Subsidized housing units are rationed among eligible households, so coverage varies substantially by type of household. This paper shows that coveraqe is best for households from 10 to 30 percent of median income. Coverage is particularly qood for large one parent households, and almost as good for small one parent households. Coverage of blacks is particularly good; coverage of whites and hispanics is less so. However, the most serious finding is that at lower incomes, under 10 percent of median income, coverage is very poor. There appear to be households at this income level who cannot deal with our society, and thus provide a classic economic justification for in-kind transfer programs, but who have not been successfully served by HUD's in-kind programs.

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