{"689015":{"#nid":"689015","#data":{"type":"news","title":"A Successful USDA Program That Has Supported More Than 533,000 Affordable Rental Homes in Rural America is Getting Phased\u00a0Out","body":[{"value":"\u003Cdiv class=\u0022theconversation-article-body\u0022\u003E\u003Cp\u003E\u003Ca href=\u0022https:\/\/www.cbsnews.com\/news\/rent-apartments-cities-near-me-biggest-increases\/\u0022\u003EThe high cost of renting and buying homes in U.S. cities\u003C\/a\u003E is no secret. But this affordability problem isn\u2019t limited to urban regions \u2013 \u003Ca href=\u0022https:\/\/www.whitehouse.gov\/research\/2025\/06\/the-deterioration-of-housing-affordability-in-rural-america\/\u0022\u003Eit affects rural areas as well\u003C\/a\u003E.\u003C\/p\u003E\u003Cp\u003ERural areas, \u003Ca href=\u0022https:\/\/www.fhfa.gov\/blog\/insights\/who-lives-in-rural-america\u0022\u003Ehome to about 25% of Americans\u003C\/a\u003E, benefit from federally supported rental housing programs \u2013 particularly a U.S. Department of Agriculture program to provide affordable homes for low-income residents.\u003C\/p\u003E\u003Cp\u003EThe \u003Ca href=\u0022https:\/\/ruralhome.org\/wp-content\/uploads\/storage\/documents\/rd515rental.pdf\u0022\u003EUSDA\u2019s Section 515 program\u003C\/a\u003E is the primary way that the U.S. government finances affordable rental homes in rural communities. Since its inception in 1963, the program has supported the construction of over \u003Ca href=\u0022https:\/\/pfs2.acl.gov\/strapib\/assets\/Rural_Housing_Programs_Chapter_Summary_50076d51da.pdf\u0022\u003E533,000 apartments, townhouses\u003C\/a\u003E and other small, multifamily rental homes.\u003C\/p\u003E\u003Cp\u003EThe program offers below-market-rate loans to private and nonprofit developers who build and manage residential housing for low-income residents in small towns and rural counties. The terms of the deal between property owners and the government obliges these landlords to keep rents affordable for their occupants for decades, generally restricting rent to about \u003Ca href=\u0022https:\/\/www.hudexchange.info\/programs\/home\/home-income-limits\/\u0022\u003E30% of tenants\u2019 income\u003C\/a\u003E.\u003C\/p\u003E\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\u003Ch2\u003ELast New Loans Were in 2011\u003C\/h2\u003E\u003Cp\u003EPeople who live in Section 515 housing typically \u003Ca href=\u0022https:\/\/ruralhousingcoalition.org\/section-515-rural-rental-housing-loans\/#:%7E:text=The%20USDA%20says%20that%20Section%20515%20housing,more%20than%20$325%20per%20unit%20per%20month\u0022\u003Epay around US$325 per month\u003C\/a\u003E. That\u2019s much less than rural market-rate rents, which \u003Ca href=\u0022https:\/\/www.apartments.com\/blog\/states-with-the-cheapest-rent\u0022\u003Etypically run $800-$1,100 per month\u003C\/a\u003E for modest homes.\u003C\/p\u003E\u003Cp\u003EBecause the \u003Ca href=\u0022https:\/\/nlihc.org\/sites\/default\/files\/AG-2025\/4-131_USDA-Rural-Rental-Housing-Programs.pdf\u0022\u003EUSDA stopped issuing new Section 515 loans in 2011\u003C\/a\u003E, this arrangement is phasing out now as existing loans mature.\u003C\/p\u003E\u003Cp\u003ELoans for about \u003Ca href=\u0022https:\/\/ruralhome.org\/wp-content\/uploads\/storage\/documents\/publications\/rrreports\/rental_housing_for_a_21st_century_rural_america_ui.pdf\u0022\u003E90% of all remaining Section 515 homes\u003C\/a\u003E will mature by 2045, according to the Housing\u2002Assistance Council, a national nonprofit that supports affordable housing efforts throughout rural America. By 2050, the owners of nearly all properties currently in the program\u2019s portfolio are projected to have paid off their mortgages.\u003C\/p\u003E\u003Cp\u003EAnd once most of the owners of these homes exit the Section 515 program, it will have been fully phased out.