Most of these programs have targets for households with  extremely low incomes—30 percent or less of their area median incomes. More Than Half of Low-Income Veteran Renter Households Had Housing Affordability Problems

According to our analysis of ACS data, of the 4.3 million veteran  households that rented their homes, an estimated 2.3 million, or about 53  percent were low-income in 2005. More Than Half of Low- Income Veteran Renters Had Problems Affording Their Rents

According to our analysis of ACS data, an estimated 1.3 million low- income veteran households, or about 56 percent of the approximate 2.3  million such households, had rents that exceeded 30 percent of their  household income in 2005 (see table 2). The extent of housing affordability problems among low-income veteran  renter households varied significantly by state in 2005 (see fig. In  2005, an estimated 53,000, or 2 percent, of low-income veteran renter  households lived in inadequate housing. HUD Rental Assistance Programs Do Not Take Veteran Status into Account When Determining Eligibility or Subsidy Amounts

HUD’s major rental assistance programs are not required to take a  household’s veteran status into account when determining eligibility and  calculating subsidy amounts. Most Contacted Housing Agencies and Owners of Project- Based Properties Did Not Offer Veterans’ Preference for Admission to HUD’s Rental Assistance Programs

Currently, HUD’s policies give public housing agencies and owners of  project-based properties the discretion to establish preferences for certain  groups when selecting households for housing assistance. Most of the 41 public housing agencies we contacted used a preference  system for admission to their public housing and housing choice voucher  programs, but less than half offered a veterans’ preference. Similarly, of the 40 housing agencies  that administered the housing choice voucher program, 34 used admission  preferences, and 13 employed a preference for veterans. According to all of the performance-based contract administrators we  contacted, owners of project-based properties that they oversee generally  did not employ a veterans’ preference when selecting tenants. At Least 250,000 Veteran Households Received HUD Rental Assistance, but Veterans Were Less Likely to Receive Such Assistance Than Other Low-Income Households

Low-income veteran renter households were less likely to receive HUD  rental assistance than other households. Thus, the level of veteran demand for rental  assistance may be lower than that of nonveteran households. Our August 2007 report contains additional information on the  demographic and income characteristics of veteran and nonveteran  households, as well as the extent to which HUD programs take veteran  status into account when determining eligibility and subsidy amounts.
Why GAO Did This Study

Veterans returning from service in Iraq and Afghanistan could increase demand for affordable rental housing. Households with low incomes (80 percent or less of the area median income) generally are eligible to receive rental assistance from the Department of Housing and Urban Development's (HUD) housing choice voucher, public housing, and project-based programs. However, because rental assistance is not an entitlement, not all who are eligible receive assistance. This testimony, based on a 2007 report, discusses (1) the income status and demographic and housing characteristics of veteran renter households, (2) how HUD's rental assistance programs treat veteran status (whether a person is a veteran or not) and whether they use a veteran's preference, and (3) the extent to which HUD's rental assistance programs served veterans in fiscal year 2005. The 2007 report discussed in this testimony made no recommendations.

What GAO Found

In 2005, an estimated 2.3 million veteran renter households had low incomes. The proportion of veteran renter households that were low income varied by state but did not fall below 41 percent. Further, an estimated 1.3 million, or about 56 percent of these low-income veteran households nationwide, had housing affordability problems--that is, rental costs exceeding 30 percent of household income (see map for state percentages). Compared with other (nonveteran) renter households, however, veterans were somewhat less likely to be low income or have housing affordability problems. HUD's major rental assistance programs are not required to take a household's veteran status into account when determining eligibility and calculating subsidy amounts, but eligible veterans can receive assistance. The majority of the 41 largest public housing agencies that administer the housing choice voucher or public housing programs had no veterans' preference for admission. The 13 largest performance-based contract administrators that oversaw most properties under project-based programs reported that owners generally did not adopt a veterans' preference. In fiscal year 2005, an estimated 11 percent of all eligible low-income veteran households (at least 250,000) received assistance, compared with 19 percent of nonveteran households. Although the reasons for the difference are unclear, factors such as differing levels of need for affordable housing among veteran and other households could influence the percentages.