Federal Policy Changes Can Help More Families With Housing Vouchers Live in Higher-Opportunity Areas
The Housing Choice Voucher (HCV) program, which is federally funded and run by more than 2,100 state and local housing agencies, helps about 2.2 million low-income households -- nearly half of which have minor children in the home -- pay for modestly priced housing they find in the private market. Housing Choice Vouchers enable families to afford decent, stable housing, avoid homelessness, and make ends meet. They also can enable children to grow up in better neighborhoods, enhancing their chances of long-term health and success. When black families use housing vouchers, for example, their children are twice as likely as other poor black children to grow up in low-poverty neighborhoods and are less likely to grow up in extremely poor areas. Still, 315,000 children in families using vouchers lived in extremely poor neighborhoods in 2017.(1) Many families with vouchers would like to move to safer, higher-opportunity areas with good schools, and vouchers could do much more to help them do so.
Public housing agencies have flexibility under current HCV program rules to implement strategies to help more low-income families live in better neighborhoods. But without changes in federal policy to encourage agencies to take such steps and to modify counter-productive policies -- and without reliable funding to maintain the number of families receiving HCV assistance and to administer the program effectively -- there's little reason to expect significantly better results.
This paper briefly reviews research on why the type of neighborhood in which children grow up matters to their future and current data on where children in families that have vouchers live. It then describes four sets of interrelated federal policy changes that would help more families in the HCV program live in higher-opportunity neighborhoods:
* Help interested families use vouchers to live in high-opportunity areas.
* Create strong incentives for housing agencies to improve location outcomes. Federal policy should provide incentives for agencies to reduce the share of families using vouchers in extreme-poverty areas and to increase the share residing in low-poverty, high-opportunity areas. HUD could do this by rewarding agencies that help families move to high-opportunity areas (by paying these agencies additional administrative fees), by giving added weight to location outcomes in measuring agency performance, and by reinforcing these "carrots" through implementation and enforcement of the 2015 fair housing rule.
* Modify policies that discourage families from living in lower-poverty communities. Some HCV program policies impede families from moving to low-poverty areas and thereby unintentionally encourage families to use their vouchers in poor neighborhoods, which may undermine their children's future success. For example, families' rental subsidies are generally based on rental costs of modest housing over an entire metropolitan area, so they're often too low for neighborhoods with low poverty, low crime, and strong schools. HUD can address this problem by effectively implementing the Small Area
* Minimize jurisdictional barriers to families' ability to choose to live in high-opportunity communities. In most metropolitan areas, one agency administers the HCV program in the central city and different agencies serve suburban cities and towns, which often impedes families' efforts to use vouchers in higher-opportunity areas. HUD can substantially reduce these jurisdictional barriers by encouraging agencies in the same metropolitan area to unify their program operations and by reducing financial disincentives for agencies to encourage moves across jurisdictional lines (known as "portability" moves).
Some families will choose to remain in their current neighborhood -- in order to remain close to their current job, their family, or child care, for example -- even if the barriers to moving to areas with more opportunities are removed. But the policy changes listed above could enable many more families and their children to significantly improve their lives and would make a modest but important step forward in reducing intergenerational poverty.
These changes alone, of course, will by no means solve the problems associated with concentrated poverty.(2) Other initiatives are also critical, including efforts to preserve affordable housing in communities where gentrification and other forces would otherwise push poor families away from improving opportunities. Better strategies are also needed to increase incomes, enhance safety, create healthier environments, and improve educational performance in very poor areas.(3) In the meantime, improving the HCV program's performance in helping families live in better neighborhoods is an attainable near-term goal that policymakers should pursue aggressively.
