Why It Matters

A recent CRS report on federal rental assistance programs shows a large gap between housing need and available aid. About half of U.S. renters are cost-burdened, meaning they spend more than 30% of their income on housing, and the lowest-income renters face the highest cost burdens. Federal rental assistance reaches only an estimated one in four eligible households, while waiting lists are common in most communities.

The stakes are particularly acute for low-income households. The lowest-income renters carry the heaviest cost burdens. In 2023, 11.5 million of the nation’s 46 million renter households were very low-income, cost-burdened, and did not receive rental assistance. HUD also reported a record 8.46 million households with worst-case housing needs, which generally include very low-income renters who receive no housing assistance and either spend more than half their income on housing or live in severely inadequate conditions.

The Big Picture

The federal government spent approximately $68 billion on rental assistance in 2025, serving about 4.9 million households through programs administered primarily by the Department of Housing and Urban Development and the Department of Agriculture. Housing Choice Vouchers accounted for $38.3 billion and assisted about 2.3 million households. Project-Based Rental Assistance accounted for $17.2 billion and assisted about 1.2 million households.

The gap between eligible households and assistance remains substantial. In 2023, there were 19.14 million very low-income renter households and about 4.8 million federally assisted renter households. CRS uses those figures to estimate that roughly one in four eligible households receives federal rental assistance, although it cautions that the comparison is only a rough measure because some assistance programs serve households with higher incomes and some very low-income households may not otherwise qualify.

The report, originally published in November 2024 and updated Aug. 13, defines federal rental assistance as ongoing housing assistance that generally requires recipients to pay no more than 30% of their income toward housing costs. Housing Choice Voucher recipients may choose to pay up to 40% of their income in the first year, or more in later years, to obtain or retain a higher-cost unit.

The report also identifies a discrepancy in federal housing data. More households self-report receiving housing assistance in Census survey data then appear in federal rental assistance program records. The report says possible explanations include renters mistakenly reporting that they receive assistance or households receiving state- or locally funded aid that is not part of the federal rental assistance system.

Federal rental assistance is separate from programs that subsidize the development or operation of affordable housing, including the Low-Income Housing Tax Credit, HOME Investment Partnerships grants, and Continuum of Care grants. Those programs may still be used alongside federal rental assistance. A Housing Choice Voucher recipient, for example, may live in a property financed through the Low-Income Housing Tax Credit.

The Bottom Line

Federal funding for rental assistance is insufficient to serve all eligible households, and waiting lists for assistance are common in most communities. About half of renters are cost-burdened, while an estimated three-quarters of eligible households do not receive federal rental assistance.

The federal government spent approximately $68 billion supporting 4.9 million assisted households in 2025, but the number of very low-income renters remains far larger than the number receiving assistance. Federal rental assistance can also operate alongside programs such as the Low-Income Housing Tax Credit, HOME, and Continuum of Care grants.

Access the Legis1 platform for comprehensive political news, data, and insights.

Spot something wrong? Report an issue with this article