Section 8 vs. Affordable Housing: Explaining the Differences in Hawaii Programs

Imagine you’ve been on a waiting list for five years. You finally get the call, only to realize you applied for the wrong list.

In Hawaii, the term “Section 8” is often used as a catch-all for anything related to low-income living. But for renters and landlords, confusing Section 8 with Affordable Housing is a mistake that can cost you a home.

They are not the same thing.

• Section 8 is a coupon (Voucher) you carry in your pocket.
• Affordable Housing is a building (Store) with a price cap.

At Hawaii Affordable Properties, Inc. (HAPI), we manage both. We see applicants wait years for a Section 8 voucher, unaware that they could have moved into a “Tax Credit” affordable apartment next week without one.

Here is the insider breakdown of how these programs actually work in the islands.

Key Takeaways

• The “Coupon” vs. The “Store”: Section 8 (HCV) pays the rent for you. Affordable Housing (LIHTC) just offers lower rent that you pay yourself.
• The “2.5x Rule”: For Affordable Housing, you actually need to earn enough money to qualify. Being “too poor” is a common reason for rejection.
• The “Golden Ticket”: If you have a Section 8 voucher, you can use it at an Affordable Housing property to get the best of both worlds.
• New Law: As of 2023 (Act 310), most landlords in Hawaii generally cannot refuse to rent to you just because you have a voucher

Section 8 (The Housing Choice Voucher)

The “Golden Ticket.”

When people say “Section 8,” they usually mean the Housing Choice Voucher (HCV). This is the holy grail of rental assistance.

• How it works: You find a private landlord (a house in Kalihi, a condo in Ewa Beach) willing to rent to you. You pay roughly 30% of your income towards rent. The government (HPHA or City & County) pays the rest directly to the landlord.
• The “40% Rule” Trap: Many tenants think, “If the rent is too high, I’ll just pay the extra out of my own pocket.”
  • The Reality: You generally cannot. At move-in, if your share of the rent exceeds 40% of your income, the Housing Authority will forbid you from renting that unit. This is to stop you from becoming “house poor.”
• The Inspection Hurdle: Before you can move in, the unit must pass an HQS (Housing Quality Standards) inspection. If the landlord has a wobbly railing or a window that doesn’t stay open, the lease is denied until it’s fixed.

Affordable Housing (LIHTC)

The “Discounted Store.”

This is technically the Low-Income Housing Tax Credit program. You do not need a voucher to live here.

• How it works: The government gave the developer tax credits to build the apartment. In exchange, the developer agrees to cap the rent.
• The Math: If the market rent for a 2-bedroom in Honolulu is $2,800, a LIHTC property might charge **$1,600**.
• The “Minimum Income” Shock: This is where most people get rejected.
  • The Trap: Because the government doesn’t pay the rent (you do), the landlord needs proof you can afford it. Most properties require you to earn 2.5 times the monthly rent.
  • Example: To rent that $1,600 apartment, you must earn at least **$4,000/month**. If you earn less, you don’t qualify—even though it’s “affordable housing.”

Project-Based Section 8 (PBS8)

The subsidy stays with the unit.

This is where it gets confusing. Some buildings have Section 8 contracts tied to the building itself.

• How it works: You move in, and you only pay 30% of your income. The government pays the rest to the owner.
• The Difference: If you move out, you lose the assistance. You cannot take it with you. The benefit stays with the apartment for the next tenant.
• Who it’s for: These waitlists are often specific to Seniors (Kupuna) or Families. Unlike the regular Section 8 lottery, these waitlists open and close frequently. You should check HAPI Listings regularly for these openings.
  

Can I Move to Hawaii with Section 8?

The “Portability” Secret.

This is one of the most common questions we receive: “Can I take my Section 8 voucher from California/Texas/New York to Hawaii?”

The Answer: Yes, usually. This is called “Portability.”

How to do it:

1. Notify your current caseworker: Tell them you want to “Port Out” to Hawaii.
2. Contact the Receiving PHA: You will send your packet to either HPHA (Statewide) or the City & County of Honolulu.
3. The Catch: Hawaii’s “Payment Standards” (the max rent the voucher covers) might be lower than the actual market rent here. A voucher that covers a 2-bedroom in Ohio will likely only cover a studio (or nothing) in Honolulu.
4. The “12-Month” Rule: If you are new to the voucher program, you typically must live in your original city for 12 months before you are allowed to move to Hawaii.