Lease Rates Plummet for Chicago Housing Voucher Holders

Voucher recipients across Illinois are struggling to find housing as challenges in subsidized housing programs grow, the Chicago Tribune reported.

Most subsidies come through the U.S. Department of Housing and Urban Development’s Housing Choice Voucher Program, which allows recipients to pay about 30 percent of their income toward rent while local housing authorities cover the rest.

Yet many recipients are unable to lease units due to hurdles including landlords refusing to accept vouchers, often due to discrimination, and a lack of inventory.

The Chicago Housing Authority’s lease-up rates fell to 31 percent last year, down from 45 percent in 2023. The figure ranged from 61 percent to 77 percent between 2019 and 2022.

Similarly, the North Chicago Housing Authority reported a 50 percent lease-up rate last year, while the Lake County Housing Authority logged 62 percent. Some recipients are still searching for homes, meaning these rates could shift.

The struggle to find housing can be grueling for voucher holders, who may have to sleep in their cars or couch surf, shower at the gym and store personal items at work. Once they are approved for vouchers, the clock is ticking, and time can run out before they find housing.

Some housing authorities are adopting strategies to address the problems. Housing authorities in Waukegan, North Chicago and Lake County last year agreed to allow voucher holders to lease units in any of their jurisdictions, aiming to expand options and increase lease-up rates.

Waukegan and Lake County have also received HUD approval to offer monetary incentives to landlords.

Meanwhile, landlords cite barriers like bureaucratic delays, inspections and a lack of standardization across housing authorities. Some housing providers have called for streamlining the process through faster unit approvals and more consistent administrative standards.

Nationally, about 60 percent of voucher holders are able to lease units, according to New York University’s Furman Center for Real Estate and Urban Policy.

The rates are lower in markets with older housing stock and among recipients of color — two conditions that especially apply in Chicago.

— Judah Duke