, Idaho.
The Housing of Urban Development has a calculator that can help you figure out if you qualify for a Section 8 or other program based on the amount of money you make and the specific location you are living.
Apartments With Low Income
Low-income apartments are different than Income-based apartments. Low income simply means that the complex is going to be small, probably more run down, and in a poor neighborhood in town.
Sorry guys, that’s just the facts. Obviously, if people have a choice, they are going to choose to live in more prestigious and quiet parts of town over the alternative.
These low-income apartment complexes MAY take government aid from the programs I mentioned above, but that’s not necessarily the case for all of them. Because with the government, the program comes government scrutiny. That means the landlord has to let the government in to see each unit they are going to get a voucher for, make sure it is approved by the government, and then take whatever the government is going to give them for the unit.
This is not an attractive proposition for a ton of landlords. If they do have one of the lower-income apartment complexes in town, they may simply encourage their tenants if they are having problems paying the rent to go to a private housing assistance organization instead. Many times, these organizations will be much easier to work with than the government.
A simple google search for “housing assistance programs in my area” will bring up the different programs that are available in your area.
Apartments That Are Income Based
Apartments that are Income Based are those that take the tenant’s income into account and then provide a voucher for a percentage of the cost of the monthly rent.
Remember that you have to qualify for both income and area restrictions to be eligible for a Housing Authority program. The rules are different for different counties, but you must have a significantly lower income than the majority of the residents in your area to qualify.
On top of that, some programs like that of Michigan’s will only give a voucher of up to 30% of the cost of the monthly rent. This means that the tenant will have to make up for the other 70% of the rent each month.
Different programs have different rules, and as I mentioned, there are several different programs, both public and private that you can apply for. Be ready to have your income, social security number, and proof of income ready to go before you start to apply.
Apartments That Are Income Restricted
Income Restricted Apartments are another name for Income Based Apartments. The rent due to the tenant at the end of the month is going to be determined by how much income they make each month. An assistance program makes up the difference in what the tenant can pay and the full amount of rent.
Income restricted apartments have become easier and easier to come by recently. A tenant can now go on Rent.com or Apartments.com and search specifically for Income Restricted or Income Based Apartment complexes when they are doing their search.
This allows a tenant to know which complexes actually accept government money or outside assistance programs. Many apartment complexes don’t due to the amount of headache it brings, but there are a lot that do. Being able to quickly and easily search and filter for exactly what you are looking for makes it easy to find an income-restricted apartment complex that works for you.
You have a couple of choices if you are in a low-income position to rent an apartment. There are going to be some apartment complexes that will rent to you at a low price, just know that you are going to get what you pay for with this, the complex probably isn’t going to be on a good side of town, and not as safe as other places either. But if you are in a bind, there are places that will rent to you.
The other option is to apply for an income-restricted or income-based apartment, in which the rent is split up in two each month. One part is paid by the government or other assistance programs, and the other is paid by the tenant themselves.
