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Section 8 Homeownership Program (SHAPE)

Memphis, Tennessee

Last verified
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Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$300,000

Highest purchase price the program allows

Repayment

Grant

Not repaid

What is Section 8 Homeownership Program (SHAPE)?

Section 8 Homeownership Program (SHAPE) is a grant for homebuyers in Memphis, Tennessee.

  • Memphis HCD/MHA Section 8 Homeownership Option program (per HUD 24 CFR 982.625). Converts existing Section 8 Housing Choice Voucher from rent subsidy to monthly homeownership-cost subsidy paid directly to lender/escrow. 15-year subsidy term (30 years for elderly/disabled). Restricted to current MHA HCV families. Memphis HCD layers DPA closing-cost assistance.
  • SHAPE (Section 8 Homeownership Program) converts a Memphis Housing Authority Section 8 Housing Choice Voucher (HCV) from monthly rent subsidy to monthly homeownership-payment subsidy. Under HUD's Section 8 Homeownership Option (24 CFR 982.625), eligible HCV families may apply their voucher to mortgage principal, interest, taxes, insurance (PITI), utilities, maintenance, and major repairs for up to 15 years (or 30 years for elderly/disabled families). The voucher is paid directly to the lender or escrow agent each month. Memphis HCD layers DPA assistance with SHAPE participation - this record represents the voucher subsidy itself plus DPA layering. Voucher value varies by family size, income, payment standard, and cost of homeownership.
  • effectively replaces the family's HCV rent subsidy with a homeownership-cost subsidy.
  • Funding comes from Federal, HCV, and Section 8.

Do you have to pay it back?

Section 8 Homeownership Program (SHAPE) is structured as a grant, so it is not repaid.

  • Repayment is triggered by Voucher subsidy ends at the earliest of: (a) 15 years (30 for elderly/disabled), (b) family ceases to occupy as primary residence, (c) family moves out, (d) family income exceeds eligibility, (e) family fails to meet ongoing program obligations. No repayment of voucher subsidy as long as family remains compliant - it is a federal subsidy, not a loan.
  • The assistance is recorded in 1st Lien (voucher does not create a lien) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Section 8 Homeownership Program (SHAPE) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Per HUD 24 CFR 982.625; standard FTHB exceptions for displaced homemakers / single parents.
  • The home is occupied as a primary residence
  • On credit: 620 typical minimum FICO; lender overlays apply.
  • A completed homebuyer education course, through Pre-purchase homebuyer counseling required by HUD (24 CFR 982.626). Memphis HCD-approved counseling agencies; MHA Family Self-Sufficiency program.
  • Residency: Property within Memphis city limits; primary residence; family must continue to occupy.
  • Citizenship or immigration status: Per HUD HCV eligibility - U.S. citizen or qualifying non-citizen.
  • Applicant must be a CURRENT Memphis Housing Authority Section 8 Housing Choice Voucher (HCV) family in good standing. Family must meet HUD's Section 8 Homeownership eligibility requirements (24 CFR 982.625): minimum income (greater of federal minimum wage x 2,000 or per local PHA policy - higher for non-disabled families), continuous full-time employment of 1+ year (waived for elderly/disabled), first-time homebuyer (no homeownership in past 3 years), have not previously defaulted on a mortgage under this option, complete pre-purchase counseling. Household income at or below 80% AMI Memphis MSA. Property in Memphis city limits; primary residence; max purchase $300,000. Property must pass HUD HQS / independent professional inspection ordered/paid by family. Subsidy term 15 years (30-year mortgage assumed) or unlimited for elderly/disabled families.

The program excludes

  • Purchases above the $300,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Section 8 Homeownership Program (SHAPE) limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% AMI Memphis MSA ($45,400-$75,200). Minimum income test per 24 CFR 982.625.
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Section 8 Homeownership Program (SHAPE) caps the purchase price at $300,000.

  • Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home on permanent foundation, cooperative. 1-unit only.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Section 8 Homeownership Program (SHAPE) names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and buyers with disabilities among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Section 8 Homeownership Program (SHAPE) serves buyers purchasing in Memphis, Tennessee.

How do you apply?

Applications for Section 8 Homeownership Program (SHAPE) go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Pre-purchase homebuyer counseling required by HUD (24 CFR 982.626). Memphis HCD-approved counseling agencies; MHA Family Self-Sufficiency program..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Apply through Memphis Housing Authority Section 8 Homeownership coordinator; family must already hold an HCV., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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