**Section 8 pays rent. Medicaid pays for health care and certain housing-related services (like deposits, utilities, and tenancy support)—**not ongoing rent—except in narrow state waiver pilots that can cover short-term rent for up to six months. You can (and often should) use both programs together. eCFR

Bottom line: Use Section 8 for monthly rent; look to Medicaid for the services that get and keep you housed (and, in a few states, very short-term rent under strict caps). Medicaid+1

What each program actually pays for (and why that matters)

Program	What it can pay	What it cannot pay	When it’s most useful
Section 8 (Housing Choice Voucher)	Ongoing rent to a private landlord (tenant typically pays ~30% of adjusted income).	Health care, services, deposits (unless local partners add funds).	Any time you need long-term help with rent in the private market. eCFR
Medicaid (core + HCBS authorities)	Health care; housing-related services like security deposit, application/inspection fees, utility setup/arrears (limits), tenancy supports, transition/moving costs; home mods; case management.	Routine monthly rent/room & board in the community (long-standing prohibition).	When you need services to find/keep housing, leave an institution, or stabilize health at home. Medicaid+2Medicaid+2
Medicaid §1115 HRSN (state-specific)	Short-term rent/room & board (strict criteria, global cap up to 6 months per rolling 12 months), plus the supports above.	Anything beyond caps/frequency; broader ongoing rent.	During transitions (e.g., post-hospital, pre-procedure housing) where brief rent support prevents harm. Medicaid
Section 811 PRA (HUD)	Project-based rental assistance for extremely low-income people with disabilities; states must partner with Medicaid for referrals/services.	Health care; services (Medicaid/others handle that).	For supportive housing when a state has 811 PRA units and a Medicaid pipeline. HUD Exchange MACPAC
Money Follows the Person (MFP)	Transition coordination and allowable one-time costs to leave institutions for the community (works with housing partners).	Ongoing rent by itself.	When discharging from a nursing facility/IMD and you need deposits, setup, and services. Medicaid

Source: CMS/HUD program rules, last checked: September 6, 2025. Medicaid+2Medicaid+2 HUD Exchange

Bottom line: Think “rent vs. services.” Vouchers cover rent; Medicaid funds the supports (and sometimes short-term rent under a state §1115 HRSN demo).

Can you use Section 8 and Medicaid at the same time?

Yes. There’s no rule that blocks you from receiving both. In fact, HUD’s Section 811 PRA requires state housing–Medicaid partnerships precisely to align rent help with services. MACPAC

Will Medicaid affect your Section 8 rent?

Two parts matter:

What counts as income under HUD rules. HUD’s regulation excludes:
- Medical reimbursements, and
- Payments made by a State Medicaid agency to a family to enable a person with a disability to live in the assisted unit (for example, some self-directed caregiver payments).
  These amounts do not increase your HUD “annual income,” so they won’t raise your Section 8 rent. eCFR
Medical/disability deductions. If your household is “elderly or disabled,” HUD lets you deduct unreimbursed medical/attendant-care costs above a threshold from income. Under current rules, the threshold is generally 10% of annual income, with hardship relief that can temporarily use 5% then 7.5% before phasing to 10%. eCFR
Note: Only expenses you pay out-of-pocket count—not amounts paid by insurance or Medicaid. HUD Exchange

Source: HUD eCFR §§5.609, 5.611; HUD Exchange guidance; last checked: September 6, 2025. eCFR+1 HUD Exchange

Bottom line: Medicaid reimbursements and certain caregiver payments don’t boost your Section 8 rent. Keep receipts for unreimbursed medical costs that might lower it. eCFR+1

Will Section 8 affect Medicaid eligibility?

