Deep / Shallow Housing Subsidy Programs

Alex Schwartz uses this terminology in his introduction to highlight that Deep Housing Subsidy Programs such as Public Housing and Housing Choice Vouchers set the monthly rent as a fraction (typically 30%) of a tenants income. Under these programs, when the tenant’s income changes so does the rent. Shallow Housing Subsidy Programs conversely, like the Low-Income Housing Tax Credit, set rents at a below market rate but don’t peg it to a tenant’s income. The rate is typically higher than what is affordable to very low income households.