- Reports about Trump housing cuts could stop tens of thousands from getting federal rental help.
- Only 1 in 4 families who could get Section 8 housing aid actually do right now.
- Project 2025 wants to change federal programs like Section 8, giving states smaller grants instead.
- Local groups, like in Los Angeles, have already stopped taking new housing applications because they worry about cuts.
- Housing places like Las Vegas might see more people kicked out and rental prices go up and down a lot.
Reports about the Trump administration’s planned 2026 federal budget are worrying people in housing and real estate. These reports point to possible big Trump housing cuts, especially to Section 8 housing. Millions of low-income households depend on this federal help to pay rent. So, these changes could affect many people — renters and landlords alike. And they could impact housing systems in whole areas, like in Las Vegas, where paying rent is already tough.
What Section 8 Housing Is
Section 8 housing, also called the Housing Choice Voucher (HCV) Program, is one of the main ways the federal government helps people find housing. The U.S. Department of Housing and Urban Development (HUD) runs the program. It doesn’t put people in government-owned buildings. Instead, it lets renters find their own housing in the private market. This gives them more choices and makes finding a place to live better.
Main Parts of Section 8
- Renters Choose: People who qualify can look for apartments or homes in any neighborhood. The place just needs to meet HUD’s health and safety rules, and the landlord has to accept the help.
- Help Based on Income: The help covers the difference between what the renter can afford (usually 30% of their income) and the fair rent for the home.
- Good for Landlords: Landlords get steady rent payments straight from the government for their Section 8 renters. This makes it a good choice for landlords in many areas.
According to HUD, over 2.3 million households use Section 8 housing vouchers right now. But this is only about 25% of all families who could get help. This shows there are long waiting lists and not enough money even now, before any planned cuts.
Details on the Planned 2026 Trump Budget and Section 8 Cuts
The Trump administration hasn’t officially put out the 2026 budget plans. But trusted reports from people in politics and housing say there is a serious plan to cut federal rental help. This would likely happen by changing or getting rid of parts of the Section 8 program.
The planned changes seem to come mostly from the conservative Project 2025 ideas. Russell Vought, who heads the White House Office of Management and Budget, helped write it. Vought and others who believe in less government involvement have said they don’t think the federal government should be so involved in housing.
The changes reportedly include:
- Replacing the current system run by HUD with lump sums of money (block grants) sent to states.
- Letting individual states decide how to give out housing help, possibly ending guaranteed help with rent.
- Slowly reducing or stopping money for rental programs run by HUD entirely over time.
This would turn the current system that helps everyone into different programs in each state. This could mean that getting housing help depends a lot on where a family lives.
How Many Americans Will Be Affected By Trump Housing Cuts?
These changes could be very bad for low-income renters. HUD’s current numbers show that about 2.3 million households depend on Section 8 help. But the risk is even bigger because only 1 in 4 families who could get any federal rental help actually do right now.
According to Democrats in Congress, ending temporary housing help from the pandemic will likely force at least 32,000 households off the program. If the administration makes bigger cuts, that number could be much higher. Hundreds of thousands more people could lose their housing stability.
This would cause problems beyond just more homelessness. It would put more stress on local services, shelters, police, and groups that help with housing issues.
Experts Share Their Thoughts
Housing experts across the country are warning about the big risks of taking apart or making the federal rental help program smaller.
👉 Eric Oberdorfer, a policy director at the National Association of Housing and Redevelopment Officials, said:
“If there were a cut to the voucher program, essentially, you would see a decrease to the number of families that are served by the program.”
He said this would make things harder for local housing groups that don’t have a lot of money already. They would have to make difficult choices, like taking people who are currently getting help off the program just to stay on budget.
Other major worries include:
- Waiting lists frozen: People who have already applied might wait forever for help that may never come.
- More people kicked out: Without help, renters might not be able to pay rent, leading to more homelessness.
- Too much pressure on shelters: Shelters and short-term housing programs are already full and might not be able to handle more people needing help.
What’s Happening Locally: The Example of Los Angeles
Early 2024 already showed signs of possible trouble.
In March, the Los Angeles Housing Authority stopped taking all new applications and approvals for Section 8 help. They said it was because of “funding uncertainty at the federal level.” This decision means thousands of qualified renters in the city can’t get help. Meanwhile, average rents in LA are often over $2,500 a month, but pay for service and gig workers hasn’t gone up.
This might be just the start. LA’s quick decision shows how worried local housing departments are everywhere. They don’t know how to plan for the next year’s money. If federal help gets smaller or has strings attached, these groups have tough choices to make — should they help the people they already serve, or risk bigger problems by taking new people without knowing if the money will be there?
The Domino Effect
What happened in Los Angeles might soon happen in:
- New York City
- Chicago
- Miami
- San Francisco
- Las Vegas
These cities have many people who use housing help. If federal rental help goes away, renters in these big city markets might have a much harder time finding stable housing.