Neighborhoods Influence Children's Well-Being and Long-Term Success
Where families live largely determines the quality of their children's schools, the safety of the streets and playgrounds, and the characteristics of their neighbors. It also can affect adults' access to jobs,(4) transportation costs to work, access to fresh and reasonably priced food and other basic goods and services, and the distance between child care and jobs.(5)
A compelling body of research shows that growing up in low-poverty neighborhoods with good schools improves children's academic achievement and long-term chances of success, on average, and reduces intergenerational poverty. Studies have also consistently found that, on average, living in high-poverty neighborhoods with low-performing schools and high rates of violent crime harms families' well-being and children's long-term outcomes.(6) In light of these findings, federal housing policy should, wherever possible, enable low-income families -- particularly those with young children -- to live in high-opportunity neighborhoods, if they choose to do so.
Groundbreaking Studies Strengthen Evidence of Neighborhoods' Influence
A groundbreaking 2015 study by Harvard economists
The Chetty-Hendren-Katz study found that young boys and girls in families that used a voucher to move to lower-poverty neighborhoods were 32 percent more likely to attend college and earned 31 percent -- nearly
Earlier MTO studies further revealed that living in low-poverty neighborhoods has strong positive effects on adults' mental and physical health. Adults in families that used an MTO voucher to move to lower-poverty neighborhoods reported 33 percent fewer instances of major depression, compared to those without MTO vouchers, and higher scores on measures of subjective well-being, such as happiness. Adults who moved with MTO vouchers also had much lower rates of extreme obesity and diabetes.(9) Parental depression can negatively affect children's well-being as well as be debilitating for the adults themselves: studies show that parental depression (and other stress-related problems, as explained below) is associated with poor social development and poor physical, psychological, behavioral, and mental health for children, particularly young children.(10)
See chart here (https://www.cbpp.org/research/housing/federal-policy-changes-can-help-more-families-with-housing-vouchers-live-in-higher).
The MTO studies reinforce the conclusions of earlier research. In a study of low-income children living in public housing and attending elementary schools in
Studies Connect Exposure to Violence and Extreme Poverty to Worse Outcomes for Children
The rigorous studies led by Chetty, Schwartz, and others have strengthened the consensus among researchers that neighborhoods significantly influence children's chances of academic and economic success.(13) Thanks to studies in several areas, researchers are also piecing together a nascent understanding of how extreme-poverty neighborhoods worsen children's outcomes, although much work remains to be done.(14)
A seminal study by
In another series of studies, Sharkey and his colleagues examined the impact of neighborhood violence on children's cognitive and academic performance. One study found that when preschool children were assessed within a week of a homicide occurring near their home, they were less able to control their impulses and pay attention, and they scored lower on pre-academic vocabulary and math tests.(16) Another study comparing the standardized test performance of
While these studies directly examined the short-term effects of neighborhood violence, they have implications for the long-term success of students who are exposed to repeated incidents of violence.(17) Supporting this conclusion is a more recent study by Sharkey and Gerard Torrats-Espinosa, which found that children who grew up in communities with high rates of violent crime had significantly lower incomes as young adults. Chetty and his colleagues found a similar relationship between violent crime and children's later economic success in their study of families that moved across communities.(18)
Toxic Stress Research Explains Some Links Between Neighborhoods and Child Well-Being
These findings dovetail with the growing research about the harmful effects of "toxic stress," or the activation of the body's stress response system when a child experiences frequent, persistent, or excessive fear or anxiety due to exposure to abuse, neglect, violence, or severe hardship -- particularly when the child doesn't receive adequate adult support in coping with the stress. While much of the research has focused on the effects of child abuse and family dysfunction, researchers believe that exposure to neighborhoods of concentrated disadvantage -- particularly those where violent crime is more common -- may also be a contributing factor.
Toxic stress affects children's brain development, early learning, and their body's stress response system in ways that alter their cognitive development and physical health over the longer term.(19) Toxic stress affects brain development in the areas that regulate emotion and executive function, for example, the latter of which includes the ability to create and follow plans, focus attention, inhibit impulses, and incorporate new information -- abilities essential to children's success in school. Toxic stress has also been linked to physical changes that increase the risk of long-term health problems such as heart disease.(20)
So compelling is the research on toxic stress that the
Further research is essential to better understand the specific mechanisms by which neighborhoods influence children's well-being. But the extant body of work provides powerful evidence that neighborhoods have a substantial impact on their chances of long-term success.
