42 U.S.C. § 1490r: Rural housing voucher program

Summary

When Congress provides the money, the Secretary must run a rural housing voucher program to help very low-income people live in rental housing in rural areas. The Secretary can set payments using the area's fair market rent. Each month the voucher pays the difference between the payment standard and 30% of the family's monthly adjusted income. But the monthly payment cannot be more than the amount the rent (including allowed utilities for separately metered units) is above 10% of the family's monthly gross income. The Secretary must work with programs under sections 1485 and 1490m and may contract for not more than 5,000 units in any fiscal year. The Secretary may give vouchers to low-income households (including those not already getting rental aid) who live in properties financed under sections 1484, 1485, or 1486 that were prepaid, foreclosed, or whose mortgage matured after September 30, 2005, if the household is staying longer than the remaining time on their lease when that event occurred.

Title 42, §1490r

The Public Health and Welfare, Source: USLM XML via OLRC

(a)In general

To such extent or in such amounts as are approved in appropriation Acts, the Secretary shall carry out a rural housing voucher program to assist very low-income families and persons to reside in rental housing in rural areas. For such purposes, the Secretary may provide assistance using a payment standard based on the fair market rental rate established by the Secretary for the area. The monthly assistance payment for any family shall be the amount by which the payment standard for the area exceeds 30 per centum of the family’s monthly adjusted income, except that such monthly assistance payment shall not exceed the amount which the rent for the dwelling unit (including the amount allowed for utilities in the case of a unit with separate utility metering) exceeds 10 per centum of the family’s monthly gross income.

(b)Coordination and limitation

In carrying out the rural housing voucher program under this section, the Secretary shall—

(1)coordinate activities under this section with activities assisted under section 1485 and 1490m of this title; and

(2)enter into contracts for assistance for not more than 5000 units in any fiscal year.

(c)Eligibility of households in section 1484, 1485, and 1486 projects

The Secretary may provide rural housing vouchers under this section for any low-income household (including those not receiving rental assistance) residing for a term longer than the remaining term of their lease that is in effect on the date of prepayment, foreclosure, or mortgage maturity, in a property financed with a loan under section 1484 or 1485 of this title or a grant under section 1486 of this title that has—

(1)been prepaid with or without restrictions imposed by the Secretary pursuant to section 1472(c)(5)(G)(ii)(I) of this title;

(2)been foreclosed; or

(3)matured after September 30, 2005.

Notes & Related Subsidiaries

Editorial Notes

2026—Subsec. (c). Pub. L. 119–101 added subsec. (c).

Statutory Notes and Related Subsidiaries

Adjustment to Rural Development Voucher Amount Pub. L. 119–101, title V, § 502(k),

July 11, 2026, 140 Stat. 924, provided that: “(1) In general.—Not later than 2 years after the date of enactment of this Act [

July 11, 2026], the Secretary of Agriculture shall issue

Regulations

to establish a process for adjusting the voucher amount provided under section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) after the issuance of the voucher following an interim or annual review of the amount of the voucher. “(2) Interim review.—The interim review described in paragraph (1) shall, at the request of a tenant, allow for a recalculation of the voucher amount when the tenant experiences a reduction in income, change in family composition, or change in rental rate. “(3) Annual review.—“(A) In general.—The annual review described in paragraph (1) shall require tenants to annually recertify the family composition of the household and that the family income of the household does not exceed 80 percent of the area median income at a time determined by the Secretary of Agriculture. “(B) Considerations.—If a tenant does not recertify the family composition and family income of the household within the time frame required under subparagraph (A), the Secretary of Agriculture—“(i) shall consider whether extenuating circumstances caused the delay in recertification; and “(ii) may alter associated consequences for the failure to recertify based on those circumstances. “(C)

Effective Date

.—Following the annual review of a voucher under paragraph (1), the updated voucher amount shall be effective on the 1st day of the month following the expiration of the voucher. “(4) Deadline.—The process established under paragraph (1) shall require the Secretary of Agriculture to review and update the voucher amount described in paragraph (1) for a tenant not later than 60 days before the end of the voucher term.” Amount of Voucher Assistance Pub. L. 119–101, title V, § 502(m), July 11, 2026, 140 Stat. 925, provided that: “Notwithstanding any other provision of law, in the case of any rural housing voucher provided pursuant to section 542 of the Housing Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance payment for the household on whose behalf the assistance is provided shall be determined as provided in subsection (a) of such section 542 [42 U.S.C. 1490r(a)], including providing for interim and annual review of the voucher amount in the event of a change in household composition or income or rental rate.”

§1490r Rural Housing Voucher Program