[cosmie]

Section 8 isn't restricted to just subsidized housing developments[1]. It can also be used as a subsidy to any private market rental as well, where the landlord is paid the subsidy from the Section 8 program and the tenant is responsible for any rental costs above that (if any).

That said, it's a hassle for landlords. They have a separate contract and commitments with the local housing authority that disburses the subsidy, in addition to the lease with the tenant. And are subject to annual home inspections by that housing authority. And most importantly in a booming market, there are legal caps to how much a tenant's annual income can be dedicated to housing and utilities. Between the income limits to qualify for section 8 and the cap on income that can go to housing, the amount that an individual can actually spend on top of the subsidy is fairly limited and may not bridge the gap to going-rates for private rentals in an area. Between that and the stigma attached to the quality of tenants using section 8, it's common for private landlords in a good market with a standard or better unit to pass on a section 8 applicant and hold out for another tenant with fewer strings attached to the transaction.

[1] https://www.hud.gov/topics/housing_choice_voucher_program_se...