BiggerPockets

I think that the ramifications are that you will be receiving less rent.

Eddie,

It's sounds like you are going to have to make a choice, whether to accept it for another year or not accept it and tell them to go fly a kite. What kind of rent are we talking about, how much? I currently do not have any Sec 8.

I hope that is not the case. I have avoided section 8, but am working on rehabbing 2 places now and was planning on doing section 8. I EVEN PAID FOR SCREENS!! For all of the extra hoops that they make you jump through the extra money is barley worth it.

I think it really depends on the jurisdiction and the relative health of it to carry on the program. I own some stuff in Memphis and they are reducing by 15% there as well effective 8/1. That leaves you with the choice to either take less rent, or kick out the tenants. I tend to think that with the extra money HUD will have to spend on relocations, inspections, etc. from the move outs, that they will end up spending more that they think they are going to save by reducing pay outs.

Thanks Eddie I really appreciate you taking one for the team.

Please do correct me, but as homowner you can choose to accept or reject any lease holder. The rent is up to them to make not matter what it is. If section 8 only pays xxx amount then the tenant must pay the rest.

This should not affect your rent rates, only what section 8 will pay.

Rich is right. The HAP contract specifically prohibits charging the tenant more than the maximum authorized rent. Doing so can get you in hot water since you're not only violating your HAP contract, but you're also cheating a poor unfortunate (lazy) government assistance (handout) recipient!

The tenant may be required to pay part of the rent authorized by Section 8, but that has nothing to do with charging more than they are authorized.

You'll continue your rant about those damn socialists ( for the next 8 years,.,,) and quietly (Or not so quietly) you'll continue collecting that socialist section 8 rent. After all hypocrisy would never get between you and your dollar, right?

Yes, I am certainly taking Section 8 tenants because the government is essentially forcing me to do that. They are a part of the market and if I want to efficiently fill up my units, I've got to take Section 8. I am also allowing the government to "weatherize" my rentals. I'm being forced to pay the money, and I want as much back as possible.

Think of it this way, I am not in favor of our socialist government and the way that are wasting money. I am very unhappy every six months when I write a 5-figure property tax check!!! However, even though I'm not in favor of the taxes they are taking from me, I still pay it. Yes, that too may be hypocritical, but I'm still paying my taxes.

Mike

In all fairness to Eddie though - if this is on his out of state properties, it shouldn't hurt him too bad. From what I've read about his out of state buying, he regularly meets/exceeds the 2% rule in his purchasing so I'm guessing he'll absorb these cuts and be fine.