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Three Models of Rental Subsidies

Project-Based24

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.

Tenant-Based25

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.

Sponsor-Based

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..