Why is there a need for food stamps? Food is not expensive. Isn't a rent the largest expense? So wouldn't it make more sense to give a Rent Stamps instead? I am sure people need free rent, not a free food.
Indeed, it would likely be better for all concerned if TANF (and Section 8 housing vouchers, i.e. “rent stamps”) were simply cash benefits.
But like with the tax code, the government (with no small influence from the voters) prefers to keep some measure of control—no candy bars! extra benefits at farmers markets! Though as you might imagine that control is illusory given most spending is fungible.
Not being cash, housing vouchers are also difficult or impossible to apply towards a roomshare situation. As mentioned in the article, this is a common solution for students to afford housing, by splitting the rent with multiple roommates. A voucher could easily cover the cost of a bedroom in a large shared house, but will never allow you to secure a studio or 1-bed on your own.
The gov subsidizing rentee's housing payments to existing landlords en masse is the landlords' wet dreams. Not only do they get to capture the income of the rentee's, but also their tax dollars! The fundamental bargaining position will remain unchanged!
Before you say "that's why the gov should build the housing", it's important to remember that centrally planned things are generally worse than market planned ones, it's a bitter lesson but history shows it time and time again. Instead of rentees choosing how to spend their money the gov, who only cares in an indirect way, will be making that decision for them. Inevitably someone in this compulsory taxation-gov-built-housing loop will realize their bargaining position and create insurmountable corruption. What would a rentee do, swap local govs to pay taxes to in their city?
If you want your gov to help your situation, use the gov to allow people to build more housing. If that's not an option, you gotta start new somewhere else.
