Can You Get Section 8 While Owning a Home? Rules and Exceptions

Owning a home usually disqualifies you from Section 8, but not always. Under current HUD rules, a Public Housing Agency (PHA) cannot issue a Housing Choice Voucher to a family that owns residential property suitable for them to live in, and a separate cap bars assistance when household net assets exceed $105,574 in 2026.¹² Several exceptions exist, and current voucher holders can sometimes use their subsidy to buy a home instead of renting one.

The Rule That Blocks Most Homeowners

The Housing Opportunity Through Modernization Act (HOTMA) added a restriction that did not exist under the old Section 8 rules. Under 24 CFR 5.618, a PHA may not provide tenant-based or project-based Section 8 assistance to a family that meets all three of these conditions: a present ownership interest in residential real property, a legal right to live in it, and legal authority to sell it under state or local law.¹ The property must also be suitable for the family to occupy. When those conditions line up, owning the home blocks eligibility at initial application and at every income recertification.

This is what surprises applicants who last checked the rules before 2024. Under the older rules, a primary residence was simply excluded from the asset calculation, and owning a home did not automatically end your eligibility. That changed with the HOTMA final rule, which took effect January 1, 2024. HUD has given PHAs a phased compliance window running through January 1, 2027.³ Some PHAs are enforcing the restriction now; others have not adopted it yet. If you own property and want to apply, ask your local PHA directly whether they have implemented the HOTMA asset rules.

Exceptions That Let a Homeowner Still Qualify

The restriction has two sets of carve-outs. The first identifies families who are exempt regardless of the property’s condition:

Victims of domestic violence, dating violence, sexual assault, or stalking. The PHA must accept self-certification.
Families actively offering the home for sale.
Families whose home is jointly owned with a non-household member who lives in it.
Families receiving assistance through the HCV homeownership option or for a manufactured home.¹

The second set focuses on whether the property is genuinely suitable for the family to occupy. Even if you own outright, you can show the property is not suitable if any of the following apply:

The home does not meet the disability-related needs of a family member, such as physical accessibility or proximity to accessible transportation.
The home is too small for the family’s size.
The location creates a hardship, such as an unreasonable commute to a family member’s job or school.
The home is unsafe because of its physical condition, and the problem cannot be easily fixed.
State or local law prevents the family from residing in the property.¹

The family carries the burden of proof. Gather documentation before your PHA interview: a listing agreement if the home is for sale, medical records and a doctor’s letter supporting accessibility needs, photos and inspection reports showing unsafe conditions, or a copy of the deed showing joint ownership with a resident co-owner.

The Separate $105,574 Asset Cap

Even if an ownership exception applies, a second rule can still disqualify you. Section 8 assistance is prohibited when a family’s total net assets exceed $100,000, adjusted annually for inflation. For 2026, that cap sits at $105,574.² The cap covers everything combined: bank accounts, investments, retirement funds, and equity in any real property. PHAs must deny or terminate assistance for any family over the limit.⁴

Consider a domestic violence survivor who owns a home worth $150,000 with a $60,000 mortgage. Her equity is roughly $90,000. If that equity plus other savings stays under $105,574, the cap is not a problem and the DV exemption clears the ownership rule. Add $20,000 in a savings account, though, and total net assets hit $110,000. The cap then disqualifies her regardless of the exemption.

Income from owned property also counts toward household income when the PHA calculates whether you fall within Section 8 limits. Rental income from a second home is treated like wages.⁵ When total net assets exceed $52,787 and actual return on a specific asset cannot be calculated, HUD imputes a return using the passbook savings rate of 0.40% for 2026.²

Disclose the Property; Do Not Hide It

You must report all assets on your application and at every recertification, including real estate, bank accounts, and investments. HUD verifies this information against federal, state, and local databases.⁶ Omitting a property or underreporting its value is fraud.

The penalties are severe. A family caught concealing assets can be evicted, required to repay every dollar of overpaid assistance, fined up to $10,000, imprisoned for up to five years, and permanently barred from future housing assistance.⁶ If you own property and think an exception applies, disclose it and make your case with documentation. That is far safer than hoping the property never surfaces.

Using a Voucher to Buy a Home Instead

A different path exists for families already holding a Housing Choice Voucher: the HCV homeownership program lets you redirect the subsidy toward buying a home rather than renting. Not every PHA offers it, and families must clear extra requirements beyond standard voucher eligibility.⁷

To qualify, a family must be a first-time homeowner, or a person with disabilities for whom homeownership is a reasonable accommodation. Adult members who will own the home must earn at least the federal minimum wage multiplied by 2,000 hours annually, which comes to $14,500 at the current $7.25 rate. For disabled families, the threshold is lower: twelve times the monthly federal Supplemental Security Income benefit for an individual.⁸ Families must also complete homeownership counseling with a HUD-certified counselor before closing.

What the Subsidy Covers

HUD calculates the monthly assistance payment the same way as for a rental voucher: the payment standard minus the family’s total tenant payment. The subsidy then offsets homeownership expenses including mortgage principal and interest, real estate taxes, and homeowner’s insurance.⁹ Any costs above the assistance payment are yours. Maintenance, utilities, and repairs outside HUD’s subsidy calculation come out of pocket, so budget beyond the mortgage.

How Long the Assistance Lasts

Homeownership voucher assistance does not run forever. For most families, the maximum term is 15 years when the mortgage has a term of 20 years or longer, and 10 years otherwise. Elderly families who qualified as elderly at the start of assistance, and disabled families at any point during assistance, are exempt from these time limits.⁹

1
eCFR. 24 CFR 5.618 – Restriction on Assistance to Families Based on Assets
2
HUD User. 2026 HUD Inflation-Adjusted Values and Passbook Rate
3
Federal Register. Housing Opportunity Through Modernization Act – Implementation of Sections 102, 103, and 104 Extension
4
eCFR. 24 CFR 982.552 – PHA Denial or Termination of Assistance for Family
5
eCFR. 24 CFR 5.609 – Annual Income
6
HUD OIG. Fraud Bulletin – Is Fraud Worth It
7
U.S. Department of Housing and Urban Development (HUD). HCV Homeownership Program
8
eCFR. 24 CFR 982.627 – Homeownership Option – Eligibility Requirements for Families
9
eCFR. 24 CFR Part 982 – Section 8 Tenant-Based Assistance – Housing Choice Voucher Program