The USDA Rural Development (RD) Voucher

Demonstration Program is a 1-year rental subsidy program. Its purpose is to protect tenants of USDA MultiFamily Housing (Section 515) properties who have

had their USDA loans foreclosed or prepaid between

Oct. 1, 2005, and Sept. 30, 2006.

RD Vouchers are available to eligible low-income tenants living in a USDA-financed property at the time of

foreclosure or prepayment. 

The voucher supplements the tenant's rent payment.

Tenants may use the voucher at the former USDAfinanced property, or take it to any non-subsidized

rental unit in the United States that passes U.S

Department of Housing and Urban Development

(HUD) housing quality standards and where the owner

will accept it. The voucher may not be used for rental

units in subsidized housing, such as Section 8 or public housing, in which its use would result in a double

subsidy.

To receive an RD Voucher, tenants must apply to a

designated Public Housing Authority (PHA), 3rd party

contractor, or their local USDA Rural Development

office. 

Frequently Asked Questions

Q. What does the RD Voucher do?

A. The voucher is a subsidy to help pay the rent for eligible tenants after the RD loan is paid off. 

Q. How much is the voucher worth?

A. The amount of the voucher is the difference

between the tenant contribution for rent (the Net

Tenant Contribution) and the Comparable Market Rent

for that unit. For example, if an eligible tenant pays

$300 a month, and the Comparable Market rent is

$475, the voucher amount for that tenant will be set at

$175.

Q. Can I just take the voucher amount and spend it

any way I want?

A. No. The voucher is good only for rent; it is paid

directly to the landlord.

Q. Who is eligible to receive a voucher? 

A. Section 515 tenants whose adjusted income is less

than 80 percent of the local median income when the

USDA loan is paid off are eligible. 

Q. Is the RD Voucher only for tenants who receive

Rental Assistance from the USDA?

A. No. All tenants with incomes less than 80 percent of

area median income are potentially eligible to receive a

voucher, regardless of whether or not they are currently receiving Rental Assistance.

Q. If I move, and if the rent is higher than my current

rent, will the voucher amount be increased? 

A. The amount of the voucher generally will not

change. If you move to a higher rent unit, you will have

to pay any increase in the rent. If you move to a lower

rent unit, the voucher amount is not changed, but your

contribution may be lower. However, the amount of the

voucher cannot be more than the rent.

USDA Rural Development Housing Vouchers

Answers for Tenants

Rural Housing and Community Programs
Q. What are the advantages of obtaining an RD

Voucher? 

A. The advantages of the voucher are: 

Q The voucher may help keep the rent affordable if

you don't move when your lease expires, because it

pays the difference between what you paid under

Section 515 and the Comparable Market Rent; 

Q If you want to move to another rental unit in the

same town or even a different town, the voucher

and the voucher amount will go with you;

Q Even if the landlord agreed to keep your tenant contribution fixed for as long as you stay where you are

living now, the voucher will permit you to move.

Q. When can I get an RD Voucher?

A. Generally, you can apply for a voucher 60 days

before your lease expires; or, in some cases, the landlord may let you break your lease early so you can

apply for a Voucher. Or, you can apply for a voucher up

to 60 days after your lease expires. You must apply

before September 30, 2006. 

Q. How long is the voucher good?

A. The voucher payment is good for 1 year from the

date you start using it.

Q. If this is confusing, can I get any help?

A. Your USDA Rural Development local office will provide more information. The letter from Rural

Development informing you about the loan prepayment

will give you the address and phone number of the

local office. 

For More

Information

Further information is available through State and local

offices of USDA Rural Development. 

Or you may contact the USDA Multi-Family Housing

Portfolio Management Division in Washington, DC at:

USDA Voucher Program

1400 Independence Avenue SW

Mail Stop 0782

Washington, DC 20250

PA 1873

June 2006

The U.S. Department of Agriculture (USDA) prohibits

discrimination in all its programs and activities on the

basis of race, color, national origin, age, disability, and

where applicable, sex, marital status, familial status,

parental status, religion, sexual orientation, genetic

information, political beliefs, reprisal, or because all or a

part of an individual's income is derived from any public

assistance program. (Not all prohibited bases apply to

all programs.) 

Persons with disabilities who require alternative means

for communication of program information (Braille,

large print, audiotape, etc.) should contact USDA's

TARGET Center at (202) 720-2600 (voice and TDD).

To file a complaint of discrimination write to USDA,

Director, Office of Civil Rights, 1400 Independence

Avenue, S.W., Washington, D.C. 20250-9410 or call

(800) 795-3272 (voice) or (202) 720-6382 (TDD).

USDA is an equal opportunity provider and employer."