Michigan State Housing Development Authority: the complete Section 8 guide

Last updated 2026-07-09

What is the Michigan State Housing Development Authority and what does it do?

MSHDA is a state public body corporate created in 1966 under the State Housing Development Authority Act, Public Act 346 of 1966 ^[1]. It finances affordable housing construction and rehabilitation, allocates the Low-Income Housing Tax Credit in Michigan, and runs a direct Housing Choice Voucher (Section 8) program that works statewide alongside local Public Housing Authorities.

The federal-state relationship matters here. Section 8 is a federal program funded by HUD and governed by 24 CFR Part 982, but HUD contracts with state agencies like MSHDA and with individual city or county PHAs to run it locally ^[2]. MSHDA acts as a PHA itself. That means it has its own Annual Contributions Contract with HUD, its own voucher inventory, and its own administrative rules inside HUD's guardrails. For a plain explanation of how that split actually works, see is section 8 federal or state.

On the financing side, MSHDA issues tax-exempt bonds, administers HOME and Community Development Block Grant money, and hands out Low-Income Housing Tax Credits to developers building affordable units around the state. That side of the house doesn't put vouchers in tenants' hands directly. It builds the affordable stock those vouchers often get used in.

MSHDA's headquarters is in Lansing. The agency runs through regional offices and a network of local PHAs, nonprofits, and housing counseling agencies.

How does MSHDA's Section 8 program differ from local Michigan PHAs?

Michigan has roughly 57 local PHAs on top of MSHDA's own program ^[3]. The bigger ones, like the Detroit Housing Commission, the Grand Rapids Housing Commission, and the Lansing Housing Commission, run their own voucher programs under their own HUD contracts. MSHDA's direct program mostly covers the places that lack a strong local PHA, rural counties in particular.

Here's the practical difference for a tenant. Apply through MSHDA and your voucher is usable almost anywhere in the state MSHDA's program reaches, which is nearly all of it. Apply through a local PHA and you typically have to lease up inside that PHA's jurisdiction first, though porting out later is allowed under 24 CFR 982.353 ^[2].

For landlords, the PHA that administers your tenant's voucher decides who signs your Housing Assistance Payments (HAP) contract, who inspects the unit, and who you call when something breaks. A unit in Alpena rented to a MSHDA voucher holder means MSHDA is your point of contact, not a city office.

Some local PHAs that used to run independent programs have folded their administration into MSHDA over the years, so the map shifts. Always confirm which agency holds the voucher by asking the tenant to show their voucher document. It lists the issuing PHA right on it.

Who qualifies for MSHDA's Housing Choice Voucher program?

Federal income limits control eligibility. HUD sets those limits by household size and area median income (AMI) for each metropolitan statistical area and non-metro county. To get a voucher, a household generally has to fall at or below 50 percent of AMI, which HUD calls the very low income limit ^[4]. By statute, at least 75 percent of new vouchers issued each year go to households at or below 30 percent of AMI, the extremely low income tier ^[2].

Some real numbers. In 2025 the 50 percent AMI limit for a family of four in the Lansing-East Lansing MSA was about $38,550, and the 30 percent limit was about $23,150. In metro Detroit (Wayne, Oakland, and Macomb counties), the 50 percent limit for a family of four was about $43,650 ^[4]. These figures reset every year when HUD publishes new income limits, usually in April.

Other rules apply. At least one household member has to be a U.S. citizen or an eligible noncitizen. The household can't owe money to a PHA from a prior termination or hidden income. People with certain drug-related or violent criminal convictions can be denied, though MSHDA's screening follows HUD's framework at 24 CFR 982.552 and 982.553 ^[2].

Household size drives the voucher bedroom size and the payment standard tied to it. MSHDA uses HUD's occupancy guidelines: one bedroom fits one to two people, two bedrooms fit two to four, and so on, with the real determination depending on who's in the household.

How do you apply and what does the MSHDA waitlist look like?

MSHDA opens its waitlist in windows, not year-round. When the list is open, households apply online through MSHDA's portal, or, for people without internet access, in person at a MSHDA regional office. The agency uses either a lottery or a date-and-time stamp depending on the current policy, so getting your application in on day one can matter a lot.

