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The USDA rental programs
| Program | What it is | Who it serves |
|---|---|---|
| Section 515 Rural Rental Housing | Direct loans to build and maintain apartments in rural areas | Very low-, low-, and moderate-income families, older adults, and people with disabilities |
| Sections 514/516 Farm Labor Housing | Loans and grants for housing for farmworkers | Domestic farm laborers and their families (on-farm or off-farm) |
| Section 521 Rental Assistance | Project-based subsidy in 515 and farm labor properties | Lowest-income tenants in those properties |
| Rural Development Vouchers | Tenant-based vouchers | Tenants in properties leaving the program through prepayment or foreclosure |
Section 515 properties are often small—many have fewer than 30 units—and are frequently the only affordable rentals in their town. A large share of residents are older adults or people with disabilities, and most tenants receive some form of rental assistance.
Who qualifies
- Income: very low (50% of AMI), low (80% of AMI), or moderate income as USDA defines it. When Section 521 Rental Assistance becomes available in a property, very low-income households get priority.
- Location: the property must be in a USDA-eligible rural area; you do not have to already live there.
- Screening: each property has written tenant-selection criteria; fair-housing law applies.
- Farm labor housing: at least one household member must receive a substantial portion of income from farm labor (retired or disabled farmworkers may qualify).
How rent is calculated
Each property has a USDA-approved basic rent (the minimum needed to operate) and a note rate rent (the higher market-based ceiling).
- Without Rental Assistance: you pay the higher of the basic rent or 30% of adjusted income, but no more than the note rate rent.
- With Section 521 Rental Assistance: you generally pay 30% of adjusted income (or other amounts under program rules if higher), and USDA pays the difference up to the approved rent.
- Utility allowance: if you pay utilities, the allowance is subtracted from your tenant contribution.
Rental Assistance slots are limited. A property may have RA for only some units, so ask whether RA is available and whether there is a separate waiting list for it.
How to find and apply
- Search USDA’s Multi-Family Housing Rentals site (rdmfhrentals.sc.egov.usda.gov) by state and county. It lists properties, contacts, unit sizes, and whether Rental Assistance is available.
- Call each property manager to ask about vacancies, waiting lists, and RA.
- Apply at each property. There is no central list; each property keeps its own.
- Keep in contact. Update your application when your contact information or household changes.
Living in a USDA property
- Annual recertification of income and household is required.
- Leases are generally one year, and USDA rules require good cause for owners to terminate or refuse to renew a lease, with written notice.
- Grievances: tenants have a grievance and appeal process for adverse actions by the owner. Ask management for the procedure.
- Repairs: report maintenance issues in writing; if unresolved, contact the USDA Rural Development state office that oversees the property.
- VAWA protections apply.
When properties leave the program
Many Section 515 mortgages are reaching maturity. When a loan is paid off at maturity or prepaid, USDA’s affordability requirements—and Section 521 Rental Assistance—can end. To protect tenants:
- USDA may offer the owner incentives or restructuring to stay in the program.
- Eligible tenants may receive Rural Development Vouchers, which work much like Housing Choice Vouchers and can be used in the same property or elsewhere.
- Nonprofit buyers sometimes purchase properties to preserve them.
If you receive a notice about prepayment, maturity, or sale, contact the USDA Rural Development state office and a legal aid organization quickly. The Housing Assistance Council and the National Housing Law Project publish tenant resources on USDA preservation.
Frequently asked questions
Who owns USDA rental properties?
Private owners, nonprofits, cooperatives, and public agencies that borrowed from USDA Rural Development. A management company runs day-to-day operations and takes applications; USDA oversees compliance.
What counts as rural?
USDA uses its own eligibility maps, which generally include open country and towns with populations up to about 35,000 that are not part of a larger urban area. Use USDA’s property search to see which properties exist near you.
How much is rent with USDA Rental Assistance?
With Section 521 Rental Assistance, you generally pay 30% of your adjusted income (or other amounts set by program rules, such as 10% of gross income or a welfare shelter amount if higher), and USDA pays the rest of the approved rent.
Can I use a Section 8 voucher in a USDA property?
Yes. Many USDA properties accept Housing Choice Vouchers, especially for units without Section 521 Rental Assistance. The owner cannot collect more than the USDA-approved rent.
What if the property’s USDA mortgage is paid off?
When a Section 515 loan matures or is prepaid, affordability restrictions and Rental Assistance can end. Eligible tenants may receive a Rural Development Voucher to help with rent. You should receive notice; contact USDA Rural Development and legal aid.
Sources and verification
Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.
- Multi-Family Housing Rentals (property search)USDA Rural Development
- Multi-Family Housing Rental AssistanceUSDA Rural Development
- Multifamily Housing Direct Loans (Section 515)USDA Rural Development
- Rural Rental Housing (Section 515)Housing Assistance Council
- 7 CFR Part 3560 — Direct Multi-Family Housing Loans and GrantsElectronic Code of Federal Regulations
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