Suburban municipal characteristics that attract housing choice voucher households: A test of the Tiebout hypothesis

The Housing Choice Voucher program (HCV) is a federally supported demand-side housing subsidy. According to the HCV program, eligible households are encouraged to secure housing in favorable neighborhoods. However, affordable housing options are becoming more limited in central city neighborhoods. Consequently, HCV households are considering suburban communities as a source for affordable rental housing. It is necessary to learn if the supply of affordable rental housing located in suburban communities that are complete with other sought-after amenities can accommodate the increased demand.;This dissertation examines HCV mobility within a Tiebout hypothesis framework to assess the choices made by HCV households in selecting a suburban community in which to live. The Tiebout hypothesis contends that consumers interested in relocating to a new municipality will research particular characteristics of available municipalities and will eventually choose a location that best meets their needs thereby voting with their feet. To answer associated research questions through a test of the Tiebout hypothesis, this study statistically and descriptively compares census tracts within nine counties located in the Northern Illinois Chicago Metropolitan area that have absorbed Chicago Housing Authority HCV households between 2000 and 2007. The study involves an assessment of the mobility choices of HCV households based upon traditional Tiebout factors (public services, school performance) and socio-demographic factors related to Tiebout sorting (racial composition, residential density and income).;Results of the analyses suggest that HCV households sort into low-income neighborhoods with low-performing schools, high Black populations, and high vacancy rates. Explanations for the phenomena include landlord bias and prejudice that result in HCV households not being offered rental housing opportunities and suburban municipal zoning laws that directly increase the cost of rental housing.;The study results support policy modifications to the HCV program and the HOPE VI program's use of HCV. Additional incentives in the form of bonus payments, streamlined eviction processes and property damage recovery payments can be offered to landlords to encourage program participation. To address bias, landlords, residents and municipal decision makers are encouraged to learn more about the program, provide feedback to program officials on areas in which the program can be improved; and familiarize themselves with the cultural nuances of the people that comprise the HCV market. This may result in willingness on the part of all actors to increase HCV program acceptance. Finally, suburban municipalities that are on the receiving end of HCV relocation that stems from demolition activity as part of HOPE VI or the Plan for Transformation should be provided with funding to cover the cost associated with the provision of supportive services that would normally be provided by the central city public housing authority.