Section 8 Experts Please Help!
My property would rent out for a standard long term rate of $2300-2500 a month. I called the Houston Housing Authority and they said my property would get approved for up to $4313 as a section 8 long term rental. After hearing that I definitely got excited and started counting chickens before they hatched, as 1800-2000 extra dollars a month would super charge my cash flow. The website says that the section 8 tenants generally pay 30% of their income. Does this mean there is no downside to listing it for the maximum price of $4313 per month since the tenant would likely be paying the same amount no matter where they chose to live? Are there any benefits to listing it for lower? When it says they generally pay 30% of their income, is that just more of an average, meaning listing it for lower would significantly decrease days on market? I don't want my property to be on the market for a crazy amount of time but I don't want to leave money on the table. Any advice would be immensely appreciated! Thanks in advance.
Whoever you spoke to on the phone mislead you. The Houston Housing Authority does NOT pay more than fair market rent. In fact, they usually pay less if the property is in an expensive area.
30% is an average. Some tenants pay more, some pay less. How much HHA pays will depend on a few factors like income, number of children, etc.
Attend one of their online information sessions. The instructor will go over the program and answer questions at the end. You can find the schedule on their website.