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Economic Impacts of Subsidized Housing Location

Michael P. Johnson and Arthur P. Hurter

IPR working papers from Institute for Policy Resarch at Northwestern University

Abstract: A popular scheme for providing affordable housing involves the use of rental vouchers given directly to families who choose their own market rate rental units. In this paper we present a methodology for calculating localized economic benefits and costs to various groups affected by a hypothetical move from inner-city public housing to suburban Section 8 rental housing. Such a move might occur as part of a program similar to the Gautreaux Assisted Housing Program. Benefits and costs derived from this move can then be used in an optimization model to compare impacts of alternative allocations of families to certain areas in which to search for rental housing. We apply this benefit/cost methodology to metropolitan Chicago data and report computational results.

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