A proposed federal policy to impose a two-year cap on rental assistance is drawing sharp criticism from housing advocates, landlords, and researchers—who warn it could destabilize affordable housing for millions of Americans.

Policy Under Review

The Department of Housing and Urban Development (HUD) is exploring a controversial shift that would cap participation in Section 8 voucher programs and public housing subsidies at two years. HUD Secretary Scott Turner, speaking before Congress in June, defended the idea as a step toward ensuring long-term program viability and curbing fraud. He emphasized that housing aid was never designed to be permanent and pointed out that the average household now remains in the system for over six years.

Mounting Concerns

Critics argue the proposal could have devastating consequences. An estimated 1.4 million low-income households—many of them working families with children—could face displacement if time limits are enacted. Advocates contend that market rents continue to rise far faster than wages, leaving families unable to transition off assistance within the proposed timeframe.

Landlords on Edge

Landlords, too, are raising alarms. Despite frustrations with HUD’s bureaucracy, many property owners value the program’s reliable rent payments and long-term tenants. A hard time limit, they say, could introduce more tenant turnover and uncertainty, potentially pushing some to withdraw from the system entirely.

What the Data Says

Research from New York University shows roughly 70% of current recipients stay in the program longer than the suggested two-year limit. However, the proposed cap would not apply to elderly or disabled residents, who represent nearly half of HUD-assisted households. Supporters of the policy believe it could reduce years-long waitlists and encourage greater self-sufficiency, citing pilot efforts in California and New Hampshire that delivered mixed outcomes.

➥ THE BOTTOM LINE

While HUD’s proposal may aim to ease strain on the system, critics say the trade-off could be too steep. The plan may reduce waitlists—but at the cost of placing millions of families at risk. As policymakers debate the future of federal rental aid, the core tension remains: how to balance program sustainability with the realities of America’s housing crisis.