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Three Models of Rental Subsidies


The subsidy is tied to the physical unit, or "project." People living in such units pay a reduced rent. Project-based subsidies are not portable: They stay with the unit. The subsidy covers the remaining cost of that unit.


The subsidy is tied to the tenant. Qualified tenants can rent their unit of choice from landlords willing to accept the voucher. Tenants pay a reduced rent, and the remainder of the rent is subsidized directly to the landlord by the voucher program. Tenant-based vouchers are portable, meaning that tenants can take their voucher with them when they move.


The subsidy is typically provided by a nonprofit that has received funds to buy or lease units, which are then made available to clients. The subsidies stay with the nonprofit sponsor..