With waiting lists filled to the brim in many cities, it`s unlikely that you`ll have a hard time renting out your property under Section 8. This is especially beneficial in cities where rents are vacant for long periods of time and condominiums and homes are unaffordable for many families and individuals. Before using your properties as section 8 Rentals, it may be advisable to weigh the pros and cons. Once a family has received their voucher under section 8, it is up to them to find a suitable apartment or house that accepts tenants under section 8. Local PHAs usually have listings of these properties, while sites like GoSection8 make it easy to find rentals by zip code. The housing voucher usually covers 70% of the standard rent for this area, with the family being responsible for paying the remaining 30%. If you are a real estate investor, especially in a large metropolitan area, you may have considered opening your rentals to Section 8 tenants. This federal program supports people with very low incomes by subsidizing a portion of their monthly rent. Since the demand for article 8 vouchers is so high in many areas, the waiting list can be very long; some families wait many years for help. Local PHAs close their waiting list if it is exaggerated – for example, in Los Angeles, the waiting list was closed in 2017 and will remain closed from 2020.

One of the biggest benefits of renting to tenants in section 8 is that (70%) of your rent is paid on time each month. In the past, if you`ve had trouble collecting rent from tenants who haven`t been as accommodating, you`ll appreciate this benefit. In general, a family`s income must be less than the median income of 50% for their area to qualify for section 8, but this may vary by city and state. Only you, along with your property manager, can decide if the pros outweigh the disadvantages of your particular situation. If you decide to open your property to Section 8 tenants, it`s good to know that you`re providing safe accommodation to families who need it. The Housing and Community Development Act 1974 introduced the Housing Choice Voucher Programme, which was an amendment to section 8 of the Housing Act 1937. This program supports low-income tenants by offering coupons that pay about 70% of their monthly rent and utilities. Section 8 housing is overseen by the U.S. Department of Housing and Urban Development (HUD) and managed by public housing agencies (PHAs) located in all 50 states. PHAs determine section 8 eligibility for their territory based on income and family size. Whether you`re new to the world of real estate investing or an old truck driver, at some point you`ll likely consider opening your property to Section 8 tenants.

Before making the decision, it is advisable to arm yourself with the knowledge of the good and the bad when renting in that particular niche. The local ASP determines the rent of your home based on the market, which is the maximum you can charge. In addition, the rent cannot exceed 40% of a potential tenant`s income. As a result, section 8 landlords often charge their tenant less than a non-section 8 tenant. As a landlord, there are pros and cons to accepting housing vouchers. So before you make the decision to enter this niche market and provide housing to people who really need it, it`s wise to do extensive research on what to expect. Some studies have shown a link between Section 8 housing and higher crime rates. Whether this is true or not, acceptance can result in a lower valuation of your property. Before you can accept tenants, your property must pass a thorough inspection by hud staff. If your property is deemed inadequate, you will have 30 days to make the necessary corrections before being re-examined. After the initial inspection, your property will be subject to repeated inspections, usually on an annual basis.

While you have the right to evict Section 8 tenants who don`t pay their share of the rent, damage property, or create problems for other tenants, you must follow HUD procedures to evict them. Be warned: HUD tends to be more restrictive than the local eviction process. The government will deposit your share of the rental money into your bank account on the same day each month. .