The Walsall North MP joined the Ministry of Housing as a parliamentary private secretary in 2018, and recently served as an assistant whip.
A former Walsall councillor, he was previously chair of the WHG housing association and was also an assistant chief executive at YMCA Birmingham.
First elected as an MP in 2017, Mr Hughes was appointed to his first junior ministerial role after Kelly Tolhurst MP resigned for personal reasons.
Mr Hughes said: "Having previously worked as the assistant chief executive of a charity helping young homeless people, I'm delighted to continue working to tackle homelessness in my new role as a minister.
"I also look forward to working closely with West Midlands Mayor Andy Street, who has made this issue a priority since he was first elected."
Mr Hughes's responsibilities include homelessness, rough sleeping and supported housing.
He will also oversee the Government's social housing white paper,a new charter setting out the actions ministers will take to ensure residents in social housing live in good quality homes and have access to redress.
In a letter to Boris Johnson announcing her decision to step down, Ms Tolhurst said: “Following on from some devastating news for my family, after much consideration and deep reflection, it is with the great sadness that I am writing to notify you of my intention to step down from my role as the Parliamentary Under Secretary of State in the Ministry of Housing, Communities, and Local Government, so that I am able to care for, and spend some precious time with my family in the coming months.
“It has been an immense privilege to serve in your Government under three different departments — in my current role as Rough Sleeping & Housing Minister, and previously as the Small Business Minister in the Department for Business, Energy, and Industrial Strategy, and as Maritime, Aviation, and Security Minister in the Department for Transport.”