Data Show Vouchers Have Limited Effect on Where Children Live
The Housing Choice Voucher program helps about 2.2 million low-income households pay for modestly priced, decent-quality homes in the private market.(22) It assists more families with children than public housing and Project-Based Rental Assistance, the other two major rental assistance programs, combined.(23) While the program helps families afford decent housing and make ends meet - which has a significant impact on these families, as research shows(24) - its impact on the neighborhoods in which they live has been limited, and is well short of the program's potential.(25) Even so, it has performed substantially better than HUD's project-based rental assistance programs in enabling more low-income families with children to live in lower-poverty neighborhoods and avoid extreme-poverty areas.(26)
Roughly 1 in 8 families with children participating in the HCV program in 2017 (13.6 percent) used their vouchers to live in a low-poverty area -- that is, one where fewer than 10 percent of residents are poor. Poor black, Hispanic, Native American, and Pacific Islander families with vouchers were more likely to live in low-poverty neighborhoods than such poor families overall. Among families using vouchers, poor black children were twice as likely, and poor Hispanic children were 36 percent more likely, to live in low-poverty neighborhoods in 2017 than poor black and Hispanic children overall. In contrast, poor white and Asian children in families with vouchers were less likely to live in low-poverty neighborhoods than poor white or Asian children overall.(27)
See chart here (https://www.cbpp.org/research/housing/federal-policy-changes-can-help-more-families-with-housing-vouchers-live-in-higher).
Also, having a housing voucher may reduce the likelihood that poor children of color live in an extreme-poverty neighborhood, where 40 percent or more of the residents are poor. Poor black, Asian, Native American, and Pacific Islander children using vouchers are less likely to live in an extreme-poverty neighborhood than all poor black, Asian, Native American and Pacific Islander children. For example, in 2017, 16.7 percent of poor black children using vouchers lived in extreme-poverty neighborhoods, almost a third less than the figure for poor black children overall. Conversely, poor white, non-Hispanic children using vouchers were more likely to live in an extreme-poverty neighborhood than poor white children overall.(28)
As noted, 315,000 children in the HCV program live in extreme-poverty neighborhoods.(29) This shows that the program isn't delivering adequately on its potential to expand children's access to good schools in safe neighborhoods that encourage upward mobility, or to help families live outside of extremely poor neighborhoods that are more prone to violence and other conditions that undermine children's health and future success. The program can and should do much more to help families avoid living in neighborhoods that likely diminish children's outcomes and to help families remain in lower-poverty or improving neighborhoods.
Policy Recommendations
Some families don't use their vouchers to reside in lower-poverty, safer, diverse neighborhoods because they want the stability of remaining in their current neighborhoods or close to support networks and current jobs. But many families want to move to higher-opportunity areas, or are largely unaware of opportunities in unfamiliar neighborhoods and would seek to live in them if they had more information.(30) Many also need assistance from program administrators to identify landlords willing to accept vouchers in communities where vouchers are infrequently used and rental vacancies are low. In addition, local voucher subsidy caps are often too low to enable families to afford units in high-opportunity areas, and other program policies can limit voucher holders' available choices.(31)
The policy framework of the HCV program largely assumes that having a voucher opens up the choice of units to rent just like added income would, and that poor families are aware of the housing options that a voucher makes available. But as researchers
While lack of moderately priced rental units in low-poverty neighborhoods is a constraint in some areas,(35) in most large metro areas there isn't a supply barrier preventing a much larger share of families from using their vouchers to rent units in areas that would likely be better for their children.(36)
Public housing agencies have flexibility under current federal requirements to implement strategies in their HCV programs to improve location outcomes, and state and local governments could facilitate these efforts. But too few use the flexibility they have. Without changes in federal policy to encourage state and local agencies to take such steps and modify counter-productive policies -- and without reliable funding to maintain the number of families receiving HCV assistance and administer the program effectively -- there is little reason to expect better results.
