The Federal Government's Role in Financing Rural Housing
Report
CBO examines rural housing demographics, federal credit programs and other programs that support rural communities, and the total budgetary effects of those federal credit programs.
Households in rural communities may face barriers to purchasing homes or finding suitable rental properties. The federal government—primarily through the Rural Housing Service (RHS) of the Department of Agriculture—offers loan guarantees, direct loans, payment assistance, and other forms of financial support to eligible households in those areas. In this report, the Congressional Budget Office examines rural housing demographics, federal credit programs and other programs that support those communities, and the total budgetary effects of those federal credit programs.
Characteristics of Rural Households. In general, counties with a higher proportion of residents living in rural communities have lower median household income and higher median rates of homeownership.
Sources of Support for Rural Housing. RHS fully supports rural households—that is, 100 percent of its program activities assist rural households. Rural households also may receive federal assistance through the Federal Housing Administration, the Department of Veterans Affairs, and Fannie Mae and Freddie Mac; 10 to 20 percent of those programs' activities support rural housing.
Amount of Federal Credit Assistance. CBO estimates that in 2026, the federal government will provide $293 billion in credit assistance to rural households through loans and loan guarantees. CBO calculated the lifetime budgetary effects of that assistance using two methods: one based on specifications in the Federal Credit Reform Act of 1990 (FCRA) and one based on a measure of fair value (that is, accounting for market risk). Using those two methods, CBO estimates that the lifetime budgetary effects of the assistance will be a savings of $3.4 billion or a cost of $3.2 billion, respectively.
