Disaster Aid and Rental Assistance: Examining Federal Housing Support for Homeowners and Renters After Disasters

This study examines the distribution of U.S. federal disaster assistance for homeowners and renters, as well as non-disaster rental assistance following disasters. We show that the Individual and Household Program (IHP) and Small Business Administration (SBA) disaster loans, while available to both groups, provide substantially more assistance to homeowners than renters. Using ZIP code-level longitudinal data, we find that allocations of IHP aid and SBA loans for homeowners are negatively associated with per capita income and housing values, and positively correlated with Black population share, suggesting that more homeowner aid reaches economically vulnerable and racially diverse communities. The distribution of IHP aid and SBA loans for renters largely mirrors this pattern. By contrast, the allocation of National Flood Insurance Program (NFIP) payouts and Hazard Mitigation Grant Program (HMGP) disproportionately favor wealthier localities and also provide significantly less support to ZIP codes with higher Black and Hispanic populations. We also find that non-disaster federal rental programs also increase the allocation of rental units to localities affected by flooding and storms. The Low-Income Housing Tax Credit (LIHTC) program experiences short-term growth in new unit development, and HUD-administered rental subsidies expand more gradually but persistently, particularly after hurricanes. Both LIHTC and HUD programs are concentrated in low-income, renter-heavy, and minority communities, reflecting effective targeting of socially vulnerable populations. These findings suggest that existing rental assistance programs can play a buffering role in disaster recovery, especially when disaster aid tends to underserve renters.