Rural America, A Place Everyone Can Call Home

When we talk about what it means to build a strong and prosperous community in rural America, we’re describing “rural livability.” It’s a simple phrase that can encompass so much, like access to healthcare, transportation options, walkable amenities, available and affordable housing. For some, connectivity to high speed internet, financial opportunity, and a?strong?sense of community are the most important.?For others it’s new roads and bridges, a new community health center or improved electric grids and water systems. But out of all these factors, the most personal aspect of livability is often the place where we all build our lives — our homes.

At?USDA Rural Development (RD), we?know?the?impact owning a home can make in a rural town. Since 1949, we’ve helped over?4.8 million rural?people?take the major step of becoming a homeowner, supporting them to?put down roots while contributing to their town’s livability and making America more prosperous. Grants, loans, and loan guarantees from USDA RD and its partners help make rural America?a place everyone can call home.?

While homeownership is a good fit for many, plenty of rural people engage with their community by renting a home.?Renting a single- or multi-family home allows for flexibility, an especially valuable benefit at many stages of a person’s life.?But?currently, over 40,000 tenants are rent overburdened, spending more than 30 percent of their incomes?on rent.?Rental assistance through USDA RD ?helps rural people realize those opportunities afforded by renting, freeing more income for families to build wealth or to invest in their communities.

This kind of?support?is critical, as rising housing costs aren’t just a factor in large cities. Rural communities across America?are facing?the same challenges.?In areas?with?an influx of new residents, housing costs can increase for those who don’t own homes, sometimes forcing relocation further from town, disrupting rural communities.?

When you own or rent?a home, you’re invested in and connected to where you live. Homeownership in particular is often?a consequential step towards building wealth and?bolstering?a community.?And while rural America is a place of promise and great opportunity, that opportunity has not been equitable.?So, it's notable that rural areas have a lower poverty rate than urban centers, and a higher home ownership rate[1] . Both bode well for the future of rural towns, but we can do better especially when it comes to racial disparities. The?gap in homeownership between White and Black Americans ?persists year over year, with about 30% fewer Black Americans owning homes.?Working directly with rural communities, USDA RD aims to close the homeownership gap among rural Black Americans and empower other communities who haven't been afforded the chance to own a home going back generations.?

?USDA’s?Single-Family?Housing Programs ?are?powerful tools?rural people can use to become homeowners solidly rooted in their town, sparking engagement in the community while contributing to its livability.?

Lower-income rural people may not be able to afford the down payment required for them to begin building wealth and security. Loans furnished by or guaranteed by USDA RD have low interest and are specifically designed for people in this position, allowing them to achieve the dream of homeownership, remaining in their hometown, aging in place, and enjoying a life of their choosing.?

Homes in a state of disrepair can lead to many different issues, some of which can become expensive very quickly if left unattended.?RD loans and grants for home repair ?help rural people to solve these problems head on without needing to wait to save up?before damage worsens.?

We?focus?exclusively?on rural?towns, with?a teams of?local team members across the country who understand matters within communities?to?help along the way. We also partner?with private lenders to offer?our?uniquely low interest rates?to even more rural people?in different forms. RD’s?offerings may be?a?great fit?for people who cannot find options through “traditional” lenders, opening opportunities for marginalized groups.?

In addition to loans, grants and loan guarantees, our commitment to making rural America a place for all people is stronger than ever with the American Rescue Plan. We will invest $39 million before September 2023 to help refinance direct loans under the Single-Family Housing Loan Program and Single-Family Housing Repair Loans & Grants., a critical tool for homeowners who are experiencing financial distress as a result of the pandemic.?

As?we look forward to a “new normal” of building our economy back better in 2022 and beyond, USDA RD is here to support rural people at any stage — whether that’s starting a new job, moving to a new town, or any other life change brought about by the pandemic or other impactful event.?Through Single Family, Multi-Family, Rental Assistance, Home Repair and more programs, USDA RD is here to?improve rural livability?in the United States.?

In the next parts of our Rural Livability series, we’ll showcase investments?in?critical?community facilities and getting more rural people connected to sustainable and stable energy.?Follow USDA RD on?LinkedIn ,?Twitter , and?YouTube ?to stay connected.?

[1] According to the 2016–2020 American Community Survey (ACS) 5-year estimates , 64.4% of occupied housing units are owner occupied in the US. In urban areas, homeownership rate is 60.1% while in rural areas, it is 82%.