For most adults under MAGI rules, Medicaid counts tax-based income (AGI + a few add-ins). Housing vouchers aren’t taxable income, and state Medicaid manuals typically list Section 8 subsidies as excluded. Always check your state, but vouchers generally don’t count toward MAGI Medicaid income. Beyond the Basics Pennsylvania Welfare Services

Bottom line: A housing voucher usually does not jeopardize Medicaid eligibility because it’s not counted as MAGI income. Confirm with your state’s Medicaid agency. Pennsylvania Welfare Services

What Medicaid can fund for housing (the practical list)

Medicaid’s long-standing rule is no routine room & board in the community—but lots of housing-related supports are permitted and encouraged:

Pre-tenancy & tenancy sustaining services (housing search, applications, landlord liaison, lease education, eviction prevention). Medicaid
One-time transition costs: security deposits; application/inspection fees; utility activation; movers; essential furnishings (authority varies: 1915(i), 1915(k), 1915(c), managed care ILOS). MACPAC
Home/environmental modifications or remediations needed for health (e.g., ramps, grab bars; sometimes air filtration, medically necessary cooling). Medicaid
Utility assistance (separate from rent) — in §1115 HRSN, up to 6 months in a demonstration period, if approved. Medicaid
Short-term rent/room & board in limited §1115 HRSN demos:
- Global cap: combined up to 6 months with room & board during a rolling 12-month period, plus a separate 6-month limit on rent-only interventions per demonstration period; tightly defined transitions/criteria. Medicaid

Source: CMS 2015 housing bulletin; CMS 2024 HRSN guidance; MACPAC. Last checked: September 6, 2025. Medicaid+1 MACPAC

Bottom line: Expect services, deposits, utility help, and home mods from Medicaid—not a permanent rent check. In some states, §1115 HRSN adds brief, capped rent help. Medicaid

How Section 8 calculates your rent (and how medical costs fit)

Your Total Tenant Payment (TTP) is the highest of: 30% of adjusted monthly income; 10% of gross monthly income; welfare rent (if any); or minimum rent. In HCV, your share usually ends up near 30% of adjusted income. eCFR
At initial lease if the chosen unit’s gross rent exceeds the payment standard, the family share can’t exceed 40% of adjusted income. HUD
Adjusted income means annual income (after HUD’s inclusions/exclusions) minus deductions (dependents, elderly/disabled family deduction, unreimbursed medical/attendant-care expenses above the threshold). eCFR

Table — What counts as income: HUD vs Medicaid (quick comparison)

Item	HUD (Section 8) income?	Medicaid MAGI income?
Wages/SSI/SSDI (cash)	Yes (with standard rules/exclusions for minors, etc.) eCFR	Wages yes; SSI/SSDI vary: SSI generally not counted in MAGI; Social Security benefits (including non-taxable portion) are added for MAGI. Check state rules. Medicaid
Medicaid reimbursements for medical costs	No (excluded). eCFR	Not income.
State Medicaid payments to family caregivers (to keep a disabled person at home)	Excluded from HUD income if paid by a Medicaid/State agency to enable a disabled member to live in the assisted unit. eCFR	Depends on tax status; some in-home waiver payments may be non-taxable; MAGI follows tax treatment. Check your state/IRS. hcopub.dhs.state.mn.us
Housing voucher/subsidy	N/A (it’s the benefit itself)	Generally not MAGI income (not taxable; many state manuals exclude Section 8). Pennsylvania Welfare Services

Source: HUD eCFR §§5.609, 5.611; CMS MAGI training/manuals. Last checked: September 6, 2025. eCFR+1 Medicaid Pennsylvania Welfare Services

Bottom line: Keep receipts for out-of-pocket medical costs; don’t report Medicaid reimbursements as HUD income; and confirm state MAGI quirks with your Medicaid agency.