Even in the current political and fiscal environment, we can make substantial progress toward providing greater opportunities for families to choose affordable housing outside of extreme-poverty neighborhoods and particularly in low-poverty, safe communities with access to jobs and better-performing schools. Federal policymakers should make four sets of interrelated policy changes.
1. Help Interested Families Use Vouchers to Live in High-Opportunity Areas
Some 20 agencies, out of 2,100, offer a mobility program to help low-income families use their vouchers to move to high-opportunity areas.(37) These programs, largely supported by special grants or private funding, have shown some promising results.(38) Other than these rare exceptions, however, agencies do little to expand families' access to better neighborhoods,(39) though interest is growing.(40) With additional funding and incentives, they could do much more.
Inspired by the recent research by
To create more housing mobility programs and determine which interventions are most cost effective, Reps.
*
*
* Research to determine which program components are most cost effective. If funds permit, the bill directs HUD to evaluate what interventions are most cost effective.
To ensure the demonstration has the greatest impact, the bill would require HUD to award funds on a competitive basis and prioritize regional collaborations among agencies with high concentrations of voucher holders in low-opportunity neighborhoods, a high-performing Family Self-Sufficiency program, or a strong regional collaboration including one or more small agencies, among other factors. HUD would have flexibility to decide how many grants to award.(43)
HUD should indicate its support for the demonstration, and
HUD could widely share preliminary research findings from the demonstration to encourage other agencies to implement promising practices. In addition,
2. Create Strong Incentives for Agencies to Improve Location Outcomes
By creating strong incentives for agencies to reduce the share of families using vouchers in extreme-poverty areas and increase the share living in high-opportunity areas, HUD can encourage agencies to develop policies and strategies best suited to varying local conditions. Three such steps are described below.
Pay agencies additional administrative fees when families use their vouchers in high-opportunity areas. Agencies that provide services to help families use their vouchers in high-opportunity areas incur additional costs and risk lower fee payments from HUD if it takes these families longer to find a willing landlord.(47) Higher costs but lower fees are more likely when such moves are particularly difficult, such as for families who may need more assistance to move to unfamiliar areas. In 2016, HUD issued a proposed rule for determining how to allocate administrative fees to agencies, based on a major analysis it had conducted of the costs of running a well-administered voucher program.(48) However, HUD has taken no action to finalize a new administrative fee structure.(49) HUD should move to implement a new fee structure that includes location-based payments, either as part of the new payment formula or as a bonus or supplemental payment.
Even without a change in regulation, HUD could make supplemental disbursements to help agencies offset these costs. HUD has used its discretion to make such payments to promote use of vouchers for homeownership and other purposes.(50) Indeed, since 2013 HUD has provided additional funding to agencies that administer a relatively large share of vouchers on behalf of families that have moved from a community served by a different agency; this has been an effective way to reduce financial disincentives to accepting such movers. While HUD develops a new administrative fee formula, it should use its discretion to provide supplemental administrative fees to agencies that significantly increase the share of vouchers used in high-opportunity areas and outside of areas of concentrated poverty.
Give increased weight to location outcomes in measuring agency performance. Over the long term, HUD's most powerful tool to induce agencies to change their administrative practices is how it measures agencies' management of the HCV program. HUD should revise its measurement tool, called the Section 8 Management Assessment Program (SEMAP), which was first issued in 1998 and is largely unchanged, to give more weight to the types of neighborhoods in which voucher holders live. SEMAP scores are important to agencies: they can affect whether agencies qualify for additional HUD funds or administrative flexibility, and some agencies take these scores into account in managers' performance reviews and pay determinations. Agencies that perform particularly poorly are subject to corrective action procedures and can lose their HCV contract with HUD if they don't remedy the problems.
