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Mehran K.
  • Investor
  • Wichita Falls, TX
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"What If" Section 8 Were No More

Mehran K.
  • Investor
  • Wichita Falls, TX
Posted Nov 21 2013, 16:27

Hey there community!

I'm closing on a property tomorrow and I'll be inheriting a Section 8 tenant. I always like to think about possible "What If" scenarios and it's got me thinking. I ponder, how would it affect us as landlords/investors (even those that do not accept section 8 tenants) if the entire Section 8 program were shut down, for good.

  • I'm sure the numbers vary in every market, but I'm pretty sure there is a hefty amount of tenants in the renter pool being subsidized by the program. Do you think it would have a major impact on general market rents across the country?
  • Investors that are heavily saturated with section 8 tenants would be having a hard time making payments and keeping their property in good condition. With decreases in general market rent, over-leveraged investors could be in a bind as well. Would this impact property values if there are increased foreclosures?

There are probably tons of other things that would happen as a result of Section 8 ceasing to exist but these ones just popped in my mind. If this ever did happen, it probably wouldn't be a sudden thing, but you never know!

I'm just wondering what other people think, thanks in advance!

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