You&#x27;re right that subsidy tends to increase prices, but the rate by which that happens isn&#x27;t fixed the way you describe. Vouchers result in an average increase in buying power. Over the whole population of renters (those eligible and those ineligible), this would be a marginal increase. And yes, it&#x27;s likely rents would achieve a new equilibrium consistent with that aggregate increase in buying power.<p>But, on the other hand, the voucher programs would increase the buying power of the absolute neediest people at a greater marginal rate than for the population as a whole. The end result is that poor people&#x27;s ability to participate in the housing market still improves, in that their ability to meet rent becomes more commensurate with people more affluent than them.