A successful USDA program that has supported more than 533,000 affordable rental homes in rural America is being phased out

By — Bryan Y. An, The Conversation Bryan Y. An, The Conversation Leave your feedback Share Copy URL Email Facebook Twitter LinkedIn Pinterest Tumblr Share on Facebook Share on Twitter A successful USDA program that has supported more than 533,000 affordable rental homes in rural America is being phased out Economy Mar 15, 2026 3:34 PM EDT This article originally appeared on The Conversation The high cost of renting and buying homes in U.S. cities is no secret. But this affordability problem isn't limited to urban regions – it affects rural areas as well . Rural areas, home to about 25% of Americans , benefit from federally supported rental housing programs – particularly a U.S. Department of Agriculture program to provide affordable homes for low-income residents. The USDA's Section 515 program is the primary way that the U.S. government finances affordable rental homes in rural communities. Since its inception in 1963, the program has supported the construction of over 533,000 apartments, townhouses and other small, multifamily rental homes. READ MORE: Trump signs executive orders aimed at home affordability ahead of midterms The program offers below-market-rate loans to private and nonprofit developers who build and manage residential housing for low-income residents in small towns and rural counties. The terms of the deal between property owners and the government obliges these landlords to keep rents affordable for their occupants for decades, generally restricting rent to about 30% of tenants' income . Last new loans were in 2011 People who live in Section 515 housing typically pay around US$325 per month . That's much less than rural market-rate rents, which typically run $800-$1,100 per month for modest homes. Because the USDA stopped issuing new Section 515 loans in 2011 , this arrangement is phasing out now as existing loans mature. Loans for about 90% of all remaining Section 515 homes will mature by 2045, according to the Housing Assistance Council, a nat...