\u003C\/p\u003E\u003Cp\u003E\u003Ciframe class=\u0022tc-infographic-datawrapper\u0022 style=\u0022border-width:0;\u0022 id=\u00226NXiF\u0022 src=\u0022https:\/\/datawrapper.dwcdn.net\/6NXiF\/1\/\u0022 height=\u0022400px\u0022 width=\u0022100%\u0022 scrolling=\u0022no\u0022 frameborder=\u00220\u0022\u003E\u003C\/iframe\u003E\u003C\/p\u003E\u003Ch2\u003EAn Often-Overlooked Housing Program\u003C\/h2\u003E\u003Cp\u003EAs a \u003Ca href=\u0022https:\/\/spp.gatech.edu\/people\/person\/c9f0cadc-5bb4-5b6f-9eca-bd38a9233993\u0022\u003Epublic policy professor who studies housing\u003C\/a\u003E, I wanted to understand what happens when Section 515 loans mature. I also was interested in what determines whether properties remain affordable or leave the program after the loans are paid off.\u003C\/p\u003E\u003Cp\u003ETo find out, I worked with three other housing policy researchers on a national study that was \u003Ca href=\u0022https:\/\/doi.org\/10.1080\/10511482.2025.2531878\u0022\u003Epeer-reviewed and published\u003C\/a\u003E in Housing Policy Debate in September 2025.\u003C\/p\u003E\u003Cp\u003EAs of 2024, these loans were still supporting \u003Ca href=\u0022https:\/\/pfs2.acl.gov\/strapib\/assets\/Rural_Housing_Programs_Chapter_Summary_50076d51da.pdf\u0022\u003Esome 400,000 homes\u003C\/a\u003E on almost \u003Ca href=\u0022https:\/\/www.usda.gov\/sites\/default\/files\/documents\/32-2024-RHS.pdf\u0022\u003E13,000 properties\u003C\/a\u003E across \u003Ca href=\u0022https:\/\/www.rd.usda.gov\/media\/file\/download\/hac-mfh-ta-fact-sheet.pdf\u0022\u003E87% of all U.S. counties\u003C\/a\u003E.\u003C\/p\u003E\u003Cp\u003EThe roughly 750,000 Americans in those homes are among the nation\u2019s poorest. The average household income of someone living in Section 515 housing in 2023 was just about $16,000 per year, which was \u003Ca href=\u0022https:\/\/seekingalpha.com\/article\/4655566-median-household-income-in-october-2023\u0022\u003Eonly about one-fifth of the national median household income\u003C\/a\u003E, which hovered around $76,600 during the same period in inflation-adjusted 2023 dollars.\u003C\/p\u003E\u003Cp\u003EIn addition to having a very low income, more than 60% of the people enrolled in the program are \u003Ca href=\u0022https:\/\/www.nhlp.org\/wp-content\/uploads\/2018\/05\/Rural-Preservation-Handbook.pdf\u0022\u003Eover 62, have disabilities, or fall into both\u003C\/a\u003E of those categories.\u003C\/p\u003E\u003Ch2\u003EMarket-Rate Options After Maturity\u003C\/h2\u003E\u003Cp\u003EThe vast majority of these affordable rental homes were built in the 1970s through the 1990s and financed with USDA loans that \u003Ca href=\u0022https:\/\/www.cura.umn.edu\/research\/usda-section-515-program-quantitative-analysis\u0022\u003Elast between 30 and 50 years\u003C\/a\u003E.\u003C\/p\u003E\u003Cp\u003EBy 2050, there will be no Section 515 housing left.\u003C\/p\u003E\u003Cp\u003EThe owners of these rental properties no longer have to keep rents affordable once they have paid off their loans. And their owners and tenants may also \u003Ca href=\u0022https:\/\/www.rd.usda.gov\/programs-services\/multifamily-housing-programs\/multifamily-housing-rental-assistancee\u0022\u003Elose access to a USDA rental assistance\u003C\/a\u003E program, which helps keep tenants\u2019 housing costs low.\u003C\/p\u003E\u003Cp\u003EThey can refinance the homes or sell\u2002the properties. They also can continue to charge affordable rents to occupants or convert those units to market rate. Because of this flexibility, a large share of rural affordable housing units could soon be converted to properties rented at market rates.\u003C\/p\u003E\u003Ch2\u003EWhat the Data Shows So Far\u003C\/h2\u003E\u003Cp\u003EFor this study, \u003Ca href=\u0022https:\/\/doi.org\/10.1080\/10511482.2025.2531878\u0022\u003Eour research team analyzed data\u003C\/a\u003E from nearly 15,000 of the Section 515 properties throughout the country, which have been placed in service since 1963 \u2013 including many that are no longer providing rural affordable housing.\u003C\/p\u003E\u003Cp\u003EWe found that the largest factors determining whether a building remains affordable after a Section 515 loan matures are who owns and manages\u2002that property. Buildings owned by for-profit companies are far more likely to leave the program than those that belong to nonprofit housing organizations.