Currently, fewer than 4 percent of the total points available under SEMAP are based on agencies' use of administrative practices that "expand housing opportunities." A similar number of bonus points are available to agencies in metropolitan areas that increase the share of HCV families with children living in "low-poverty" areas, but only a small share of agencies claim those bonus points.(51) In revising the performance measure, HUD should give more weight to location outcomes and also refine its location measure; research shows that a multi-factor measure can better identify high-opportunity areas than the poverty rate alone.(52)
To persuade more landlords in higher-opportunity areas to do business with them, agencies will also have to administer their voucher programs competently, such as by paying owners promptly and conducting inspections efficiently.(53) Thus, measuring agencies' performance in significant part on their success in enabling more families to live in these areas also should improve overall program management.
Reinforce performance measures by effectively implementing the new fair housing rule. All agencies administering the HCV program (as well as HUD) have a statutory obligation to further the purposes of the Fair Housing Act, known as the "AFFH" duty. In 2015, some 47 years after
Regardless of the status of HUD's rule, the statutory obligation to affirmatively further fair housing remains, as HUD has acknowledged, and agencies must certify annually that they have complied with civil rights and fair housing requirements in their administration of the HCV program.(57) Effective implementation of AFFH requirements, including specification of the consequences of inadequate HCV-related actions by agencies, would complement a revised performance measurement system that emphasizes increasing access to higher-opportunity areas. Black and Hispanic families make up most of the assisted families in extreme-poverty areas and are less likely than white assisted families to live in low-poverty areas,(58) in large part due to public policies that enforced or encouraged segregation.(59) HUD should take steps to help remedy the legacy of segregation and ensure that housing agencies, states, and localities meet their fair housing obligations.
3. Modify Policies That Discourage Families from Living in Lower-Poverty Communities
Many HCV program policies at both the federal and local levels -- such as metropolitan-wide limits on rental subsidy levels and limits on the time that families have to find a rental unit -- unintentionally encourage families to use their vouchers in poor communities with few resources to support children and their families. Combined with the recommendations listed above, the three federal policy changes outlined below could encourage agencies to adopt payment standards and search-related practices that would help families move to higher-opportunity areas.
Increase use of new subsidy caps for smaller geographic areas. HCV rental subsidies are capped by a payment standard set by the local housing agency; the standard generally can vary by only 10 percent from the Fair Market Rent (FMR) figure, which is specified by HUD. Until recently, HUD based FMRs throughout the country on the cost of modest housing over an entire metropolitan area. Payment standards based on metro-wide FMRs are inefficient and often too low to cover rent for units in neighborhoods with low poverty, low crime, and strong schools.(60)
In 2016, HUD issued a regulation requiring certain agencies to base their voucher subsidy caps on Small Area Fair Market Rents (SAFMRs), which are based on market rents in individual zip codes rather than an entire metro area. This requirement applies to 24 metropolitan areas where vouchers are heavily concentrated in low-income neighborhoods and the rental market is not too tight.(61) After a court invalidated the
Give voucher holders information on units in high-opportunity neighborhoods. Many agencies influence families' neighborhood choices through their lists of landlords willing to rent to voucher holders. (HUD requires agencies to provide a list of willing landlords or other resources, such as online search tools, in the information packet they provide to families as they are issued vouchers.) But unless agencies take the potentially time-consuming effort to solicit listings from landlords in lower-poverty areas, many of the landlords who reach out to the agency will likely list units that are difficult for them to rent, particularly units in very poor neighborhoods where families often have trouble paying rent on time each month unless they have a rental subsidy.(64)
In 2015, HUD modified its rules to require agencies to ensure that such lists or other resources include units in areas "outside of poverty or minority concentration."(65) This is a positive step, but it's unclear if HUD is monitoring compliance with the new requirement. HUD should monitor and enforce this requirement.(66) Since many agencies refer voucher holders searching for new housing to online search tools, HUD could facilitate agencies' compliance by persuading the major companies that list appropriately priced apartment rentals to meet the new standard or by compelling them to do so through its power to enforce the Fair Housing Act.(67)
Extend search periods when families need more time to find units in high-opportunity neighborhoods. Inflexible limits on the time that families with vouchers have to find a unit meeting program requirements can also discourage them from searching for housing in neighborhoods that are harder for them to get to and/or where fewer landlords accept vouchers.(68) Federal rules require agencies to give households a minimum of 60 days to lease a unit with their voucher and permit agencies to allow additional time.(69) HUD should make clear that agencies may set a longer initial search period or extend the search time for any sound reason, and should do so to enable a family to find a unit in a low-poverty area or in an area where their race does not predominate. In the latter case, this would "affirmatively further" fair housing.
