Why It Matters

About one-third of all U.S. households rent their homes, and demand already far exceeds supply of assisted rental units. But rents have climbed far faster than other costs, outpacing inflation by a significant margin, according to a recent Congressional Research Service (CRS) report on rental housing. Average rent prices in 2025 were 10.62 times their 1965 levels, while all other non-shelter goods and services rose just 8.68 times over the same period.

The Big Picture

The federal government funds several rental housing assistance and production programs, each designed to either directly subsidize rents or impose affordability requirements. These include the Housing Choice Voucher program, Section 8 Project-Based Rental Assistance, Section 202/811 for elderly and disabled populations, rural programs under the Department of Agriculture, and the Capital Magnet Fund, among others.

But coverage remains limited. The share of rental units receiving federal support ranges from roughly 10 percent to 20 percent depending on overlap assumptions. The lower figure assumes all grant- and loan-assisted units receive tax credits and overlap with rental assistance programs. The higher assumes no overlap between programs.

Some federal rental programs no longer assist new units, though existing subsidized units remain. Additionally, some rental units may not have active subsidies or loans but are still subject to affordability restrictions.

This means roughly 80 percent of renters lack federal support, despite many being eligible for assistance, underscoring a significant gap between housing need and available federal resources.

The Bottom Line

Federal rental assistance reaches only a fraction of the market. The mismatch between demand for affordable housing and federal program capacity has become acute. Policymakers face mounting pressure to expand assistance or production programs to close the gap.

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