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The government is concerned that rent takes up so much of a low-income families' monthly budget. In order to subsidize low income housing a policy
The government is concerned that rent takes up so much of a low-income families' monthly budget. In order to subsidize low income housing a policy is implemented where the government will pay of the rent (which they send to the landlord). So, for example, if a family chose to rent an apartment that costs $800 a month the government would pay $400 directly to the landlord and the family would pay $400 from their budget. The Cunningham family, who lives in Milwaukee have an income of $1,000 a month and qualify for this subsidy. Knowing they have to pay only half they optimally choose an apartment to rent listed at $500 a month
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