How can rental assistance vouchers help reduce housing insecurity in Minnesota?

What will it take to reduce housing insecurity and homelessness in Minnesota? Simply put, we need to get people off the streets and into housing.

But how do we prevent individuals and families from losing their housing in the first place? How do we keep families stably housed?

And how can we prevent people from slipping back into homelessness once they finally find stable housing?

Beyond building more affordable homes, rental assistance vouchers (aka "rent vouchers") offer an affordable, proven solution to reducing housing insecurity and homelessness.

So, how do rent vouchers work, and how can we make them widely available to those who would benefit most from them?

Read on to find the answers.

How do rental assistance vouchers work?

Rental assistance vouchers ensure that no family or recipient of a voucher pays more than 30% of their monthly income on rent.

So, if you hold a rent voucher, you will pay up to 30% of your monthly income toward rent, and the government will pay the remaining amount (anything over 30%).

For example, if you earn $1,000 per month, then 30% of your monthly income is $300.

Now, if your rent costs $500 and you have a rent voucher, you will pay exactly $300—30% of your monthly income—toward your rent. The government will pay the remaining amount due—anything over 30%—which, in this case, amounts to $200.

Simple, right?

So, how do you qualify for a rental assistance voucher?

To qualify for a voucher, you must make less than 50% of your region's area median income (AMI).

The area median income represents the midpoint of a region's income distribution. This means that half of the households in a region earn more than the median, and half earn less.

AMI is based on a household's gross income, representing the total income earned before taxes and other payroll deductions.

In the Twin Cities metro area, the AMI for a family of four is approximately $124,900 as of 2023, according to the Metropolitan Council. That means a family earning 50% AMI earns around $62,450. 30% AMI would be around $37,250.

Of course, AMI varies from region to region. In an area like Duluth, where the cost of living is cheaper and incomes are typically lower, 50% AMI hovers at around $29,000 for a family of four. In Rochester, Minnesota, 50% AMI is around $40,000.

Again, only families and individuals earning 50% or less AMI would qualify for a voucher.

But how do we know that rent vouchers would make a worthwhile difference in preventing homelessness for families and individuals earning 50% or less AMI?

There's good news in that area. The evidence that rent vouchers work is abundant.

Rent vouchers offer a proven way to reduce housing insecurity—here's how we know

Fortunately, we don't have to look far for evidence that rental assistance vouchers work when it comes to preventing or lifting individuals out of homelessness.

Why?

Existing federal rental assistance programs have been operating and proving their effectiveness for years.

According to the United States Interagency Council on Homelessness, federal rental assistance lifted three million individuals out of poverty in the US in 2018. That includes over 665,000 senior citizens and 936,000 children. That's about the same population as the Twin Cities metro.

Put into perspective, rent vouchers lifted more people out of poverty than any other federal program besides Social Security.

What are the other benefits of rent vouchers for Minnesotans?   

Besides reducing poverty, rental assistance vouchers provide the added benefit of reducing housing instability, crowding, and homelessness.

According to the Center on Budget and Policy Priorities, rental assistance decreased the number of families living on the streets and in shelters by 75%. It also lowered the number of families living in overcrowded conditions by half.

Rent vouchers help with child development, too. That's because children whose families receive rental support experience fewer disruptions to their sleep.

This seemingly small benefit leads to greater attention spans, fewer behavioral problems, and better academic performance.

Studies also show that these students are more likely to earn more as adults, which can free them from the cycle of poverty.

And for adults, rental assistance can reduce stress generally associated with housing insecurity and homelessness (or the fear of ending up without a home).

By allowing adults to choose their housing, rental vouchers can help them move to less-impoverished neighborhoods. This can further boost health outcomes, lower diabetes, and decrease obesity.

So, the question remains: if rental vouchers are so effective at reducing homelessness and poverty, then why do we continue to face widespread homelessness and housing insecurity?

And why would we need a statewide program in Minnesota if a federal program exists already?

Why do we need more rental assistance vouchers in Minnesota?

Although they've proven nearly as effective as Social Security in preventing and lifting individuals and families out of poverty, rental assistance programs remain drastically underfunded in Minnesota and the greater United States of America.

And because of this limited funding, the supply of rent vouchers cannot meet the demand.

Only one out of every four qualifying individuals receives a rental voucher.

That means the other three out of four qualifying individuals remain at a highly elevated risk of slipping into homelessness.

In these cases, at-risk individuals and families find themselves usually one considerable, unexpected cost—whether it's an onsite work injury or a car breakdown—away from being without housing. That's the definition of housing insecurity.

So, while we're constantly moving people out of homelessness and into homes, other individuals and families find themselves slipping into homelessness thanks to the high cost of living and unaffordable rent that cause housing insecurity.

Minnesota families literally can't afford to keep waiting on Washington for the housing stability they need today.

