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in this video were going to talk about the economics of housing vouchers so some countries use housing vouchers is a way to ensure that all families can have access to affordable housing for example in the United States we have a program called section 8 and section 8 provides vouchers to low-income families to make sure they can get housing in the way that section 8 works is this so for a given neighborhood you assess what is the fair market rent for that neighborhood and then the tenant he or she is going to contribute 30 percent of his or her income toward the fair market rent so lets pretend that the fair market rent for a neighborhood was $1200 in that the tenant 30 percent of his or her income lets say that that is $400 so whats going to happen is that that $1200 fair market rent were gonna subtract the $400 that the tenant pays and thats gonna leave a shortfall of $800 theres gonna be $800 left that the tenant cant afford in the voucher this section 8 housing voucher is
