Rural Housing Crisis: USDA's Section 515 Program at Risk

Rural Americas Affordable Housing Crisis: The Fading USDA Section 515 Program

The USDAs Section 515 program, established in 1963, has provided affordable rentals in small towns and countryside areas, with rents around $325 a month. However, no new loans since 2011 have led to a slow decline of the program. As loans from the 1970s and 1990s mature, owners can raise prices or sell, potentially causing all 400,000 remaining units to disappear by 2050. This issue disproportionately affects low-income seniors and people with disabilities in 87% of U.S. counties.

Research shows nonprofits maintain affordability 30-40% more often than for-profits. Small managers and big landlords with multiple buildings tend to exit faster, while other subsidies like tax credits help keep rents down. Efforts to extend affordability and shift ownership to nonprofits are underway, but bold action is needed to prevent a widespread housing squeeze in rural communities.

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