Although federal Section 8 vouchers are transferable to anywhere in the United States, many evacuees have had transfers denied or delayed because of a loophole in federal law allowing local agencies to reject moves to "higher-rent" areas such as New Orleans, The (New Orleans) Times-Picayune reported Sunday.

The Housing Authority of New Orleans can't afford to pay for any incoming vouchers, said HUD spokeswoman Donna White.

As a result, many out-of-town housing agencies have invoked the "higher rent" exception to refuse New Orleans transfers, the newspaper said.

Laura Tuggle, head of housing law for New Orleans Legal Assistance, called the idea of portable vouchers "a myth."

"This is a huge national issue -- it's not just us," Tuggle said.

Section 8's low-income recipients typically pay a third of household income toward rent. Some evacuees rejected for transfers are considering a return to New Orleans without assistance, but they fear the city's high rents.

"People believe they can't go home," said Gina Martin, whose move back to New Orleans was blocked by the Houston Housing Authority office.