Some families pay only 30 percent of their income for rent, while others pay more. The federal government picks up the rest. HUD sets those rents below the median rents in any given community, to ensure that Section 8 tenants search for modest, rather than luxury, apartments. But in practice, HUD's rents don't keep pace with the ups and downs of the market. As a result, HUD overpays landlords in some parts of the country, while here, it pays too little.
Similar gaps exist throughout the Bay Area.
Some landlords stick with the Section 8 program for altruistic reasons. But others want more than HUD can pay. Landlords holding about 10 percent of the total Section 8 housing stock in San Mateo County left the program in 1996 and 1997, said Derek White, housing programs director at the San Mateo County Housing Authority. They're also trying to be more landlord-friendly, said Robert Rosenberg, whose Fremont real estate company manages more than 30 Section 8 apartments. She didn't want to move.