The wait is long. Honest answer: nobody publishes a reliable statewide average, but MSHDA has publicly cited waits of three to seven years for some programs, and PHAs in high-demand areas like Ann Arbor and Grand Rapids have gone through even longer closures ^[5]. HUD's Picture of Subsidized Households data shows Michigan with more than 38,000 vouchers in use in recent reporting, and demand runs far past supply ^[3].

Preferences can move you up. MSHDA gives priority to households experiencing homelessness, households displaced by disaster or government action, veterans in certain programs, and survivors of domestic violence under the Violence Against Women Act ^[6]. If you qualify for one, document it carefully when you apply.

Reach the top of the list and MSHDA contacts you for a formal eligibility interview and income verification. Once approved, you get a voucher with a search period, usually 60 to 120 days under 24 CFR 982.303, and MSHDA can grant extensions. Fail to find an approved unit in time and you lose the voucher and go back to the line.

For waitlist strategy and what to do while you wait, the hud housing apartments guide covers the full picture.

What payment standards does MSHDA use and how much does a landlord actually get?

Payment standards are the ceiling HUD authorizes a PHA to pay each month for a given bedroom size in a given area. MSHDA sets its payment standards off HUD's Fair Market Rents (FMRs) for each Michigan county or metro, somewhere between 90 and 110 percent of FMR under standard authority, or up to 120 percent with HUD's Small Area FMR or exception payment standard approval ^[2].

HUD publishes new FMRs every October for the coming fiscal year. For FY 2025, selected Michigan two-bedroom FMRs looked like this:

Area	FY 2025 Two-Bedroom FMR
Ann Arbor MSA	$1,537
Detroit-Warren-Dearborn MSA	$1,183
Grand Rapids-Kentwood MSA	$1,105
Traverse City area	$1,088
Lansing-East Lansing MSA	$1,027
Marquette (non-metro)	$771

Those are FMRs, not MSHDA payment standards. MSHDA can set its actual standard anywhere in that 90 to 110 percent band, so ask MSHDA for the current payment standard in your specific county before you count on a number ^[7].

The tenant pays the gap between the payment standard (or the actual rent, whichever is lower) and 30 percent of adjusted monthly income. Tenants can pick units renting above the payment standard, but they can't pay more than 40 percent of adjusted monthly income toward rent in the first year of the lease, per 24 CFR 982.508 ^[2].

Landlords get the HAP payment straight from MSHDA (or the applicable PHA) each month, usually by ACH on the first business day. The tenant pays their share separately. If the tenant skips their portion, that's not MSHDA's problem to solve, and that's the one thing landlords most need to understand before they sign a HAP contract.

What inspection requirements does MSHDA impose on landlords?

Every unit rented with a MSHDA Housing Choice Voucher has to pass a Housing Quality Standards (HQS) inspection before the HAP contract starts, then pass re-inspections annually and any time MSHDA has cause ^[2]. HQS lives in 24 CFR 982.401 and covers 13 performance categories, including sanitary facilities, food preparation and refuse disposal, space and security, the thermal environment, electricity, structure and materials, lead-based paint, water supply, and working smoke detectors.

One failed item can stall a lease. Common Michigan failures include dead smoke detectors, missing window locks, peeling paint in pre-1978 housing (which triggers lead rules), heating that can't keep up, and appliances the landlord promised to supply but doesn't work. Inspectors write up failures and set a deadline, often 24 hours for life-threatening items and 30 days for standard repairs.

MSHDA has been moving toward HUD's updated inspection protocol under the Housing Opportunity Through Modernization Act (HOTMA). Full rollout timing keeps shifting, so confirm the current standard directly with MSHDA before you schedule.

Landlords new to vouchers tend to underestimate the detail. Units that sail through a regular code inspection sometimes fail HQS, because HQS has requirements code doesn't, like minimum bedroom dimensions and a handrail on any stairway with more than three risers.

Can a MSHDA voucher holder move to another county or state?

Yes, with conditions. Moving within Michigan on a MSHDA voucher is usually simple. Once you finish your initial 12-month lease, you can ask to move and MSHDA issues a new voucher for the new area. If the new unit sits in a county with different payment standards, the new standard applies.

Moving to another state is called portability, and it's a federal right under 24 CFR 982.353 ^[2]. MSHDA (the initial PHA) sends your voucher to the receiving state's PHA, which either absorbs it into their own program or bills MSHDA back for it. For accounts from people who've done it, the has anyone ported their section 8 to another state thread is worth reading, and can section 8 certificates be ported between states covers the legal mechanics.