Step-by-step: How to coordinate benefits (checklist)

Start with housing: Apply/maintain your Section 8 (HCV) or project-based waitlist(s). Keep your PHA contact updated.
Ask your Medicaid plan/agency about housing supports: Specifically mention 1915(i)/(k)/(c) services, managed care ILOS, and whether your state has an §1115 HRSN approval (ask about deposits, utilities, moving, tenancy services, and any short-term rent). Medicaid+1
If leaving a facility, request Money Follows the Person (MFP): Tell your discharge planner and Medicaid case manager you want MFP transition support. Medicaid
If your state has Section 811 PRA: Ask the housing/Medicaid liaison whether you qualify and how referrals happen. HUD Exchange
Document medical expenses: Track unreimbursed bills for the HUD medical deduction (threshold per §5.611). eCFR
Confirm caregiver payment treatment: If you receive Medicaid caregiver pay, show your PHA the HUD exclusion (24 CFR 5.609(b)(19)). eCFR
Run the numbers before you lease: Ask your PHA for a rent estimate (payment standard, utility allowance) and confirm your share ≤ 40% at initial lease if the rent is over the standard. HUD
Use Medicaid for one-time costs: Request deposits, utility setup, and moving help through your Medicaid case manager or MCO if your state covers them. MACPAC
Ask about HRSN short-term rent (if homeless or post-hospital): Where available, your care team must verify clinical + social risk and an allowable transition; watch the 6-month caps. Medicaid
Keep everything in writing: Save approvals, invoices, and receipts. Re-verify income/expenses at each PHA annual review.

Bottom line: Name the authority (1915/1115/MFP/811 PRA) when you ask for help. It signals you know the pathway and speeds referrals. Medicaid+2Medicaid+2 HUD Exchange

Real-world scenarios (how it plays out)

1) Discharging from a nursing facility to your own apartment

Voucher covers monthly rent; MFP plus Medicaid transition services pay security deposit, utility setup, movers, and tenancy support. Short-term rent may be possible in §1115 HRSN states within caps. Medicaid+1 MACPAC
Bottom line: Tell your discharge planner early that you want MFP plus housing supports.

2) You’re a parent paid by Medicaid to care for your child with disabilities

Those Medicaid caregiver payments are excluded from HUD income, so your Section 8 rent doesn’t go up because of them. Keep documentation for your PHA. eCFR
Bottom line: Point your PHA to 24 CFR 5.609(b)(19) if there’s confusion.

3) You’re homeless with severe health needs

In an §1115 HRSN state, your Medicaid plan might fund pre-tenancy navigation, application fees, deposits, utilities, and time-limited rent (e.g., recuperative care, post-discharge, or short-term rental assistance) up to allowed months while you secure a long-term rent subsidy like Section 8 or 811 PRA. Medicaid
Bottom line: Ask your clinic social worker to screen you for HRSN eligibility and connect to the PHA.

Where to get help (fast)

Local Public Housing Agency (PHA): Application status, payment standards, medical deduction documentation.
Your Medicaid plan/case manager: 1915/1115/HRSN/MFP; deposits, utilities, tenancy services. Medicaid+2Medicaid+2
ADRCs/Centers for Independent Living: Cross-system navigation for disability services and housing.
State housing department: Whether Section 811 PRA exists and how referrals work. HUD Exchange

Important legal/benefits disclaimer

This guide is general information, not legal, tax, or benefits advice. Rules vary by state and change often. Discuss your situation with your PHA, Medicaid agency/plan, and a qualified advocate.

High-authority source notes (spot checks)

Medicaid housing supports & no routine rent: CMS bulletins (2015; 2024 HRSN). Source: CMS, last checked Sept 6, 2025. Medicaid+1
HUD rent formula & deductions: eCFR §§5.628, 5.611, 5.609. Source: eCFR/GovInfo, last checked Sept 6, 2025. eCFR+2eCFR+2
MFP and 811 PRA coordination: Medicaid.gov & HUD/MACPAC. Source: Medicaid.gov, HUD, MACPAC, last checked Sept 6, 2025. Medicaid HUD Exchange MACPAC

Key takeaways

You can use Section 8 and Medicaid together—they’re designed to complement each other.
Medicaid funds services (and deposits/utilities); Section 8 funds rent. Short-term rent is possible only in certain §1115 HRSN states with strict 6-month caps. Medicaid
HUD excludes Medicaid caregiver payments and medical reimbursements from income, which helps keep your rent share lower. eCFR
Unreimbursed medical/attendant-care costs can reduce your adjusted income (thresholds apply). eCFR
Name the pathway (MFP, 811 PRA, 1915/1115) when asking for help; it speeds approvals.

