The Benefits and Costs of the Section 8 Housing Subsidy Program: A Framework and Estimates of First-Year Effects

This paper provides estimates for a comprehensive set of social benefits and costs associated with the federal Housing Choice Voucher (Section 8) program. The impact categories for which we provide empirical estimates include the value of the voucher to recipients; additional services and public benefits induced by voucher receipt; improvements in children's health, education, and criminal behaviors; the costs of voucher provision; the labor supply impacts on voucher recipients; and community effects. These estimates rest largely on empirical analyses of the effect of voucher receipt on several recipient and taxpayer behaviors and outcomes that occur in the first year of voucher receipt. The analysis distinguishes benefits and costs accruing to program participants, nonparticipants including taxpayers and property owners and society as a whole. Our analysis suggests that the program is likely to meet the efficiency standard of positive net social benefits. (C) 2011 by the Association for Public Policy Analysis and Management.