The main catch: you can only port after 12 months on your current voucher, unless you're fleeing domestic violence or moving to a jurisdiction where a family member who provides your care lives. Some receiving PHAs keep their own porting waitlists and won't absorb you fast. Start the process at least 60 days before you want to move.

What rights do MSHDA voucher tenants have that landlords must respect?

Federal fair housing law covers every Housing Choice Voucher tenancy. Landlords can't discriminate based on race, color, national origin, religion, sex, disability, or familial status under the Fair Housing Act ^[8]. Michigan goes further and treats source of income as a protected class under the Elliott-Larsen Civil Rights Act as amended, so a Michigan landlord can't refuse to rent to someone only because they hold a voucher ^[9].

That last point carries weight. Because source of income is protected in Michigan, a "we don't accept Section 8" ad is illegal here. A landlord who openly turns away voucher holders is risking a civil rights complaint to the Michigan Department of Civil Rights or a private lawsuit.

Tenants also have VAWA protections. Under the Violence Against Women Act, reauthorized in 2013, and its HUD implementation rule, MSHDA cannot terminate a voucher solely because of criminal activity directly tied to domestic violence, dating violence, sexual assault, or stalking ^[6]. A tenant can also request an emergency transfer to a new unit when their safety is at risk.

If MSHDA moves to terminate a voucher for any reason, the tenant has the right to an informal hearing under 24 CFR 982.555 ^[2]. Ask for that hearing in writing inside the window stated in the termination notice, usually 10 to 30 days. Miss it and the appeal is almost always gone.

How does MSHDA handle the landlord side: HAP contracts, rent increases, and inspections?

When a voucher tenant wants your unit, the sequence runs like this. The tenant presents a voucher and a Request for Tenancy Approval (RFTA), the two of you agree on rent, MSHDA checks rent reasonableness against comparable unassisted units in the area, the unit gets inspected, and then MSHDA issues a HAP contract for you to sign.

Rent reasonableness is real. MSHDA will not approve a rent higher than what similar unassisted units rent for in the same area, per 24 CFR 982.507 ^[2]. Ask $1,400 for a two-bedroom when MSHDA's data shows comparable units at $1,200, and they cap the approved rent at $1,200. Landlords who assume they can charge a premium because the government is paying get told no all the time.

Rent increases need advance notice and MSHDA approval. You can't raise rent mid-lease. At renewal, send the increase request to MSHDA at least 60 days before the new lease start date (many PHAs want 90). MSHDA re-runs rent reasonableness and either approves or comes back with a lower number.

HAP contracts run with the lease and the specific unit. If the tenant moves, the HAP contract ends. You don't get to hand it to a new tenant. If a tenant abandons the unit, tell MSHDA right away, because HAP payments stop as of the date HUD deems the unit vacated.

Landlords weighing whether to join can use tools like the VoucherReady landlord kit to prep unit documentation and read the HAP contract terms before signing. Understood going in, the program is predictable income.

What other affordable housing programs does MSHDA run beyond Section 8?

MSHDA allocates Michigan's Low-Income Housing Tax Credit (LIHTC) under Section 42 of the Internal Revenue Code. LIHTC-financed properties have to keep rents affordable for households at 50 to 60 percent of AMI for at least 30 years. Michigan has more than 100,000 LIHTC units according to MSHDA's own program data ^[10]. These aren't voucher units, but they offer below-market rent without a voucher.

MSHDA also runs the Michigan Down Payment Assistance program, several homeownership loan products, and the Homeowner Assistance Fund (HAF), funded by the American Rescue Plan Act, which helped Michigan homeowners with pandemic-related mortgage delinquency. HAF stayed active through 2026 ^[11].

For renters without a voucher who can't find subsidized housing, MSHDA's Housing Education and Counseling program connects people with HUD-approved counselors who help with budgeting, rental applications, and tenant rights. That service is free.

MSHDA administers the HOME Investment Partnerships Program and the Emergency Solutions Grant in Michigan too, both of which fund local nonprofits and shelters. If you're looking at supportive housing, permanent supportive housing, or rapid rehousing after homelessness, MSHDA is somewhere in the funding chain even when a local nonprofit is your direct contact.

