Analysis by David Layfield
Last Updated: August, 15th 2024
The statewide Montana Department of Commerce Section 8 Housing Choice Voucher waiting list is closed as of August 15, 2024. Blaming the waiting list closure on a decision from HUD to decrease Montana's Section 8 funding from approximately $2 million per month to under $1.5 million, on July 2, 2024, Governor Greg Gianforte (R) wrote a terse letter to HUD Acting Secretary Adrianne Todman, requesting the decision be reversed. In the letter, Gianforte says "Absent HUD's reconsideration, Montana will initiate closing the waitlist and halting all new leasing by July 31, 2024.These actions will have significant implications for vulnerable Montanans who have been waiting for a voucher."
Gianforte stated Montana should not be bailing out other states who mismanaged their Section 8 program. He said "The residents of our state should not be forced to bail out other states that have poorly managed their federal HAP funding. To be clear, low-income Montanans patiently waiting for critically needed rental assistance will be at increased risk of homelessness as a direct result of the Biden Administration's decision to bail out fiscally irresponsible states at the expense of properly managed states like Montana."
To be clear, Montana's shortfall is not caused by "poorly managed states". Section 8 HAP funding isn't at the state level at all. The funds are allocated directly to Public Housing Agencies, not through the states. Additionally, the shortfalls presently being experienced in the program nationally are a result of a lack of funding, not mismanagement. Further, HUD did not withdraw Montana's funding. It reduced its monthly allocation and instructed it to fund the difference with the state's HUD-held reserve fund. The Federal fiscal year ends in September meaning that lower level of funding would likely only hold for a few months. As the state's reserve fund is adequate to cover the few months of shortfall, one can only interpret this move by the Governor as a partisan election year stunt.Politics aside, the waiting list will close on August 15, 2024, until further notice. In addition, the Governor's letter indicates they won't just close the waiting list but they will stop issuing new vouchers.
Montana Department of Commerce has preferences for: Elderly, Disabled, Extremely Low-Income Households. Preferences are not required but Section 8 Voucher applicants that meet these criteria will be moved up the waiting list.
Montana Department of Commerce Section 8 Voucher Waiting List is managed by Montana Department of Commerce.
Montana Department of Commerce provides affordable housing for up to 4,566 low- and moderate-income households through its public housing programs.
This housing agency serves Beaverhead County, Big Horn County, Blaine County, Broadwater County, Carbon County, Cascade County, Chouteau County, Custer County, Daniels County, Dawson County, Deer Lodge County, Fergus County, Flathead County, Gallatin County, Glacier County, Golden Valley County, Granite County, Hill County, Jefferson County, Judith Basin County, Lake County, Lewis and Clark County, Liberty County, Lincoln County, Madison County, Meagher County, Mineral County, Missoula County, Musselshell County, Park County, Petroleum County, Phillips County, Pondera County, Powell County, Ravalli County, Richland County, Roosevelt County, Rosebud County, Sanders County, Sheridan County, Silver Bow County, Stillwater County, Sweet Grass County, Teton County, Toole County, Valley County, Wheatland County, Yellowstone County, Montana.
After applying, it's a good practice to keep a record of any application that you submit. This will help you keep track of your application, and is especially useful if you apply to multiple waiting lists. You can do this easily with a document on your computer or mobile device, and also with a notebook or piece of paper.
Make sure to write down your application or confirmation number with the application details. This number will be important to reference in the future. Once you have this information written, keep it stored in a place that's easy to access when you need it.
With this information safely stored, all you have left to do is wait to find out if you've been selected for the waiting list.
Depending on the area, it may take weeks or even months to know if you've been selected for the waiting list. Your wait for an announcement is usually the longest in areas with large populations and a high demand for housing assistance.
Check if the public notice states when the housing authority plans to announce the results, or how long it may take to review applications. Contact the housing authority if this information isn't available.
Once all applications are reviewed, the housing authority will either contact everyone who has been placed on the waiting list, or message everyone who applied to check their results.
The housing authority will use the contact information you give in the application to reach you (usually by mail, email, or phone). For this reason, it is very important to put valid contact information on your application. Make sure you keep your contact information up to date, and that you respond quickly if any further action is required.
If you don't get contacted by the housing authority, it might mean that you were not chosen for the waiting list. Sometimes, housing authorities do not contact applicants who were not placed on the waiting list. Check with the housing authority for confirmation.
To check your status on the waiting list, you usually have to log into an online portal, call a phone number, or visit the office. Each housing authority has different ways for you to check your status.
Some housing authorities will give your spot on the waiting list, but others might only confirm that you're still on the waiting list. Make sure that you have your application or confirmation number with you when checking your status.
The wait to reach the top of this waiting list will be different for everyone.
This waiting list has at least one preference, so those who qualify will have a shorter wait than those who don't. After sorting preferences, applicants are placed on the waiting list by date and time the application was received by the housing authority. So applying soon after the waiting list opens will give you a shorter wait than those who wait to apply after you.
If you are closer to the top of the waiting list, your wait may be just weeks or months long. But if you're closer to the end of the waiting list, it could take years to reach the top.
To update your waiting list application, you usually have to log into an online portal, call a phone number, or submit a form to the office. Each housing authority has different ways for you to update your application.
Make sure that you have your application or confirmation number with you when updating your application.
You cannot apply for a waiting list that is closed until it is reopened by the housing authority. It is not known when the housing authority will announce the next opening.
