In California, to qualify for Section 8 housing your household income has to be 80% less than the area median to qualify as Low-Income, less than 50% of the area median to be very low-income, and less than 30% of the area median to be extremely low-income.
Section 8 and Subsidized Housing are 2 separate things. The Section 8 program is where you pay your part of the rent and the state pays the balance directly to your landlord. Your Sec 8 status can be cancelled at any time. Cheating by both tenants and landlords is rampant. Landlords are totally responsible for the cost of repairs and property destruction.
Subsidized Housing is actually owned by the state, in full or in part, and is managed by state-funded agencies. Subsidized Housing costs the state more than it earns, but it does make millions of tax dollars available to the state - money meant for contractors, utility companies, cable providers, etc.
Calif has tried to replace Sec 8 with a rent voucher program that would give the state access to more millions of tax dollars, but that hadn't gotten off the ground last I heard. But they very rarely approve a new property for Sec 8, and they've terminated a lot of Sec 8 people. Phasing it out, apparently.