Where can Michigan residents get MSHDA voucher help and how do you contact them?

MSHDA's main office is at 735 E. Michigan Avenue, Lansing, MI 48912. The agency's housing hotline and program contacts live on the MSHDA website at michigan.gov/mshda ^[12]. For voucher-specific questions, MSHDA runs a rental assistance line separate from its homeownership and development programs.

For local PHA programs MSHDA doesn't run directly, HUD's PHA locator at hud.gov lets you search by ZIP code and returns the responsible agency ^[13]. In Detroit, that's the Detroit Housing Commission. In Grand Rapids, the Grand Rapids Housing Commission. Don't assume MSHDA handles every Michigan voucher. Confirm first.

HUD-approved housing counseling agencies in Michigan can help you prep a waitlist application, understand your rights, or fight a voucher termination. HUD's counseling agency locator at hud.gov lists agencies by state and service type ^[13].

If you want to track open waitlists across all Michigan PHAs and prep applications, resources like hud housing apartments explain where to look. VoucherReady also runs free waitlist tracking and notification alerts so you don't miss an opening. Missing a two-week window after a seven-year wait is a real thing that happens to people.

Frequently asked questions

Is MSHDA the same as a local housing authority in Michigan?

No. MSHDA is a state-level agency that acts as its own PHA and works alongside local PHAs. Cities like Detroit, Grand Rapids, and Ann Arbor have separate housing commissions with their own HUD contracts. MSHDA directly runs vouchers in areas that lack a strong local PHA, especially rural counties. You may need to apply to both MSHDA and your local PHA, because they keep separate waitlists.

How long is the MSHDA Section 8 waitlist right now?

MSHDA doesn't publish a real-time estimate, and the list opens and closes. When it has been open, MSHDA has cited waits ranging from three to seven or more years for some areas. Local PHAs in high-demand cities like Ann Arbor can run even longer. Check michigan.gov/mshda for current waitlist status and sign up for notifications, because open windows are short.

Can Michigan landlords legally refuse Section 8 vouchers?

No. Michigan's Elliott-Larsen Civil Rights Act includes source of income as a protected class, making it illegal for a landlord to refuse a qualified tenant only because they use a Housing Choice Voucher. A landlord can still screen on credit, rental history, and income, but "we don't take Section 8" is a civil rights violation in Michigan. File a complaint with the Michigan Department of Civil Rights.

What are MSHDA's current payment standards for 2025?

MSHDA sets payment standards off HUD Fair Market Rents by county. FY 2025 two-bedroom FMRs run from around $771 in Marquette to $1,537 in the Ann Arbor MSA. MSHDA's actual standard sits at 90 to 110 percent of FMR. Contact MSHDA or check the website for current county-level payment standard tables, since these update every October.

Does MSHDA administer project-based vouchers as well as tenant-based?

Yes. MSHDA runs both tenant-based Housing Choice Vouchers, which move with the person, and project-based vouchers (PBV), which attach to specific units in particular developments. If you're in a PBV unit, you can't take that subsidy with you when you move, though after 12 months in a PBV unit you can request a tenant-based voucher under 24 CFR 983.261.

Can I port my MSHDA voucher to another state?

Yes, after 12 months on your voucher. Federal rules at 24 CFR 982.353 give you the right to port to any PHA in the country with available funds. MSHDA sends documentation to the receiving PHA, which then either absorbs you or bills MSHDA back. Exceptions to the 12-month rule exist for domestic violence survivors and families moving to live with a caregiver.

What income limits apply to MSHDA Housing Choice Vouchers?

To qualify, a household has to be at or below 50 percent of Area Median Income for its county. By statute, at least 75 percent of new vouchers go to households at or below 30 percent of AMI. HUD publishes updated income limits each April. In 2025, the 50 percent limit for a family of four was roughly $38,550 in Lansing and $43,650 in metro Detroit.

What happens if my MSHDA inspection fails?

A failed HQS inspection gives the landlord a repair deadline: 24 hours for life-threatening hazards like no heat in winter or a gas leak, typically 30 days for standard deficiencies. The lease can't begin and HAP payments can't start until the unit passes. A second failed inspection can send the tenant looking for a different unit. Walk the unit against the HQS checklist before you schedule.