A Small Hope: 2024 Bill from Both Parties to Make Section 8 Bigger
Even with the bad federal predictions, there is still a plan in Congress to make Section 8 stronger, not smaller.
Early in 2024, a group of lawmakers from both parties introduced a bill. It aims to make the federal rental help system stronger by:
- Giving more money to HUD overall.
- Making the process for getting help simpler and faster.
- Reaching out more to communities that are not well served.
This plan is part of a larger idea that housing problems lead to other problems — like people losing jobs, kids doing worse in school, and health issues. Supporters say that in the long run, the public pays more by not helping people with housing than by keeping the help going.
But with federal spending being looked at closely and most Republicans not wanting to make social programs bigger, it’s not certain if the bill will pass completely. This is especially true with the administration’s goal to lower the government’s debt by 2026.
How This Affects the Housing Market: Looking at Las Vegas
Perhaps no market is watching more closely than Las Vegas. The city is growing fast, there aren’t many rentals available, and the gap between high and low incomes is getting wider. The city is close to a full-blown problem with how affordable housing is.
According to people who know the local situation:
- Owners who invest in property own much of the housing people can afford to rent.
- Less help with rent would mean their income isn’t as sure.
- Places might stay empty or be rented at market price, meaning fewer affordable places.
The housing market in Las Vegas needs Section 8 not just to keep renters stable, but also so investors know what to expect. A big drop in help could make it hard to guess what demand will be like, encourage areas to become more expensive and push out lower-income residents, or cause properties to be sold off in lower-income areas.
Effects on Real Estate
For landlords and people who work in real estate, the Section 8 program helps keep things steady. It’s a sure way to get some of the rent money. If Trump housing cuts get rid of or hurt the program:
- Renters might move out much more often.
- Properties might not be kept up as well without sure money coming in.
- Renters who can’t afford rent will lose their homes.
When there are fewer renters getting help, it can also make rental prices jump around more. More renters would look for places that aren’t subsidized, making it harder to find a place — but only for those who can pay more.
What This Means for People Who Invest in Real Estate and Agents
People involved in real estate, especially in places like Las Vegas, need to get ready for things to be different.
For people who manage properties:
- Watch closely how tenants pay rent.
- Have tenants with different income levels so that losing help affects you less.
- Be ready for more tenants to move out because they can’t afford rent.
For real estate agents:
- Know which clients might be affected — especially people who are new landlords or own many properties.
- Tell clients about possible changes in federal and local rules.
- Talk to investors who might want to change their plans away from housing that uses government help.
For investors:
- Think again about how much money you expect to make over time from affordable housing units.
- Have plans for what to do if the federal government pulls back help.
- Look at new markets or ways to build housing for working people without needing federal help.
Agents and investors who adjust to these big changes early will have an edge over others. This is especially true as government policy keeps challenging the usual ways housing works.
A Change in How the Country Thinks About Housing
What’s happening isn’t just a fight about money. It’s a big change in the basic idea of how the federal government handles housing.
By moving the job from the federal government to individual states using block grants or programs that offer rewards, the Trump administration’s plan suggests they want less national oversight of housing. They want local policies to play a bigger role. But this shift to states has bigger effects:
- More differences between regions: States with less money or weaker leadership might not protect renters.
- There might be lawsuits about whether people have different access to housing just because of where they live.
- HUD’s role could become smaller, just watching instead of running things. This would make national housing plans less connected.
What’s really at stake is not just if vulnerable renters will get help in 2026. What’s truly at risk is the whole system that Americans have used to find stable housing for many years.
How Renters, Landlords, and People Who Speak Up Can Deal With These Changing Times
Whether you rent and get help, you’re a landlord with a Section 8 renter, or you speak up for housing issues, the next two years will need you to be aware, able to change, and maybe take action.
For Renters
- Stay in touch with your local housing authority. Sign up for emails or newsletters.
- Start or join groups that speak up for renters in your area.
- Keep your paperwork up to date — tax forms, IDs, leases. Rules about who qualifies might change fast.
For Landlords
- Check your mix of tenants and how much you rely on government help.
- Talk to lawyers or local housing reps about your legal duties if you have to kick someone out.
- Think about setting aside money in case federal rent payments stop coming.
For People Who Speak Up and Community Leaders
- Start campaigns to make people aware of how federal rental help cuts could hurt.
- Talk to the media, local politicians, and attend HUD meetings where they ask for input.
- Share numbers on how changes could affect your area. This can help influence talks about new laws.
Final Thoughts: A Turning Point for Housing
America is at an important point for housing. Millions of people rely on federal rental help programs like Section 8 housing. So, the effects of the Trump administration’s reported cuts could completely change life for those with less money. And it could change the housing industry as a whole.
Want to protect your real estate plan in a changing market? Talk to Steve Hawks, a top Las Vegas real estate expert. He can help you figure out how to change your investments and deal with the housing situation as it changes.