What is HUD?
The U.S. Department of Housing and Urban Development (HUD) is the federal agency responsible for housing policy, fair housing enforcement, and community development. HUD oversees the Federal Housing Administration (FHA), which insures home mortgages. Other HUD offices administer public housing and the Section 8 voucher program and fund a national network of HUD-approved housing counseling agencies.
Updated
Key facts
- HUD's budget funds rental assistance programs (Section 8 vouchers and public housing) for low-income households, alongside FHA mortgage insurance, fair housing enforcement, housing counseling and community development grants.
- HUD oversees the FHA, which had active insurance on 8.1 million single-family forward mortgages with more than $1.6 trillion in unpaid principal as of September 30, 2025. FHA delinquency was 13.64% in HUD's monthly report in August 2026.
- HUD's network of HUD-approved housing counseling agencies provides free foreclosure prevention counseling, while debt management and homebuyer education counseling may carry reasonable fees that must be waived for clients who can't afford them.
- The Office of Fair Housing and Equal Opportunity (FHEO) within HUD enforces the Fair Housing Act, investigating discrimination complaints across race, color, national origin, religion, sex, familial status, and disability.
- HUD administers the Community Development Block Grant (CDBG) program, which gives grants to state and local governments for housing rehabilitation, infrastructure, and services benefiting low-income communities.
Related data
- FHA Mortgage Delinquency Rate →13.64%, August 2026
- Delinquency Rate on Single-Family Residential Mortgages, All Commercial Banks →1.9%, Q2 2026
What Does HUD Do?
HUD's mission spans five major areas:
- FHA mortgage insurance: Through the Federal Housing Administration, HUD insures mortgages for borrowers who may not qualify for conventional financing — first-time buyers, lower-income households, and borrowers with lower credit scores. FHA enables 3.5% down payments and more flexible underwriting.
- Rental assistance: The Housing Choice Voucher Program (Section 8) and public housing together serve low-income households across the country. HUD also administers project-based rental assistance for privately owned affordable housing.
- Fair housing enforcement: HUD investigates complaints under the Fair Housing Act and coordinates with state and local fair housing agencies. It also proactively tests for discrimination in housing markets.
- Housing counseling: HUD funds and approves housing counseling agencies that provide free foreclosure prevention counseling as well as reverse mortgage counseling, homebuyer education, and financial literacy services, some of which may carry reasonable fees.
- Community development: Through CDBG, HOME, and other programs, HUD funds affordable housing construction, rehabilitation, infrastructure, and services in underserved communities.
How Does HUD Housing Counseling Work?
HUD-approved housing counseling is available to current and prospective homeowners and renters. Foreclosure prevention counseling is free, while other services may carry reasonable fees that must not create financial hardship for the client. Counselors can help with:
- Foreclosure prevention: Reviewing your financial situation, explaining loss mitigation options, communicating with your servicer, and helping prepare modification applications
- Pre-purchase counseling: Helping first-time buyers understand the mortgage process, compare loan products, and assess affordability
- Reverse mortgage counseling: Required by HUD before any reverse mortgage closing — ensures seniors understand the obligations and risks
- Rental counseling: Helping tenants understand their rights, resolve landlord disputes, and find affordable housing
To find a HUD-approved counselor: call 800-569-4287 or visit hud.gov/findacounselor. Counseling is available in multiple languages and by phone, video, or in person.
What Is HUD's Role in the American Distress Index?
HUD-related data flows into the ADI in several ways:
- FHA delinquency: HUD's monthly FHA Single-Family Loan Performance Trends report tracks FHA delinquency on its own. It was 13.64% in August 2026. The ADI tracks the aggregate single-family mortgage delinquency rate in its Delinquency domain; the FHA-specific rate is context for who is most distressed within that aggregate, not a separately scored input.
- Housing counseling: The American Default directory lists the HUD-approved counseling agencies on HUD's own list as free resources for distressed homeowners.
- Fair Market Rent: HUD's annual FMR determinations affect Section 8 voucher amounts and serve as a benchmark for housing affordability analysis.
