Renters across the United States are facing growing challenges in today’s housing market. Rising rents, a shortage of affordable homes, and shifting federal policies make it harder for many people to find and keep stable housing. While new federal investments and policy proposals offer some hope, they also highlight the widening gap between long-term solutions and renters’ urgent needs right now.
For organizations like the Rental Housing Resource Center (RHRC), knowing these federal shifts is essential to supporting communities on the ground.
A Crisis Years in the Making
The current housing crisis is not new—but it is intensifying.
The U.S. Department of Housing and Urban Development (HUD) reports that over 8.46 million renter households have “worst case housing needs.” This means they either spend more than half their income on rent, live in unsafe conditions, or both (HUD, 2025).
At the same time, there is a severe shortage of affordable housing. In 2023, there were only 59 affordable units available for every 100 very low-income renters and just 38 units for every 100 extremely low-income renters (HUD, 2025).
More broadly, affordability challenges are widespread, with tens of millions of renters facing cost burdens due to rising housing costs (Joint Center for Housing Studies, 2025).
Because rent is rising faster than income for many, millions of families must make tough choices between paying for housing, food, healthcare, and other basic needs.
Federal Funding Is Increasing—But Focused on Stability
In response, the federal government has increased funding for key housing programs. The FY2026 federal budget allocates $77.3 billion to HUD, representing a $7.2 billion increase from the previous year (Bipartisan Policy Center, 2026).
Notably:
- Tenant-based rental assistance (like Housing Choice Vouchers) increased by $2.4 billion.
- Project-based rental assistance increased by $1.7 billion (Bipartisan Policy Center, 2026).
These investments are important, but they mostly help maintain current programs instead of making assistance available to more people.
For RHRC, this highlights an important reality: many renters still manage the housing system without federal support, underscoring the importance of local support and tools.
A Shift Toward Building More Housing
Federal policymakers are steadily focused on increasing housing supply.
Bipartisan proposals such as the ROAD to Housing Act and the Housing for the 21st Century Act aim to expand development, reform financing systems, and preserve existing housing stock (Terner Center, 2026).
In addition, legislation passed in 2025 significantly expanded the Low-Income Housing Tax Credit (LIHTC) program. This includes:
- A 12% increase in housing tax credits beginning in 2026
- Lower financing thresholds to encourage development (Williams Mullen, 2025).
These changes could help create over 1 million new affordable rental homes over the next decade (Northmarq, 2025).
However, while these policies aim to increase the number of homes in the long run, they do not provide immediate relief for renters struggling with high rents or at risk of losing their homes right now.
Rental Assistance Programs Encounter Uncertainty
While funding remains relatively stable, federal rental assistance programs are undergoing potential changes.
The Housing Choice Voucher (Section 8) program continues to serve millions, but policymakers are proposing:
- Work requirements
- Time limits on assistance
- Stricter eligibility rules (USA Housing Information, 2026).
At the same time, pandemic-era supports have ended. The federal Emergency Rental Assistance (ERA) program, which provided more than $46 billion in aid, officially concluded in 2025 (U.S. Department of the Treasury, 2026).
This creates a significant gap, leaving many renters without the emergency safety net that helped prevent widespread displacement during the COVID-19 pandemic.
Evictions in a Post-Moratorium Era
Another major shift is the return of evictions to pre-pandemic conditions.
The federal eviction moratorium implemented during COVID-19 ended following a Supreme Court decision in August 2021 (LegalClarity, 2025).
Today, eviction protections vary widely by state and local jurisdiction, creating an uneven landscape for renters across the country (LegalClarity, 2025).
Some federal protections remain. For example, the CARES Act still requires a 30-day notice before eviction for certain federally backed properties (Congressional Research Service, 2026).
Additionally, HUD’s Eviction Protection Grant Program provides legal assistance to tenants and has already supported over 44,000 households in avoiding eviction (HUD, n.d.).
Overall, eviction prevention has moved from broad, universal protections to more targeted programs. These programs can be harder for renters to find and use without help.
Why This Matters for Renters and RHRC
Taken together, these federal developments highlight both progress and persistent gaps.
Federal investments are increasing, and new policies aim to expand housing supply. However, renters continue to face:
- A severe shortage of affordable housing
- Limited access to rental assistance
- The loss of emergency pandemic supports
- Complex and evolving eligibility requirements
That’s why organizations like the Rental Housing Resource Center are so important; they help renters understand their options and find support in a complicated system.
RHRC can provide essential services, including:
- Education on tenant rights
- Guidance on available assistance programs
- Eviction prevention resources
- Support navigating complex housing systems
Looking Ahead
Federal housing policy in 2026 shows both progress and limits. More funding and new development incentives are steps forward, but they don’t fully solve the urgent problems renters face today.
Until housing becomes more affordable and accessible nationwide, local support systems will remain essential.
- Bipartisan Policy Center. Appropriations Update: Final FY2026 THUD Funding Summary.
https://bipartisanpolicy.org/explainer/appropriations-update-final-fy2026-thud-funding-summary/ [bipartisanpolicy.org] - Congressional Research Service. CARES Act Eviction Notice Requirements: Background and Recent Developments.
https://crsreports.congress.gov [congress.gov] - Joint Center for Housing Studies of Harvard University. The State of the Nation’s Housing 2025.
https://www.jchs.harvard.edu/state-nations-housing-2025 [jchs.harvard.edu] - Northmarq. 2025 Affordable Housing Tax Changes: Understanding LIHTC, Bonds, and Opportunity Zones.
https://www.northmarq.com [northmarq.com] - Terner Center for Housing Innovation. 2026 Federal Housing Policy Preview.
https://ternercenter.berkeley.edu/blog/2026-federal-housing-policy-preview/ [ternercent...rkeley.edu] - U.S. Department of Housing and Urban Development (HUD). Worst Case Housing Needs: 2025 Report to Congress.
https://www.huduser.gov [huduser.gov] - U.S. Department of Housing and Urban Development (HUD). Eviction Protection Grant Program.
https://www.huduser.gov/portal/eviction-protection-grant.html [huduser.gov] - U.S. Department of the Treasury. Emergency Rental Assistance Program.
https://home.treasury.gov [home.treasury.gov] - USA Housing Information. Section 8 Updates Shake Housing Policy as 2026 Changes Emerge.
https://usahousinginformation.com [usahousing...mation.com] - Williams Mullen. Low-Income Housing Tax Credit Reform: The One Big Beautiful Bill Act’s Effect on Affordable Housing.
https://www.williamsmullen.com
