BiggerPockets

Section 8 can be good and bad, depending on the area (state, county, city), your strategy, and the investment vehicle.

The good: Guaranteed rent checks from the housing authority, direct deposit to your account, more prospective tenants to choose from.

The bad: Getting set up with section 8 can be a long process with paperwork and inspections. It can be a huge hassle at times, but once you are set up, the process is much smoother. Some areas such as Los Angeles, have very poor landlord favorable laws and unfavorable housing authority inspections. Some of our sec 8 areas have ongoing quarterly inspections of the tenant and the condition of the apartment while other areas, you may not ever get any help with that.

I am not a section 8 expert and have not had a ton of experience, but some.

Mark makes a good point and I failed to mention this which is of upmost importance. Regardless of section 8 tenant or not, you MUST do the same and proper screening of the tenants EVERY time. Just because they come from sec. 8 does not mean you do not use the same screening methods and background checks. In fact, you should be even more critical of the sec. 8 screening.

Thank you guys for yours reply. Right now I confused a little bit. I lived in Detroit for while and now I live in Los Angeles. I will spent less money if I buy in Detroit and rent to section 8 people. And I will spent more money if I buy in Los Angeles and rent to section 8 people. Which place is better for investment. Let say if I sell these properties after 5 years, where I can make more money?
Thank you

Mario,
the answer to your question could be quite complex and really depends on your individual strategy and abilities. Buying in CA, you are going to pay very low cap rates, too low for my tastes. Detroit can give you better cap rates and better cash flow, but the future growth looks bleek. The demographics in Detroit are very bad, loss of poulation, job loss, etc.
Picking the right area to invest is key and again, depends on YOUR strategies.

Good luck.