The short answer
Section 202, HUD's Supportive Housing for the Elderly program, funds apartment buildings for older adults with very low incomes. To qualify, at least one adult in the household must be 62 or older, and the household's income must be below 50 percent of the area median income where the property is located. Residents generally pay about 30 percent of their adjusted income in rent, and the program is designed to offer support such as cleaning, cooking and transportation so residents can live independently. You apply at each property, through its owner or manager, not through HUD, and waiting lists are common. HUD's Resource Locator lists properties under Find Affordable Elderly and Special Needs Housing. Other options include Housing Choice Vouchers, public housing, income-restricted apartments and, in rural areas, USDA properties where tenants with rental assistance pay no more than 30 percent of adjusted income.
The two tests: age and income
Section 202 has two eligibility tests, and a household has to pass both.
- Age. At least one adult member of the household must be 62 or older. A couple in which one spouse is 62 and the other is younger can qualify together.
- Income. The household's income must be below 50 percent of the area median income, which HUD calls very low income, for the location of the property.
Because the income limit depends on the property's location, the same household can qualify in one county and not in the next. HUD publishes the limits each year by area and household size, and a property manager can tell you the figure that applies to that building. To see how the test works, take a made-up area where the median income for a two-person household is $80,000: a couple there would need income below $40,000 to qualify.
What you would pay
Residents of Section 202 properties are typically charged 30 percent of their adjusted income for rent, and HUD covers the gap between that and the cost of running the property. Adjusted income is your gross income minus deductions HUD allows, and two of them matter most to older households:
- A deduction for elderly families, which every household whose head, co-head or spouse is 62 or older receives.
- Unreimbursed health and medical costs, deductible above a share of your annual income. HUD has been raising that threshold from 3 percent to 10 percent under a 2016 law, with a phase-in for families who already had the deduction and hardship relief for families whose costs rise.
HUD's rent formula is the same one that sets a tenant's share in most HUD-assisted housing, which is why the housing calculator can estimate it from your income and deductions. If you pay some utilities yourself, the property subtracts a utility allowance from your share, so rent and utilities together stay close to the same 30 percent.
Example (hypothetical): a single renter at 74
Walter receives $1,900 a month from Social Security, or $22,800 a year. Suppose that after HUD's deductions for an elderly family and for his medical costs, his adjusted income comes to $20,400 a year, or $1,700 a month.
At 30 percent of adjusted income, his rent in a Section 202 building would be about $510 a month, whatever the apartment would cost on the open market. If his income or medical costs change, the rent is recalculated.
More than an apartment
Section 202 is meant to let older adults with very low incomes live independently in an environment that provides support activities such as cleaning, cooking and transportation. The services differ from building to building, so ask each property what it offers and whether any service carries its own charge.
That support is what separates Section 202 from an ordinary subsidized apartment. It is still housing, not a nursing home: residents live on their own, and the services are there to help them keep doing so.
How to find a property and apply
HUD does not lease Section 202 apartments itself. Each building is run by its owner, usually a private nonprofit, and you apply to each one directly.
- Find the properties near you. HUD's Resource Locator lists them under Find Affordable Elderly and Special Needs Housing.
- Contact each property's manager to ask whether its waiting list is open and how to apply.
- Apply to several buildings at once. Waiting lists are common, and each building keeps its own, so being on more than one gives you more chances at an opening.
- Keep your contact details current with every property, and answer any letter promptly; a missed letter can remove you from a list.
Questions to ask each property
Section 202 buildings differ more than the program's rules suggest. When you call, ask:
- Is the waiting list open, and how will you contact me when my name comes up?
- Which services does the building offer, such as meals, housekeeping help or transportation, and does any of them cost extra?
- Are utilities included in the rent, or do I pay some of them myself?
- What accessibility features do the apartments have, such as grab bars, step-free entrances or elevators?
- What are the rules on guests, pets and live-in aides?
Write the answers down next to each property's name; after a few calls, the buildings start to blur together.
How it differs from a voucher
The help in Section 202 belongs to the building, not to you. Your rent stays at about 30 percent of adjusted income for as long as you live there and remain eligible, but if you move out, the help stays behind with the apartment.
A Housing Choice Voucher works the other way: it follows the household, so you can rent from a private landlord who accepts it and take it with you when you move. Vouchers have their own waiting lists and no age requirement. Many older renters apply for both, and take whichever comes through first.
If a Section 202 building is full
Section 202 is one of several programs that can lower rent for an older adult, and it makes sense to pursue more than one while you wait.
Swipe sideways to see the whole table.
| Option | Who runs it | What you pay |
|---|---|---|
| Section 202 housing | Nonprofit owners, with HUD funding; one adult must be 62 or older | About 30% of adjusted income |
| Housing Choice Voucher (Section 8) | Your local public housing agency; no age requirement | Generally about 30% of adjusted income, plus any rent above the local limit |
| Public housing | Your local public housing agency; some buildings are designated for older adults | Generally about 30% of adjusted income |
| Income-restricted apartments | Private owners, often under the Low-Income Housing Tax Credit | A rent set for the unit, not based on your income |
| USDA rural rental housing | Owners financed by USDA Rural Development, in rural areas | No more than 30% of adjusted income with rental assistance |
Our guides to Section 8 vouchers, public housing and income-restricted apartments explain how to apply for each.
Before you apply
- Photo identification for each adult in the household, and proof of age for the member who is 62 or older.
- Proof of income, such as your Social Security benefit letter; our guide to benefit letters shows how to get a current one.
- Records of medical costs you pay yourself, including insurance premiums and prescriptions, which can lower your rent.
- Bank statements and records of any other assets the property asks about.
- A list of every property you apply to, with the date, the contact and whether its waiting list is open.
Common questions
Does everyone in the household have to be 62?
No. At least one adult member must be 62 or older. Others in the household, such as a younger spouse, can live there too, as long as the household meets the income limit.
Is Section 202 the same as assisted living?
No. Section 202 provides apartments for older adults who live independently, with support activities such as cleaning, cooking and transportation offered in many buildings. It is not a nursing home and does not provide medical care around the clock.
How often is the rent recalculated?
The property's management figures your rent from the income and deductions you report under HUD's rules. It is reviewed at least once a year, and it can change sooner if your income or household changes.
Official sources
Get on more than one list this month
Waiting lists are the hard part of Section 202, so time spent on the list is what counts. Look up the properties near you, apply to several, and estimate your rent share with the housing calculator so you know what to budget. If you also want a voucher you can take to any rental, apply to your public housing agency at the same time; being on one list does not stop you from joining another.
