I have a real estate mentor and he told me this, is it true?

Question

I have a real estate mentor and we are looking at properties together. He told me that Sec 8 pays $1,511 for a three bedroom home. This applies, for the most part, regardless of where the home is at. He says he has over 50 homes around the country and they all pay 1,511 generally speaking as long as they are 3 bedrooms.

He uses data from HUD to back up his statement: https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/2023summary.odn

Is this true across the country?

He uses data from HUD to back up his statement: https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/2023summary.odn

Is this true across the country?

Bill B. · Answer

Find a new “mentor” before he/she asks you for $1,511.

Wayne Brooks · Answer

@Peter Board No, it is local market dependent.

Nathan Gesner · Answer

Not only is your mentor wrong, they also aren't providing the entire picture.

In some markets, Section 8 will pay more than you can get from a standard rental. In my market, Section 8 will only pay $1,300 for a 3bed/1bath home whereas I can rent it on the private market for $1,600. Section 8 doesn't pay enough for me to justify accepting it.

Jonathan R McLaughlin · Answer

Please tell me you aren’t paying this guy…

Owen Dublin · Answer

Potential rental income is location specific.

Bob S. · Answer

No, for this " mentor " to give a blanket statement is irresponsible and well just plan ignorant. PLEASE tell us all you did not pay this clown.

Use common sense. If you buy a property for 300k, you get 1500, vs paying 100k, same 1500, lose this clown number.

All the best

Steffen Cushing · Answer

agree with the rest of the comments, this is definitely market dependent.

Erin Church · Answer

Sorry to hear that your mentor is a bit lacking in their knowledge on Section 8. If you're interested in Section 8, look up the town/county HUD housing. You can often find pricing for that area. There are also different rules in different areas. In Richmond County, GA, tenants cannot pay over the Section 8 pricing (so, using @Daniel McDonald's example, you couldn't charge $1150 for a 3/1). However, in Aiken County, SC, tenants can pay over the allowable amount if you are charging more than Section 8 pays.

Joe Villeneuve · Answer

Wrong. Market dependent.

Daniel McDonald · Answer

I was shopping in Augusta, GA and the section 8 3/1 payment is 1120. Definitely market-dependent.

I have a real estate mentor and he told me this, is it true?

I have a real estate mentor and he told me this, is it true?

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