An Empirical Analysis of Tenant Selection Under Federal Rent Supplement Programs: A First Step

The purpose of this study is to consider the question of whether characteristics of applicants for federally subsidized housing can be used in predicting whether one is accepted or rejected by management as a tenant. Using probit analysis, a statistical model was developed for use in assisting management in objectively screening applicants. Factors found significant in determining the probability of acceptance or rejection were credit ratings, character references, length of time employed, and student status. The percent of rent subsidized by government and sex of household head had little effect on applicant acceptance. Although a meaningful model for estimating the probability of eviction could not be developed, low eviction rates resulting from the tenant selection model suggest that it may serve as a reasonable proxy.