The Ralph and Goldy Lewis Center for Regional Policy Studies

The Housing Choice Voucher (HCV) program is the nation’s primary rental assistance program for low-income households, serving more than 2.3 million households each year. Yet a substantial share of voucher recipients never successfully lease a unit. Research estimates that voucher utilization rates typically range from 60% to 80%, with barriers including tight rental markets, landlord refusal to accept vouchers, and the significant costs households incur while searching for housing. Voucher holders may screen dozens of units before finding one that meets program requirements, while application fees, transportation costs, security deposits, and other upfront expenses can further impede successful lease-up.

Policymakers have pursued several strategies to improve voucher utilization, including direct rental assistance (DRA). This report focuses on a specific form of DRA identified by the Fund for Guaranteed Income (F4GI) and housing authorities as a potential tool to improve voucher utilization: a “cash on-ramp.” These short-term funds would help prospective voucher tenants cover the upfront costs of securing housing, including security deposits, utilities, transportation, and other expenses associated with the housing search. The report describes the attributes and role of a cash on-ramp program, along with policy and research design considerations for making them effective and evaluating their impact.