To apply online, an electronic form must be submitted to the housing authority on the internet. Many online applications require an account to be created to log in, and also a valid email address.
A waiting list sorted by date and time orders applicants who are selected for the waiting list by the date and time the housing authority receives the application. Those who apply earlier will generally be placed higher on the waiting list.
If you are considering applying for a voucher, you may be interested to know who already has a voucher, and what the households tend to look like. Fortunately, we can provide some helpful statistics using HUD's 2023 Picture of Subsidized Households. The following data describes the economic and demographic characteristics of renters who have a Section or project-based voucher issued by Montana Department of Commerce.
At the start of 2024, Montana Department of Commerce was managing 4,393 Section 8 vouchers. Of the total number of vouchers managed, there were 3,163 households with a voucher. This represents 72% of the total voucher allotment for Montana Department of Commerce.
According to HUD, there is a total of 5,656 people living in households with a Section 8 voucher issued by Montana Department of Commerce, with the average number of people per household being 2.
The 3,163 households with a Section 8 voucher at the start of 2024 waited on average 23 months to receive their voucher. Of those voucher-holding households, 443 got their voucher in the last year. This represents 14 percent of voucher holders with vouchers issued by Montana Department of Commerce.
Though Section 8 voucher programs are over-subscribed across the nation with all programs having a waiting list, each month, each housing agency managing vouchers has vouchers that are not issued to renters. This can result from turnover in the program if someone with a voucher buys a home, sees an increase in their income, passes away, or otherwise discontinues the use of their voucher.
The time it takes to transfer voucher funding from one recipient to another can be many months. Managing the Section 8 waiting list, qualifying new voucher holders, and approving new homes or apartments takes time. In addition, in some areas, there is an extreme housing shortage or landlords may refuse to rent to persons using a Section 8 voucher to pay their rent. This results in longer than usual ramp-up times for new voucher holders.
The Montana Department of Commerce Section 8 HCV program that this waiting list covers had 72% of its vouchers utilized by households with 28% unutilized at the start of 2024. This means that 1230 Section 8 vouchers out of a total of 4,393 were in processing at the time HUD reported the data.
Of the 3,163 Section 8 voucher-holding households with the Montana Department of Commerce, 1,098 have at least one child. There are 176 two-parent households in the Montana Department of Commerce voucher program, and 923 single-parent households. There were 966 households with children with a female head of household.
The average annual household income for Montana Department of Commerce Section 8 Voucher holders is $14,799 The average annual income per person is $8,619 The average voucher holder earns 22% of the local Area Median Income.
| Annual Income Range ($) | Number of Households | % of Vouchers |
|---|---|---|
| Less than $5,000 | 127 | 4% |
| $5,000 - $9,999 | 190 | 6% |
| $10,000 - $14,999 | 1,455 | 46% |
| $15,000 - $19,999 | 633 | 20% |
| $20,000+ | 759 | 24% |
Of all voucher holders, 747 (17%) receive the majority of their income from wages and/or business. 44 (1%) voucher-holding households receive the majority of their income from welfare programs like TANF, General Assistance or Public Assistance. 3,207 (73%) voucher-holding households derive the majority of their income from some other source (other than wage or welfare).
The Section 8 Housing Choice Voucher program pays 70% of the cost of rent plus utilities for any household receiving the housing assistance.
For the Montana Department of Commerce Section 8 program, the federal government is providing, on average, $630 per month to each household, for an average annual cost of $7,560. The program as a whole is paying landlords $1,992,690 per month, for an annual economic benefit to landlords of $23,912,280
HUD refers to the portion of rent paid by the Section 8 tenant as the Total Tenant Payment, or Family Expenditure.
For the Montana Department of Commerce Section 8 HCV programs, the average family expenditure is $372 per month or $4,464 per year. The combined payment from all tenants in the program is $1,176,636 per month, which is $14,119,632 per year.
The average total rent paid to Section 8 landlords is $1,002 per month which includes payment contributed by both tenant households and the federal government. This is a program-wide rent average across all bedroom size rentals.
The average cost of utilities for renters in this program is $124 per month. It is important to note this is not the actual cost renters will pay for utilities, but an estimate based on the energy cost estimates of the program.
Of the 4,393 households with a Section 8 voucher, 1,265 (40%) live in a studio or one-bedroom unit, 1,265 (40%) rent a 2-bedroom rental home and 633 (20%) have a 3-bedroom or larger rental. 31% of Housing Choice Voucher recipients are overhoused with more bedrooms than people in the household.
21% of Montana Department of Commerce Section 8 HCV program households have a minority head of household who is Black, Native American, Asian or Pacific Islander; or of Hispanic ethnicity.
| Race | Number of Households | % of Households |
|---|---|---|
| Asian/Pacific Islander | 32 | 1% |
| Black Non-Hispanic | 63 | 2% |
| Native American/Alaskan | 443 | 14% |
| White Non-Hispanic | 2,499 | 79% |
| Black Hispanic | 0 | 0% |
| White Hispanic | 95 | 3% |
| Other Hispanic | 32 | 1% |
| Age Range of Head of Household | Number of Households | % of Households |
|---|---|---|
| Under 24 | 63 | 2% |
| 25-50/td> | 1,139 | 36% |
| 51-61 | 727 | 23% |
| 62-84 | 1,202 | 38% |
| 85 or Older | 63 | 2% |
Section 8 vouchers can be moved to another area.
Once certain conditions are met, a Section 8 voucher may be transferred to another area (known as "porting").Genora Jackson says:
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