New Terner Center and RAND Report on Improving HCV Utilization

Note: On October 9, in a NAHRO webinar, experts from the Cooper Housing Institute, the Terner Center at Berkeley, and RAND will present their latest research on the Housing Choice Voucher program, applicable to housing agencies of all sizes and jurisdictions. The webinar is free and open to all. Register here.

By: Tushar Gurjal, Senior Policy Manager

October 8, 2025 – In mid-September, researchers from the Terner Center and the RAND Corporation, with funding from the Cooper Housing Institute, released a report titled “Improving Utilization in the Housing Choice Voucher Program.” The report focuses on ways that PHAs can maximize their Housing Choice Voucher (HCV) Program resources. It also looks at ways that PHAs can maximize both unit utilization and budget utilization.

The study the report is based on used both quantitative and qualitative data collection. On the quantitative front, the study looked at 521 PHAs that administer more than 1,000 vouchers each. It grouped PHAs into clusters that shared similar characteristics and local market conditions. Additionally, to gather qualitative data, the study interviewed “personnel from a variety of PHAs to allow for the possibility that the approaches that work in one setting may not be successful in a different setting.”

The report found three consistent themes throughout the voucher program. First, the budget was the limiting factor in serving additional households. Second, many factors that impacted utilization were outside of a PHA’s control (e.g., low rental vacancy rates and high rents). Third, despite the first two trends, it was still possible for many PHAs to potentially increase unit utilization and budget utilization.

The report makes the following recommendations for PHAs:

• “PHAs should overissue vouchers using key metrics (including success rates, program attrition, responsiveness of waitlists, and [per unit costs] PUCs) to determine a context-specific overissuance rate.”
• “PHAs should consider the seasonality of their rental market when designing an issuance strategy.”
• “PHAs should weigh the trade-off between low utilization and the risk of shortfall. They should also consider accepting a higher risk of experiencing temporary shortfall as part of an issuance strategy aimed at maximizing budget utilization.”
• “PHAs with low success rates should extend allowable search time to 180 days and allow even longer search times for households facing high barriers related to tight housing markets.”
• “Adopting geographically based payment standards [e.g., Small Area FMRs] can help to open new areas to voucher holders, but the best approach might depend on local factors.”
• “Adopting higher payment standards can help with addressing tight housing markets if area rents are consistently outpacing HUD rent ceilings, but doing so comes with trade-offs.”
• “Develop engagement strategies to better recruit and retain landlords, including outreach, dedicated staff, and cash incentives.”
• “Provide accessible staff that help connect voucher holders with units, including through housing navigation and cash assistance.”
• “In the absence of available funding, PHAs can leverage partnerships with other organizations (including city and county governments, nonprofits, and philanthropies) to connect tenants to additional services.”
• “PHAs in tight housing markets or places with high or rising homelessness rates should project-base vouchers up to their PBV program cap.”
• “PHAs with sufficient capacity should pursue new development through the Restore Rebuild program.”
• “PHAs with real estate teams and expertise should support development and preservation efforts outside the HCV Program and, where needed, coordinate pathways for voucher holders to access these units.”

The report makes the following policy recommendations for HUD, Congress, and other interested stakeholders:

• “HUD should expand existing efforts to offer robust training and technical assistance for using the Two-Year Tool in a locally tailored context.”
• “In addition to providing initial annual guidance on budget scenarios each year, HUD should provide updates on evolving congressional budgeting to improve PHA planning.”
• “Grant non-MTW PHAs more flexibility, including fungibility between HAP and administrative dollars.”
• “Ease program entry and continuance requirements for tenants and landlords.”
• “Provide flexible, supplementary funding for PHAs to increase lease ups (similar to the EHV program).”
• “Expand the flexibility to raise the program cap on PBVs to non-MTW PHAs, subject to review of local strategic needs.”
• “Support PHAs’ use of the Restore Rebuild program by offering technical assistance and adjusting or eliminating the Faircloth limit.”
• “Align intake processes and requirements among PBVs, other subsidies, and tenant eligibility and prioritization systems.”

Finally, the report makes the following policy recommendations for State and local governments:

• “Continu[e] to develop housing stock for voucher holders to access.”
• “Provid[e] services, such as housing navigation and case management, to voucher holders.”
• “Scal[e] other models of subsidized affordable housing.”
• “Provid[e] low-income renters with direct cash transfers.”
• “Develop[] local voucher programs to reach more households in need of rental assistance.”

The RAND website hosting the report can be found here.

The full report can be found here.