Does MSHDA have preferences for veterans or people experiencing homelessness?

Yes. MSHDA gives waitlist preference to households experiencing homelessness, households displaced by disaster or government action, and domestic violence survivors under VAWA. Veterans may qualify through HUD-VASH, a separate HUD-VA partnership with dedicated veteran vouchers, run in Michigan by VA medical centers working with local PHAs.

How does MSHDA's Low-Income Housing Tax Credit program relate to renting affordable housing?

LIHTC is a separate program from vouchers. MSHDA allocates federal tax credits to developers who build or rehab affordable housing. Tenants in LIHTC properties pay reduced rents set at 50 to 60 percent of AMI, no voucher required. Michigan has more than 100,000 LIHTC units. These can beat waiting years for a voucher. Search HUD's affordable housing locator or contact MSHDA for LIHTC property lists.

What tenant rights apply if MSHDA wants to terminate my voucher?

You have the right to an informal hearing before termination under 24 CFR 982.555. Request it in writing inside the deadline stated in your termination notice, usually 10 to 30 days. Miss that deadline and your appeal rights nearly always end. At the hearing you can present evidence, bring a witness, and dispute MSHDA's findings. A housing counselor or legal aid attorney can help you prepare.

Is there a MSHDA program for homeownership using a Section 8 voucher?

Yes. HUD's Homeownership Voucher program (24 CFR 982.625) lets qualifying voucher holders put their subsidy toward a mortgage instead of rent. MSHDA runs this option. Requirements include first-time buyer status, minimum income thresholds (elderly and disabled households excepted), employment, and a HUD-approved homebuyer education course. Not all PHAs participate, so confirm with MSHDA directly.

How does rent reasonableness work when a landlord wants more than the payment standard?

MSHDA compares your requested rent to similar unassisted units in the same area through a rent comparability analysis required by 24 CFR 982.507. If your rent tops comparable market rents, MSHDA won't approve it, regardless of the payment standard. A tenant can pay above the payment standard but not above comparable market rent. Landlords can't inflate prices just because a government agency is involved.

Sources

1. Michigan Legislature, Public Act 346 of 1966 (State Housing Development Authority Act): MSHDA was created as a state public body corporate under Public Act 346 of 1966
2. U.S. Code of Federal Regulations, 24 CFR Part 982 (HCV Program): Federal rules governing Housing Choice Vouchers including eligibility, payment standards, portability, HAP contracts, rent reasonableness, inspection standards, and hearing rights
3. HUD, Picture of Subsidized Households: Michigan has over 38,000 vouchers in use and approximately 57 local PHAs in addition to MSHDA
4. HUD, FY 2025 Income Limits Documentation System: 2025 50% AMI limit for a family of four: approximately $38,550 in Lansing MSA and $43,650 in Detroit MSA
5. MSHDA, Rental Assistance Program Overview: MSHDA has publicly cited waits of three to seven years for some voucher programs
6. HUD, VAWA Housing Protections (24 CFR Part 5, Subpart L): VAWA prohibits termination of voucher solely due to domestic violence and grants emergency transfer rights
7. HUD, FY 2025 Fair Market Rents: FY 2025 two-bedroom FMRs for Michigan metro areas including Detroit ($1,183), Grand Rapids ($1,105), Lansing ($1,027), Ann Arbor ($1,537), Marquette ($771), Traverse City ($1,088)
8. HUD, Fair Housing Act (42 U.S.C. 3604): Federal Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, disability, or familial status
9. Michigan Department of Civil Rights, Elliott-Larsen Civil Rights Act: Michigan's Elliott-Larsen Civil Rights Act includes source of income as a protected class, prohibiting landlords from refusing voucher holders
10. MSHDA, Low-Income Housing Tax Credit Program: Michigan has over 100,000 LIHTC units according to MSHDA program data
11. MSHDA, Homeowner Assistance Fund (HAF): MSHDA administered Michigan's Homeowner Assistance Fund funded by the American Rescue Plan Act, active through 2026
12. MSHDA, Official Website: MSHDA headquarters at 735 E. Michigan Avenue, Lansing, MI 48912; official contact and program information
13. HUD, PHA Contact Information and Housing Counseling Agency Locator: HUD's PHA locator and housing counseling agency locator allow searches by ZIP code and state