State-by-state differences
HUD programs are federal but implemented through state and local housing finance agencies, Public Housing Authorities, and certified counseling agencies. Coverage and capacity vary significantly by jurisdiction.
| State | Key difference |
|---|---|
| New York | NYCHA is the largest PHA in the nation (177,000 units, 339,000 residents). New York also has one of the densest networks of HUD-approved counseling agencies. HUD Region II office in New York City. |
| California | CalHFA partners with HUD on multiple programs. California has the largest state allocation of CDBG funds and the most HUD-approved counseling agencies. HUD Region IX office in San Francisco. |
| Texas | Large geographic coverage challenges for counseling access. Multiple major PHAs (Houston, Dallas, San Antonio). HUD Region VI office in Fort Worth. |
| Florida | High FHA loan concentration means HUD oversight is particularly important. Significant fair housing enforcement activity. Multiple PHAs, including Miami-Dade (one of the largest). HUD Region IV office in Atlanta covers Florida. |
| Illinois | Chicago Housing Authority is one of the largest PHAs with a complex history of federal receivership and transformation. Strong network of HUD-approved counseling agencies in the Chicago metro area. |
Questions about HUD
How do I find a HUD-approved housing counselor?
Call 800-569-4287 (U.S. Department of Housing and Urban Development's counseling hotline) or visit hud.gov/findacounselor. Foreclosure prevention and homeless counseling are free from HUD-approved agencies, while other counseling may carry reasonable and customary fees that must not create financial hardship for the client. Be wary of any 'counselor' who charges fees — legitimate HUD-approved agencies cannot charge for foreclosure prevention counseling.
What is the difference between HUD and FHA?
FHA is a division within HUD. HUD is the broader federal agency responsible for all housing policy. FHA specifically insures mortgages, enabling lenders to offer loans with lower down payments and more flexible credit requirements. When people say 'FHA loan,' they mean a mortgage insured by the Federal Housing Administration within HUD.
Does HUD build housing?
HUD does not directly build housing. It funds construction through programs like HOME and CDBG, insures mortgages through FHA, and subsidizes rents through Section 8 and public housing. Actual construction, maintenance, and management are done by local housing authorities, private developers, and nonprofit housing organizations.
How do I file a fair housing complaint with HUD?
Call 1-800-669-9777 (HUD's Fair Housing complaint hotline) or file online at hud.gov/fairhousing. HUD investigates complaints of discrimination based on race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, and disability. Complaints must be filed within one year of the alleged discrimination.
What HUD resources are available if I'm facing foreclosure?
HUD offers free housing counseling (800-569-4287) and FHA loss mitigation programs (forbearance, loan modification, partial claim) through your servicer. Start with a counselor — they can assess your full situation and help you navigate all available options.
Related terms
- FHA LoanA mortgage insured by the Federal Housing Administration, with FHA-specific servicing and loss-mitigation rules.
- Section 8The federal Housing Choice Voucher Program — the largest U.S. rental assistance program, subsidizing housing costs for 2.3 million low-income households.
- Fair Housing ActA federal law that prohibits discrimination in housing based on protected characteristics.
- Fair Market RentThe HUD-determined amount needed to rent a standard-quality unit in a specific area — set at the 40th percentile of gross rents and used to calculate Section 8 voucher amounts.
- Homeowner Assistance FundA $9.96 billion federal program from the American Rescue Plan Act that helped pandemic-affected homeowners avoid foreclosure through state-run mortgage assistance. Closed to new aid after September 30, 2026.
- Loss MitigationA servicer's review of available alternatives to foreclosure, such as repayment, forbearance, modification, or a short sale.
- Consumer Financial Protection Bureau (CFPB)The federal agency that enforces consumer financial protection laws, handles complaints, and can fine mortgage servicers for illegal practices.
- ForeclosureThe legal process where a lender takes your home after you stop making mortgage payments. The process and timeline vary significantly by state.
Sources and method
- U.S. Department of Housing and Urban Development, at hud.gov
- HUD — Find a Housing Counselor, at hud.gov
- HUD — Office of Fair Housing and Equal Opportunity, at hud.gov
- FHA Single Family Portfolio — Neighborhood Watch, at entp.hud.gov
- FRED — Delinquency Rate on Single-Family Residential Mortgages (DRSFRMACBS), at fred.stlouisfed.org
- HUD — FHA Fiscal Year 2025 results (Annual Report to Congress on the MMI Fund), at hud.gov
- U.S. Department of Housing and Urban Development, at hud.gov
- U.S. Department of Housing and Urban Development, at hud.gov
- 24 CFR 214.313, Cornell Legal Information Institute, at law.cornell.edu
We write with assistance from AI tools. Figures come from the data and sources named on this page.