4. Minimize Jurisdictional Barriers to Families' Ability to Live in High-Opportunity Communities
HUD should modify the administrative geography of the HCV program to substantially reduce the extent to which agencies' service areas (or "jurisdictions") impede families' access to higher-opportunity neighborhoods. In most metropolitan areas, one agency administers the HCV program in the central city and one or more different agencies serve suburban cities and towns. That's the case in 97 of the 100 largest metro areas, where 71 percent of households in the HCV program lived in 2015. In 35 of the 100 largest metro areas, voucher administration is divided among ten or more agencies. They include mid-size areas such as
Rental units in safe neighborhoods with good schools may be more plentiful in suburban areas than in the central cities, which are more likely to have higher-poverty neighborhoods with failing schools, but the balkanization of metro-area HCV programs among numerous agencies often impedes greater use of vouchers in the higher-opportunity areas.(71) Agency staff may be unfamiliar with housing opportunities outside of their jurisdiction and are unlikely to assist families to make such moves. Some landlords may be reluctant to do business with an unfamiliar housing agency.
Overcoming these administrative divisions is challenging, and cumbersome federal "portability" policies can exacerbate the problem by making it harder for families coming from the central city or poor suburban areas to use their vouchers to lease housing in low-poverty suburban areas with better schools. Agencies also have financial disincentives to encourage such moves. HUD could substantially lessen these barriers by adopting the steps outlined below.
Encourage agencies to form consortia or consolidate. If agencies in a metro area could at least form a consortium in which each retains its local board but together they have a single voucher funding contract with HUD, families could use their vouchers to move seamlessly within the cities and towns in the consortium.(72) Families that want to move to another jurisdiction wouldn't have to jump through additional administrative hoops, and agencies wouldn't have to transfer voucher documents and funds to another agency under portability procedures. Nor would families risk losing savings they accumulated through participation in HUD's Family Self-Sufficiency program.(73) Under HUD's current rules, however, agencies have little incentive to form consortia, and even if they do, they still don't have a single funding contract with HUD.(74)
In
The 2018 law also requires HUD to make software available to agencies and privately owned assisted properties to implement regional shared waiting lists.(76) The availability of such software likely would encourage more housing providers to operate joint waiting lists in regions or states, making it easier for families to apply for voucher assistance. Also, operating joint waiting lists would encourage regional agency cooperation and information sharing, which could be a stepping stone to forming consortia or consolidating. HUD should act expeditiously to implement this directive.