However, fully funding a rental assistance voucher program at a state level can ensure that every qualifying individual in Minnesota receives a voucher. This would drastically reduce the odds of sliding into homelessness, increase housing security, and help our state work better for everyone.  

Luckily, we're on our way toward a Minnesota where that's the case.

During the 2022-2023 legislative session in Minnesota, the state legislature and governor passed into law Bring it Home, Minnesota—the first-ever state-funded rental assistance program in Minnesota.

Bring it Home, Minnesota will provide ongoing funding for rental vouchers over the next several years. The ongoing nature of this program ensures that the people receiving rental assistance can count on continued support.

Continued rental support allows recipients to slowly but surely build wealth and strengthen their safety nets. Additional cash reserves accumulated over time increase stability and decrease the chances of slipping into homelessness or housing insecurity.

Does Bring it Home, Minnesota provide enough rental assistance vouchers to meet the demand?

While the current funding for Bring it Home, Minnesota provides an excellent starting point for a statewide rental assistance program, it remains far from meeting the existing needs of Minnesotans.

Currently, the program provides funding for around 5,500 rental assistance vouchers. That's enough vouchers for 5,500 households.

However, 550,000 Minnesotans find themselves at risk of falling behind on rent and regressing into homelessness or a state of housing insecurity. So, Bring it Home, Minnesota has a ways to go before it meets the entirety of the need.

What will it take to fully meet Minnesota's need for rental assistance vouchers?

Currently, Minnesota spends about 1% of its budget on housing.

Increasing that to 4% of the state budget would likely provide enough funds for every qualifying Minnesotan to receive a rental assistance voucher.

Imagine the effect that could have statewide.

It would mean fewer public resources spent on emergency shelters, emergency medical care, and other systems frequently used by individuals experiencing homelessness. It could also reduce the need for other social services frequently used by low-income families.

A fully funded rental assistance program could mean thousands of students statewide would have more time to focus on homework rather than deciding whose couch to sleep on each evening.  

Are rent vouchers morally just?

That's a fair question.

Here's one way to consider that question: Humans have basic needs they need to meet in order to survive.

In his famous "Hierarchy of Needs," Maslow defines the most basic, foundational needs as air, food, water, shelter, clothing, and sleep.

If we don't get these, we run a higher risk of death and have lower odds of attaining higher needs, such as health, employment, property, a sense of connection, respect for others, and purpose.

In other words, basic needs provide the foundation for a healthy, productive life where we live as our best selves.

Most everyone would agree that we cannot get far for very long without food and water especially. As Minnesotans, we know that suitable, warm clothing is essential on those frigid winter days.

And most of us would donate some of our income if we knew it would provide food, clothing, or clean water to those in need.

So, why not prioritize shelter in the same way, too? It remains, after all, right next to food, water, and clothing as essential needs on Maslow's pyramid.

Let's put it another way—we immediately provide food stamps to everyone who qualifies because we understand that we cannot let members of our society starve. So, why don't we provide the shelter of home for everyone who qualifies?

Along with food, water, and clothing, shelter is a basic human need. Meeting that need allows individuals to access higher needs and go from surviving to thriving. Not having this basic need could mean the opposite.

So, ask yourself, "Is it just to deny someone housing if that need shares equal importance as food, water, and clothing?"

So, what can you do to help fully fund the Bring it Home, Minnesota rental assistance program?

If you're asking this question, thank you for your generosity and compassion—these are traits our state always benefits from. And it's what makes our state a wonderful place to call home.  

However, if you want to take steps beyond this to ensure that all qualifying Minnesotans receive rental assistance, please consider taking the following actions:

1.    Follow Bring it Home, Minnesota on social media: Follow "@bringithomeminnesota" on Instagram and "@Bring it Home, Minnesota" on Facebook to stay up on the latest news from our movement.

2.    Help us spread the word: If you care about this cause, you likely have some good friends and relatives who care about housing stability, too. They're more likely to get on board with a movement if they know you also vouch for it. So, please share our content with anyone you think it would resonate with.

3.    Join our newsletter: Once the state legislature is back in session, we'll ask our supporters to help us put the pressure on our elected officials (in as nice of a way as possible). Stay in the loop and up to date on opportunities to help by joining our newsletter.

4.    Read and share our website: If you want to support an issue, it helps to know a thing or two about it! Our website provides a resource to help you understand the scope of the challenge and how we can feasibly address it—even if that means simply having a conversation about it.

5.    Have a conversation with family and friends: Sharing content on social media will help our movement get off the ground, but nothing beats an in-person conversation.

Beyond that, we ask you to believe in what's possible. Yes, we have a ways to go before we entirely reduce housing instability and end homelessness for everyone in Minnesota. But we know we can do it!

We have the tools, the knowledge, and a head start. Now, we need YOU to join the movement.

Together, we can Bring it home, Minnesota!

Onward!