This, 100%. Then a new generation grows up in said slum with its attendant effects on their development and the cycle worsens
The problem in the US is that there is no gray area for subsidized housing. As soon as you hit some magic number, you lose all of your benefits. The people who game the system to stay under this number are not stupid, but acting rationally because they know their new job may not stick around. They would rather have housing security than take a chance at losing everything and living in the street until their tax return shows that they are poor again.
[1] https://www.newstatesman.com/spotlight/2019/09/housing-basic...
Maybe some % of people just aren't going to break the cycle. I'd still rather they aren't homeless and causing decay on the streets.