Reduce financial disincentives for agencies to promote "portability" moves. When a family uses a voucher in a different jurisdiction than the one that issued the voucher, both agencies involved usually receive lower fees (due to the requirement to split the administrative payments) and typically incur higher costs (due to the transfer of paperwork and funds between the agencies).(77) HUD recently made modest changes in its "portability" procedures that likely will reduce some of the added costs for agencies, but agencies likely will still incur financial losses when families move to other jurisdictions. Those losses deter agencies from encouraging such moves.(78)
HUD should revise its administrative fee policy to provide higher funding to agencies that send or receive substantial numbers of families across jurisdictional lines.(79) HUD's efforts since 2013 to provide additional funding to agencies that have more than 20 percent of their participants from another jurisdiction have reduced the most extreme financial penalties agencies face. But this policy isn't sufficiently broad, and isn't reliable since HUD can decide each year whether to continue such supplemental funding. HUD should change its administrative fee policy to permanently recognize increased costs that occur when families "port" their vouchers.(80)
In some areas, agencies have established regional portability agreements that reduce agencies' costs and families' administrative barriers. HUD could encourage adoption of such agreements in more areas by collecting and disseminating information on leading practices through notices, trainings, and online materials.
Consider consolidation and expanding housing choice in selecting remedies in response to poor agency performance. HUD has the authority to require consolidation when an agency is not administering the HCV program effectively, even if a state or local law limits the geographic area of agency operation.(81) HUD rarely uses this authority, and when consolidation occurs, HUD typically transfers vouchers from the failing agency to the nearest local housing agency. HUD should instead consider whether a county, regional, or statewide housing voucher program exists that could serve the original community while also expanding families' housing choices due to its broader geographic service area.
See table here (https://www.cbpp.org/research/housing/federal-policy-changes-can-help-more-families-with-housing-vouchers-live-in-higher).
Data Sources and Methodologies
Assisted Households
Data on HUD-assisted households are from a 2017 dataset from the
*
* Section 8 Housing Choice Vouchers
* Section 8 Project-Based Rental Assistance
* Moderate Rehabilitation
* Supportive Housing for the Elderly (Section 202)
* Supportive Housing for People with Disabilities (Section 811)
* Rent Supplement
*
Our analysis excludes HUD-assisted households located in
Assisted Households With Children
The HUD administrative data report the presence and number of minor children in each household using rental assistance. We considered a household to have children if at least one household member was under age 18, regardless of their relationship to the household head.
Race and Ethnicity of Assisted Households
The HUD administrative data report the race and ethnicity of each person in each household using rental assistance. Data on assisted households by race and ethnicity are based on the self-reported race and ethnicity of the household head. Data on assisted children by race and ethnicity are based on the self-reported race and ethnicity of each child. We create mutually exclusive categories based on race and ethnicity in order to isolate differences in location for Hispanic or Latino households and children. Asian, black, multiracial, Native American, Pacific Islander, and white race categories exclude households or children who identify as Hispanic or Latino ethnicity, making the categories mutually exclusive. A household or child who identifies as Hispanic or Latino ethnicity may be of any race. Race and ethnicity data were missing for roughly 8,000 assisted household heads and 10,000 assisted children.
Race and Ethnicity of Poor Children
Data on poor children by race and ethnicity are from the 2012-2016
Poverty
Poverty status is determined using the
* Institutional group quarters (such as prisons or nursing homes)
* College dormitories
* Military barracks
* Living situations without conventional housing (e.g., homeless people who are not in shelters)
Additionally, the Census cannot determine poverty status for unrelated individuals under age 15 (such as foster children) because the Census does not collect relevant income data on people age 15 or younger. We rely on Census's poverty thresholds to determine the poverty status of households using vouchers in the HUD administrative data. To ensure comparability between the two sources, we exclude unrelated children under age 15 (i.e., foster children) in our poverty calculations. We compare poor assisted children to all children in poverty to control for income and because it is not possible to identify all children who are eligible for but do not receive HUD rental assistance in the ACS data. (A household is eligible for federal rental assistance if its income is below 80 percent of the local median income.)
