Which statement best describes the effect of means-tested subsidies on public housing as stated?

Which statement best describes the effect of means-tested subsidies on public housing as stated?

• A. More successful families are often forced to leave their housing.
• B. More successful families are given preference through lower rents.
• C. Means-testing has no impact on family turnover.
• D. Public housing becomes private housing for higher-income families.

Answer: (A)

Means-tested subsidies tailor housing assistance to households with lower incomes, and in public housing the rent a family pays is often tied to their income while subsidies cover the rest. When a family’s earnings rise, their rent increases or the subsidy can phase out, making the housing less affordable or no longer eligible. As a result, more financially successful families are pushed out, leading to turnover in public housing. This captures the stated effect: those who become more well-off end up leaving to maintain affordability elsewhere.

Means-tested subsidies tailor housing assistance to households with lower incomes, and in public housing the rent a family pays is often tied to their income while subsidies cover the rest. When a family’s earnings rise, their rent increases or the subsidy can phase out, making the housing less affordable or no longer eligible. As a result, more financially successful families are pushed out, leading to turnover in public housing. This captures the stated effect: those who become more well-off end up leaving to maintain affordability elsewhere.