Thousands of people are expected to bombard Plymouth City Hall next week to sign up for a subsidized housing waiting list.

They will be competing for just 300 spots. That ratio indicates an increasing demand and shrinking supply for affordable housing in the metro area, housing advocates said.

"You have to income-qualify to even get an application," said Eric Hauge, a tenant organizer for HOME Line, a nonprofit advocate for tenants. "So that shows the need."

The waiting list is for the federally subsidized Section 8 program and is meant for people living on low incomes. To apply, a two-person household cannot make more than $31,400. Plymouth will fill its waiting list of 300 by lottery from the applications of those deemed eligible.

Local housing and redevelopment authorities, known as HRAs, then distribute the Section 8 vouchers as they become available -- when the federal government decides to fund more vouchers or when people who were receiving Section 8 rent subsidies move out of the program.

The waiting lists for Section 8 open infrequently.

This is the first time in almost four years that Plymouth has opened its list. It's giving applications only to those who show up next Tuesday and Wednesday.

When the Metropolitan Council's HRA opened its waiting list last year, more than 25,000 applications were requested for just 1,000 spots.

"Based on what happened there and based on the phone calls we've gotten, we expect the demand will be greater than in 2004," when the Plymouth HRA last opened the list, said Denise Whalen, Section 8 manager for Plymouth.

Currently, there are only 20 people on Plymouth's waiting list. But that doesn't mean that the other 280 found housing or got vouchers. Plymouth also removes people from the list if they cannot find housing in the allotted time, or if they change their address without notification or don't find housing because of bad credit or a poor rental history, Whalen said.

Someone can spend years on a waiting list and then finally be offered a voucher, only to discover that it's tough to find housing that will accept the voucher.

According to a 2007 Home Line survey of Section 8 vouchers and housing, too few rental units -- 27.3 percent of 65,752 units surveyed in three counties -- were available and eligible through the program.

"We're seeing thousands of people line up to get a voucher on one hand," Hauge said. "Meanwhile, there is a steady mark of long-term subsidized housing being lost."

Here are some frequently asked questions about Section 8 housing, with answers provided by the Plymouth HRA:

Who's eligible for Section 8 vouchers?

An applicant's household income cannot exceed $27,500 for one person, $31,400 for two, $35,350 for three, $39,250 for four or $42,400 for five.

How many people will be selected for the waiting list?

Plymouth's Housing and Redevelopment Authority will conduct a lottery for the 300 spots on its waiting list. Priority will be given to applicants in particularly tough situations -- such as those who are homeless or are living in substandard housing.

If someone gets a voucher, does he or she have to live in Plymouth?

Yes, at least for the first year.

How does Section 8 housing work?

Participants pay rent based on their income. Then the HRA, using funds from the U.S. Department of Housing and Urban Development, or HUD, pays the difference.

Jenna Ross • 612-673-7168