\u003C\/p\u003E\u003Cp\u003ENonprofit-owned\u2002buildings, after accounting for building age and local market conditions, are 30% to 40% less likely to convert formerly Section 515 affordable housing into market-rate properties after the owners pay off their loans.\u003C\/p\u003E\u003Cp\u003EAfter analyzing this data, we also concluded that buildings run by small property management companies are more likely to leave the program than those managed by larger ones. Properties where the owner manages the homes are also more likely to exit.\u003C\/p\u003E\u003Cp\u003ELandlords owning more residential properties were also more likely to exit the program. This indicates that larger landlords may be able to afford the renovations and upgrades required to turn their buildings into market-rate housing once restrictions end.\u003C\/p\u003E\u003Cfigure class=\u0022align-center zoomable\u0022\u003E\u003Cp\u003E\u003Ca href=\u0022https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;rect=0%2C124%2C8256%2C4644\u0026amp;q=45\u0026amp;auto=format\u0026amp;w=1000\u0026amp;fit=clip\u0022\u003E\u003Cimg alt=\u0022A symbolic wooden house, containg a stack of $1 bills and a money bag with a dollar symbol, sits next to an alarm clock in a grocery cart.\u0022 src=\u0022https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;rect=0%2C124%2C8256%2C4644\u0026amp;q=45\u0026amp;auto=format\u0026amp;w=754\u0026amp;fit=clip\u0022 srcset=\u0022https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;q=45\u0026amp;auto=format\u0026amp;w=600\u0026amp;h=356\u0026amp;fit=crop\u0026amp;dpr=1 600w, https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;q=30\u0026amp;auto=format\u0026amp;w=600\u0026amp;h=356\u0026amp;fit=crop\u0026amp;dpr=2 1200w, https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;q=15\u0026amp;auto=format\u0026amp;w=600\u0026amp;h=356\u0026amp;fit=crop\u0026amp;dpr=3 1800w, https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;q=45\u0026amp;auto=format\u0026amp;w=754\u0026amp;h=447\u0026amp;fit=crop\u0026amp;dpr=1 754w, https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;q=30\u0026amp;auto=format\u0026amp;w=754\u0026amp;h=447\u0026amp;fit=crop\u0026amp;dpr=2 1508w, https:\/\/images.theconversation.com\/files\/721319\/original\/file-20260302-71-tbznw9.jpg?ixlib=rb-4.1.0\u0026amp;q=15\u0026amp;auto=format\u0026amp;w=754\u0026amp;h=447\u0026amp;fit=crop\u0026amp;dpr=3 2262w\u0022 sizes=\u0022(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px\u0022\u003E\u003C\/a\u003E\u003C\/p\u003E\u003Cfigcaption\u003E\u003Cspan class=\u0022caption\u0022\u003ETime is running out on the nation\u2019s main affordable housing program in rural areas.\u003C\/span\u003E \u003Ca class=\u0022source\u0022 href=\u0022https:\/\/www.gettyimages.com\/detail\/photo\/symbolic-wooden-house-a-stack-of-us1-bills-and-a-royalty-free-image\/2206515182?adppopup=true\u0022\u003E\u003Cspan class=\u0022attribution\u0022\u003EMax Zolotukhin\/iStock via Getty Images Plus\u003C\/span\u003E\u003C\/a\u003E\u003C\/figcaption\u003E\u003C\/figure\u003E\u003Ch2\u003E\u0026nbsp;\u003C\/h2\u003E\u003Ch2\u003EWhy Subsidies and Local Markets Matter\u003C\/h2\u003E\u003Cp\u003EHaving subsidies through other government programs can help keep affordable housing units from being converted to market-rate housing.\u003C\/p\u003E\u003Cp\u003EOne-third of Section 515 properties also get support from other programs, including \u003Ca href=\u0022https:\/\/www.hud.gov\/helping-americans\/housing-choice-vouchers-tenants\u0022\u003ESection 8 vouchers\u003C\/a\u003E and \u003Ca href=\u0022https:\/\/www.novoco.com\/resource-centers\/affordable-housing-tax-credits\/about-lihtc\u0022\u003Elow-income housing tax credits\u003C\/a\u003E. Those tax credits are another federal incentive that\u2019s provided to developers who build and rehabilitate affordable rental housing while allowing lower rents for low-income tenants.