What is the difference between section 8 housing and a tax credit project?

Okay, section 8 is a program, not a type of housing. It is actually bifurcated into two separate programs: public housing, and a voucher program. Public housing units are apartments or houses that are owned by a public Housing Authority or similar agency. Like the voucher program, your rent is adjusted according to your income. Under the voucher program, the rental unit is owned by a private individual or company, a landlord. That landlord will accept your voucher as part of your rent, of which you must pay the difference. The voucher is a guarantee by the federal government that it, through the housing authority mentioned, will pay its portion of your rent on your behalf.

A tax credit project is a privately owned apartment complex that was financed through federal guaranteed mortgage loans from the USDA. In exchange for these low interest loans, the property owner must furnish apartments for those who are on low income, either through some programs of the USDA, the section 8 voucher program, or any other program administered by the property owner. In addition to the low-interest loans, the owner will also be entitled to tax credits on the property.