Essential Information About Section 8 Houses for Rent

Essential Information About Section 8 Houses for Rent

You've probably already heard about Section 8 houses for rent. Tenant-based rental assistance programs like Section 8 make up more than $30 billion of the projected 2022 federal housing budget. You might not be clear on what Section 8 does, though.

Why would an owner want their property to be part of Section 8 housing? What advantages does it offer investors and managers?

Keep reading and we'll cover the basics.

Just the Facts

The most obvious question is, "What is Section 8?" Section 8 comprises a small set of housing assistance programs set up by the Department of Housing and Urban Development. It gives low-income, disabled, and elderly families vouchers to use toward housing.

To receive a voucher, the applicant submits a Section 8 application to their local agency. The agency reviews the application and disburses funds how it sees fit. In Phoenix, Arizona, for instance, the agency operates a lottery that selects candidates to be put on the waitlist.

The prospective tenant is responsible for finding a home, or in rare circumstances, putting the voucher toward the purchase of a home. They aren't limited to subsidized housing, either, so long as the ones operating the rental are willing to rent under Section 8.

Running Section 8 Houses for Rent

If you have housing to rent, you may wonder, "Why should I turn these into Section 8 rentals?" Becoming a Section 8 landlord has some big advantages.

Section 8 housing comes with a reasonable guarantee of income. Most of the funds come from the agency, rather than the tenant, and the tenant will be motivated to keep the dwelling.

Demand outstrips supply, to the point where Phoenix's housing agency offers bonuses for new Section 8 contracts. Most housing agencies need more qualifying housing than they have. When voucher recipients look for "Section 8 housing near me," they'll find you.

Tenants also come pre-screened by the housing agency. Basic criminal background checks and income verification will already be done. That's not to say you shouldn't perform your own background check, though.

The Right Properties for Section 8

Not all properties make great candidates for housing voucher programs. If you're thinking about offering a dwelling under the program, you should keep a few things in mind.

Location plays a big role. Low- and middle-income areas make better candidates for Section 8 homes, as there is a limit to how much the agency will cover. These tenants cannot afford to make up too much of a difference.

While homes should generally adhere to Fair Housing Laws already, you should be sure you're fully compliant before renting. You will need to meet standards for upkeep and other practices.

Get Started Soon

Have some potential Section 8 houses for rent? Looking to take the next steps in making sure they're fully compliant and well-administered?

Great. We'd be happy to help you operate your investment properties. Drop us a line today.

We have experience handling every element of the renting process. Our property management services can market your properties, handle maintenance, collect rent, and perform other daily functions. You do what you do best, and we'll do what we do best.

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