USDA Rural Housing

USDA Rural Housing Programs – Loans and Grants

Grants and loans designated  for Rural Housing Programs are Administered by Rural Housing Services (RHS) which is a federal agency and part of the USDA Rural Development. RHS provides grants and loans for housing of individuals and families in rural communities. In partnership with state government agencies, Indian tribes, local communities, and non-profits the funding is used to create and provide single family homes, childcare centers, fire and police stations, hospitals, libraries, nursing homes, schools, apartments for low income elderly, and housing for farm laborers.

List of USDA Rural Housing Programs

Rural Rental Housing Program

Rural Rental Housing provides loans to individuals, trusts, limited partnerships, state and local public agencies to create affordable rental housing in rural areas for underprivileged individuals and families. For profit borrowers must proof that are unable to obtain credit elsewhere that will allow them to ask rents affordable to moderate, low, and very low income rural tenants. A very low income household is defined when the income of the individual or family living in the rural area is below 50% of the rural area median income (AMI). Low income household is defined when their income falls between 50% and 80% of the AMI and moderate is capped at $5,500 above the low income limit for the rural area. Rural Rental Housing program gives opportunity to very low, low and moderate income families, elderly persons, and persons with disabilities that live in rural areas to get affordable rental housing.

Rural Rental Assistance Program

This housing program provides rental payments to landlords on behalf of eligible rural tenants which are defined as persons with very low and low income, elderly individuals, and persons with disabilities that are unable to pay basic monthly rent that is already subsidized through other USDA Rural Housing programs.  The Rural Rental Assistance Program pays the difference between the tenant contribution, which is normally 30% of their monthly income and the basic monthly unit rent.

Farm Labor Housing Loans and Grants

This program provides grants and loans to farmers and public housing agencies in association with farmers for the development of affordable housing for domestic farm laborers. Grants are made also to associations of farm workers and Indian tribes. Farm Labor Housing Loans and Grants are provided to eligible applicants to buy, build, improve and repair housing for farm laborers including persons on fish and oyster farms and those engaged in on-farm processing of agriculture products. Loans are offered at 1% interest for 33 years term. Grants are awarded cover up to 90% of the housing development costs

For more information about this program, or to file an application, contact the local Rural Development office in your area.