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For the first 30 years of public housing, MINIMUM income requirements kept it a decent place for low-wage workers to live, and kept out welfare recipients.
In the 1960s, welfare recipients got angry (about many facets of welfare policy) and organized, getting Congress in 1969 to eliminate the minimum income requirements.
This, of course, allowed welfare recipients to trickle in as vacancies appeared, until a tipping point was reached where the working class abandoned public housing and the welfare class took over.
So welfare recipients get to pay 30% of their cash income for housing, while millions of working Americans are paying much more, often half their income, for unsubsidized housing.
What if subsidized housing gave preference to workers paying more than 30% of income for housing? Why incentivize non-work over work? If welfare recipients wanted subsidized housing all they would have to do is work.