ABSTRACT
This chapter explores the impact of federal intervention into the housing sector on behalf of low-income individuals. It also describes the economic arguments put forth for housing assistance for the poor. Public housing is one of the largest federal housing programs for the poor and many of the insights applies to other forms of housing assistance such as rental vouchers. The chapter discusses in detail the economics of public housing and housing vouchers and the accumulated empirical evidence on the effects of these interventions into the housing markets for low-income individuals. After reviewing the economic rationales for government intervention into the housing market for low-income individuals it is clear that little economic justification exists for low-income housing subsidies on the grounds of market failure.
