Comparing the Effects of Housing Vouchers and Low-Income Housing Tax Credits on Neighborhood Integration and School Quality

This study compares the effects of housing vouchers and low-income housing tax credits (LIHTC) on neighborhood integration and school quality in six metropolitan areas. The study shows that program performance varies according to government policy choices and the local market environment. New York and Boston are the only two areas where vouchers clearly do better than LIHTC, a result of LIHTC's targeting of distressed neighborhoods and the dispersion of vouchers. In Atlanta and Miami, LIHTC's emphasis on new construction has brought more assisted families to middle-income suburban neighborhoods. By contrast, the persistent racial segregation in Cleveland and a regionwide housing shortage in San Jose have diminished the economic and educational prospects for both programs.