Neighborhood Poverty
Data on neighborhood poverty rates are from the 2012-2016 ACS. We use Census tract boundaries as a proxy for neighborhood boundaries. Census tracts are small, relatively permanent geographic subdivisions of a county or equivalent entity; they generally have a population between 1,200 and 8,000 people, with an optimum size of 4,000. We consider a neighborhood "low poverty" if fewer than 10 percent of the people living in that Census tract have incomes below the poverty line. We consider a neighborhood "extreme poverty" if 40 percent or more of the people living in that Census tract have incomes below the poverty line. To determine the neighborhood poverty rate for assisted households and children, we matched each household's tract number to their Census tract's poverty rate reported in the ACS data. Our analysis excludes roughly 18,000 assisted households and 41,000 children with missing neighborhood data.
Footnotes:
(1) CBPP analysis of HUD 2017 administrative data.
(2)
(3) Broad-scale economic development and revitalization strategies for disadvantaged neighborhoods (including those, such as HOPE VI, that emphasize revitalizing affordable housing developments have proven costly, often take years to implement, and have yielded mixed results for low-income residents. See
(4)
(5)
(6) For a synthesis of some of this research, see Barbara Sard and
(7)
(8)
(9)
(10) Several MTO studies have found differences in mental health outcomes for boys and girls in families that used vouchers to relocate to lower-poverty areas. These studies generally find reduced risks of depression and other mental health improvements among girls, but several found worse mental health outcomes among boys. The latter findings are not well understood. One potential factor identified by researchers is that neighborhood changes may weaken boys' relationships with fathers who remain behind. Racial bias among white residents of low-poverty neighborhoods may also have a greater impact on black boys than girls. For discussion of these findings, see Sard and Rice (2014), and
(11) Schwartz's study took advantage of a natural experiment made possible by the county's housing policies. Applicants for public housing assistance were randomly assigned to public housing developments across the county. Because of the county's zoning policies, most of these developments are in low-poverty neighborhoods (with poverty rates of less than 10 percent), while the others are in neighborhoods with moderate or high poverty rates (up to 32 percent). This enabled Schwartz to compare educational outcomes for students living in neighborhoods and attending schools that differed significantly with respect to poverty and related characteristics.
(12)
(13) For references, see Sard and Rice, 2014.
(14) Racism and discriminatory public policies have played a central role in the creation and persistence of neighborhoods of extreme poverty, which are home primarily to people of color, particularly African Americans. (These factors also contributed to the creation and persistence of high-opportunity neighborhoods, which are predominantly white.) See, for instance,
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22) Center on Budget and Policy Priorities, "Policy Basics: The Housing Choice Voucher Program," updated
(23) CBPP analysis of
(24)
(25) In 2017, the median poverty rate of communities where poor children using vouchers lived was 24.2 percent, slightly higher than the comparable rate for all poor children of 22.9 percent, according to CBPP analysis of the 2012-2016
(26) In 2017, 13.6 percent of families with children using vouchers lived in low-poverty neighborhoods, compared to 3.9 percent of those in public housing and 6.4 percent of those in privately owned units with project-based rental assistance. Also, families using vouchers were substantially less likely to live in extreme-poverty neighborhoods compared to families in public housing or project-based rental assistance: 13.8 percent of families using Housing Choice Vouchers lived in extreme-poverty neighborhoods, whereas 36.6 percent of family-occupied public housing units and 25.3 percent of family-occupied, privately owned units with project-based assistance were located in extreme-poverty neighborhoods. See Appendix Table A-1.
(27) See Appendix Tables A-3, A-4, and A-5.
(28) See Appendix Tables A-4 and A-5. There is little difference between the share of all poor Hispanic children who live in extremely poor neighborhoods and the share of poor Hispanic children with vouchers who live in these neighborhoods: 15.9 percent of the former live in neighborhoods with a poverty rate of 40 percent or more, compared with 15.6 percent of the latter.
(29) A third of children with vouchers (33.8 percent) live in high-poverty or extreme-poverty neighborhoods, with a poverty rate of 30 percent or more. See Appendix Table A-2.
(30) For example, in



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