\u003C\/p\u003E\u003Cp\u003EThose properties are more likely to remain affordable, even years after some of these tax incentives expire.\u003C\/p\u003E\u003Cp\u003ELocal economic conditions can play a role too. In areas with high unemployment rates, large military populations and low housing inventory, \u003Ca href=\u0022https:\/\/doi.org\/10.1080\/10511482.2025.2531878\u0022\u003Eproperties are also more likely to exit\u003C\/a\u003E the program.\u003C\/p\u003E\u003Cp\u003EThat means the same rural counties experiencing economic or demographic pressures are often the most likely to have a decline in affordable housing units when owners pay off their Section 515 loans.\u003C\/p\u003E\u003Ch2\u003ESteps That Can Be Taken\u003C\/h2\u003E\u003Cp\u003ECongress and the USDA have \u003Ca href=\u0022https:\/\/www.us-hc.com\/blogs\/rhs-makes-funds-available-for-section-515-demonstration-program\/\u0022\u003Etaken some steps\u003C\/a\u003E to slow the loss of affordable housing in rural areas.\u003C\/p\u003E\u003Cp\u003EFor example, the USDA has funded preservation efforts such as the \u003Ca href=\u0022https:\/\/www.rd.usda.gov\/programs-services\/multifamily-housing-programs\/multifamily-preservation-and-revitalization-mpr\u0022\u003EMultifamily Housing Preservation and Revitalization\u003C\/a\u003E pilot program, which provides grants, loan restructuring and other financing tools to help repair aging Section 515 properties and extend their affordability.\u003C\/p\u003E\u003Cp\u003EThese efforts have helped preserve some buildings and support ownership transfers from private sector landlords to nonprofit housing groups. But they spend only tens of millions of dollars per year and focus mainly on maintaining existing properties rather than building new housing.\u003C\/p\u003E\u003Cp\u003EResearchers estimate that \u003Ca href=\u0022https:\/\/www.congress.gov\/crs_external_products\/R\/PDF\/R47044\/R47044.1.pdf\u0022\u003Eabout $5.6 billion in repairs\u003C\/a\u003E would be needed to preserve the affordable housing currently tied to the Section 515 program.\u003C\/p\u003E\u003Cp\u003ESome lawmakers have proposed reforms aimed at doing more than chipping away at the loss of this kind of affordable housing. The bipartisan \u003Ca href=\u0022https:\/\/www.naco.org\/news\/congressional-leaders-reintroduce-bipartisan-bill-protect-rural-housing\u0022\u003ERural Housing Service Reform Act\u003C\/a\u003E, first introduced in 2023 and reintroduced in 2025, would modernize USDA rural housing programs and allow certain rental assistance contracts to continue after mortgages mature. As of early 2026, the bill remains under consideration.\u003C\/p\u003E\u003Cp\u003EOver the next two decades, most of these landlords will pay off their Section 515 loans. Unless the government reinvigorates the program or replaces it with something else, much of rural America\u2019s affordable rental housing could gradually disappear as owners convert all Section 515 properties to market-rate housing.\u003C\/p\u003E\u003Cp\u003EWhether rural communities retain affordable housing will depend not only on what the federal government does, but also on the properties\u2019 owners.\u003C!-- Below is The Conversation\u0027s page counter tag. Please DO NOT REMOVE. --\u003E\u003Cimg style=\u0022border-color:!important;border-style:none;box-shadow:none !important;margin:0 !important;max-height:1px !important;max-width:1px !important;min-height:1px !important;min-width:1px !important;opacity:0 !important;outline:none !important;padding:0 !important;\u0022 src=\u0022https:\/\/counter.theconversation.com\/content\/273637\/count.gif?distributor=republish-lightbox-basic\u0022 alt=\u0022The Conversation\u0022 width=\u00221\u0022 height=\u00221\u0022 referrerpolicy=\u0022no-referrer-when-downgrade\u0022\u003E\u003C!