Next steps

Call your PHA to confirm your voucher status and how to document medical deductions.
Call your Medicaid plan/case manager and ask, “Do we have §1115 HRSN housing supports or 1915 benefits for deposits/utilities/tenancy?”
If you’re in or leaving a facility, request Money Follows the Person.
Keep a folder of receipts for unreimbursed medical expenses and approvals.
Loop in a local housing/benefits advocate if you hit roadblocks.

FAQs

Q: Does Medicaid pay for rent if I have Section 8?

Generally no. Medicaid covers housing-related services such as deposits, utilities, tenancy supports and, in some states, short-term rent under an 1115 HRSN waiver that is typically capped at six months. Section 8 covers ongoing rent.

Q: Can I have both Medicaid and Section 8 at the same time?

Yes. Many states coordinate the programs so people can use Medicaid-funded services with a Section 8 voucher for rent.

Q: Will Medicaid caregiver pay increase my Section 8 rent?

No. Certain Medicaid payments to family caregivers are excluded from HUD income calculations, so they do not raise your Section 8 rent share.

Q: Which housing costs can Medicaid cover?

Pre-tenancy and tenancy supports, application and inspection fees, security deposits, utility setup or limited arrears, moving costs, and home modifications. In some states, short-term rent may be covered under an 1115 HRSN waiver subject to strict caps.

Q: How does Section 8 figure my rent share?

Typically the highest of 30% of adjusted monthly income or 10% of gross monthly income (with welfare/minimum rent rules). At initial lease-up, a 40% cap applies if the rent exceeds the payment standard.

Q: Do unreimbursed medical bills lower my Section 8 rent?

If your household is elderly or disabled, unreimbursed medical or attendant-care expenses above HUD’s threshold can reduce adjusted income, which may lower your rent share.

Q: Does a housing voucher count as income for Medicaid?

Generally no. Medicaid MAGI follows tax rules and housing vouchers are not taxable income, so they are usually excluded.

Q: What is Money Follows the Person (MFP)?

A Medicaid program that helps people transition from institutions to community settings by funding services and one-time housing-related costs.

Does Medicaid pay for rent if I have Section 8?
Generally no. Medicaid can fund housing-related services (deposits, utilities, tenancy supports) and, in some states, short-term rent under §1115 HRSN (usually capped at 6 months). Section 8 covers ongoing rent. Medicaid+1

Can I have both Medicaid and Section 8 at the same time?
Yes. Many states actively coordinate them, and 811 PRA requires Medicaid-housing partnerships. MACPAC

Will Medicaid caregiver pay increase my Section 8 rent?
No, HUD excludes certain Medicaid caregiver payments from income (24 CFR 5.609(b)(19)). Bring documentation to your PHA. eCFR

Which housing costs can Medicaid cover?
Typically security deposit, application/inspection fees, utility setup/arrears (limits), moving, tenancy supports, and home mods; not routine rent—except time-limited rent in some §1115 states. MACPAC Medicaid

How does Section 8 figure my rent share?
Usually the highest of 30% of adjusted income or 10% of gross income (plus welfare/minimum rent rules). Caps apply at initial leasing when rent exceeds the payment standard. eCFR HUD

Do my unreimbursed medical bills lower my Section 8 rent?
If your household is elderly/disabled, yes—costs above the threshold reduce adjusted income (see §5.611). eCFR

Does a housing voucher count as income for Medicaid?
Generally no. MAGI tracks taxable income; vouchers aren’t taxable and many states explicitly exclude Section 8 subsidies. Check your state’s policy. Beyond the Basics Pennsylvania Welfare Services

What is Money Follows the Person (MFP)?
A Medicaid program that helps people leave institutions with services and one-time housing costs to re-establish in the community. Medicaid

Section 8 Housing + Medicaid: How They Work Together