Summary

This study presents empirical evidence on the benefits of federal, state, and local government-subsidized rental housing programs in 1977. Specifically, I estimate:

1. The benefits of the programs to participating families.

2. The changes in consumption of housing and nonhousing goods resulting from participation in the programs.

3. The relationship between mean household benefit and household characteristics.

4. The distribution of benefits among similar families.

Chapter 1 includes an overview of the major federal government rental housing subsidy programs and of New York State's Mitchell–Lama program, an important nonfederal program. The federal programs include low-rent public housing as well as the Section 236 rental housing assistance program, the rent supplement program, the Section 8 new construction and substantial rehabilitation program, and the Section 8 existing housing program. These programs differ according to the subsidy mechanism used and the extent of the subsidy. Their primary goal is to induce low- and moderate-income families to occupy better housing than they would with equally costly cash grants.

The first also includes a summary of the methodological approach used to estimate benefits. The estimates are obtained using a Hicksian measure of consumer surplus within an intertemporal framework. The model assumes an intertemporal utility function and allows future income and prices to affect current consumption decisions. It also allows households to save and dissave.