-- End of code. If you don\u0027t see any code above, please get new code from the Advanced tab after you click the republish button. The page counter does not collect any personal data. More info: https:\/\/theconversation.com\/republishing-guidelines --\u003E\u003C\/p\u003E\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\u003Cp\u003E\u003Cem\u003EThis article is republished from \u003C\/em\u003E\u003Ca href=\u0022https:\/\/theconversation.com\u0022\u003E\u003Cem\u003EThe Conversation\u003C\/em\u003E\u003C\/a\u003E\u003Cem\u003E under a Creative Commons license. Read the \u003C\/em\u003E\u003Ca href=\u0022https:\/\/theconversation.com\/a-successful-usda-program-that-has-supported-more-than-533-000-affordable-rental-homes-in-rural-america-is-getting-phased-out-273637\u0022\u003E\u003Cem\u003Eoriginal article\u003C\/em\u003E\u003C\/a\u003E\u003Cem\u003E.\u003C\/em\u003E\u003C\/p\u003E\u003C\/div\u003E","summary":"","format":"full_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EThe high cost of renting and buying homes in U.S. cities is no secret. But this affordability problem isn\u2019t limited to urban regions \u2013 it affects rural areas as well.\u003C\/p\u003E","format":"limited_html"}],"field_summary_sentence":[{"value":"The high cost of renting and buying homes in U.S. cities is no secret. But this affordability problem isn\u2019t limited to urban regions \u2013 it affects rural areas as well."}],"uid":"27469","created_gmt":"2026-03-12 17:07:54","changed_gmt":"2026-04-06 17:35:07","author":"Kristen Bailey","boilerplate_text":"","field_publication":"","field_article_url":"","location":"Atlanta, GA","dateline":{"date":"2026-03-12T00:00:00-04:00","iso_date":"2026-03-12T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"hg_media":{"679671":{"id":"679671","type":"image","title":"Low-income Americans in rural areas can struggle to pay market-rate rents. mphillips007\/iStock via Getty Images Plus","body":"\u003Cp\u003ELow-income Americans in rural areas can struggle to pay market-rate rents. \u003Ca href=\u0022https:\/\/www.gettyimages.com\/detail\/photo\/housing-market-inflation-and-interest-rates-royalty-free-image\/1395524032?adppopup=true\u0022\u003Emphillips007\/iStock via Getty Images Plus\u003C\/a\u003E\u003C\/p\u003E","created":"1773853784","gmt_created":"2026-03-18 17:09:44","changed":"1773853784","gmt_changed":"2026-03-18 17:09:44","alt":"Low-income Americans in rural areas can struggle to pay market-rate rents. mphillips007\/iStock via Getty Images Plus","file":{"fid":"263860","name":"file-20260302-57-nqoztj.jpg","image_path":"\/sites\/default\/files\/2026\/03\/18\/file-20260302-57-nqoztj.jpg","image_full_path":"http:\/\/hg.gatech.edu\/\/sites\/default\/files\/2026\/03\/18\/file-20260302-57-nqoztj.jpg","mime":"image\/jpeg","size":125948,"path_740":"http:\/\/hg.gatech.edu\/sites\/default\/files\/styles\/740xx_scale\/public\/2026\/03\/18\/file-20260302-57-nqoztj.jpg?itok=Yq-cZ8Mz"}}},"media_ids":["679671"],"related_links":[{"url":"https:\/\/theconversation.com\/a-successful-usda-program-that-has-supported-more-than-533-000-affordable-rental-homes-in-rural-america-is-getting-phased-out-273637","title":"Read This Article on The Conversation"}],"groups":[{"id":"1188","name":"Research Horizons"}],"categories":[],"keywords":[{"id":"187915","name":"go-researchnews"},{"id":"194974","name":"go-theconversation"}],"core_research_areas":[],"news_room_topics":[{"id":"71901","name":"Society and Culture"}],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Ch5\u003EAuthor:\u003C\/h5\u003E\u003Cp\u003E\u003Ca href=\u0022https:\/\/theconversation.com\/profiles\/brian-y-an-1461778\u0022\u003EBrian Y. An\u003C\/a\u003E, Co-Director of Center for Urban Research, Director of Master of Science in Public Policy Program, and Assistant Professor of Public Policy, \u003Ca href=\u0022https:\/\/theconversation.com\/institutions\/georgia-institute-of-technology-1310\u0022\u003EGeorgia Institute of Technology\u003C\/a\u003E\u003C\/p\u003E\u003Ch5\u003EMedia Contact:\u003C\/h5\u003E\u003Cp\u003EShelley Wunder-Smith\u003Cbr\u003E\u003Ca href=\u0022mailto:shelley.wunder-smith@research.gatech.edu\u0022\u003Eshelley.wunder-smith@research.gatech.edu\u003C\/a\u003E\u003C\/p\u003E","format":"limited_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}