I suggest that the Obama administration review an existing proposal from Barbara Sard at the Center for Budget and Policy Priorities for a Federal Renters Tax Credit as part of tax reform:
Overview: Congress would authorize states to allocate federal tax credits to make housing affordable for low-income renters.
• Families assisted with credits generally would pay no more than 30 percent of their income for rent and property owners (or sometimes banks that lend to them) would receive a tax credit in exchange.
• If capped at $5 billion the proposal could:
– help 1.2 million families afford housing, – reduce rents by an average of $400
– lift four of five of the poorest families it assists out of deep poverty
To review the full proposal: http://www.cbpp.org/pdf/CBPP_RentersCreditWebinar.pdf