Why I am a Fan of Section 8 Housing Program - Am I crazy?

Question

When I started out investing all those years ago I didn't understand all the details around Section 8 Housing.  Like most newbie's I thought low income and maybe hard to manage.  Well after 15 Years of investing and 1,000's of tenants I can tell you with out a doubt that Section 8 Housing as a Program is a good program for tenants and landlords.

Wow I think I just heard a landlord scream at me through the internet.  Let me explain my position first and then I can take the beatings as opinions will be all over the board I am sure.

First I will say that over the years I have had a couple of nightmare tenants who were in the program but it is rare.  Truth be told most of my nightmare tenants I have had were not Section 8 Tenants but instead tenants that qualified and then life happens and craziness ensues.

The positives far out way the negatives in my opinion.  In fact the one negative I hear the most about I actual believe is a HUGE Positive.  I hear landlords complain all the time about their "Yearly" inspections and the little things they find.  I say great find all the little problems you can now so I can fix before they are big problems later!!!

I frankly see Section 8 Inspections as a second and unbiased set of eye's looking at my properties and I welcome every inspection and the report they produce.

In the end Section 8 Program is not for all properties in all areas but if you invest where I do there is nothing wrong with having a Section 8 tenant in your properties in my opinion.

What say you?

Z

Linda Weygant · Answer

@Michael Zuber, @Alan G., @Jonathan Taylor Smith - I have the same experience as y'all.  My troublesome tenants are an overall reflection of population.  Same percentage of tenants "go bad" in Section 8 properties vs regular.

No issues with inspections - I bring a basic tool kit and can fix most stuff as soon as the inspector finds it.  If I do so before they are done with the inspection, they don't even write it down.  They mention, I fix it and we all move on.  For anything I can't fix on the spot, the inspector will allow me to take a picture of the fix and send it in within a week and then they pass me.

Terry Lao · Answer

Reading this post, there is one reason that I don't see, and it is an indirect reason in favor of section 8.

Being an investor, taxpayer, law abiding citizen, etc .................I finally get some satisfaction in getting the government to pay me instead of me paying the government all the time.

Terry

Terry Lao · Answer

In my opinion, Section 8 is better than regular tenants in the right neighborhood. For example, if for neighborhoods in class type C/D, then it would be perfect due to ability to get higher rents and tenants usually staying longer.

If in class type A/B, then normally their rent voucher is not enough to cover or even cover a good portion.

Also, having knowledge that on the first of the month, rent will be direct deposited to the bank, makes section 8 like gold. Having to chase tenants around and getting all kinds of excuses, gets old fast.

Terry

Jonathan Taylor Smith · Answer

Exactly one half of my tenants are Section 8 and exactly one half of the 2 tenants that I've come near to evicting were S8. I don't have any preference for or against Section 8 but all things considered my S8 tenants are more stable than the non... They stay longer, the majority if not all of the rent is guaranteed to be on time each month and I don't consider the annual inspection to be any hardship or government control over my business. I inspect quarterly anyway so they hardly ever find anything.

I'm also fine for other landlords not to accept Section 8 so that I can ensure a steady stream of potential tenants to choose from allowing me to pick only the best.

Alexander Felice · Answer

about half my units are section 8 and I love it.

Not crazy at all.

Alan G. · Answer

Michael,

Very well said. I've found that most of the people who speak negatively about the section 8 program are speaking "speculatively" from what they " have heard" and not from their own experiences. Although I understand that some housing authorities are harder to deal with than others, overall, I find they are just looking to make sure the homes are safe. Those yearly inspections that some landlords hate, I tend to like for the exact same reason you stated.

Approx. 30% of my tenants have vouchers and I would gladly take more.

Thomas S. · Answer

"if you invest where I do"

That is the key, It depends 100% on local government management. Do not rate based on S8 or not S8, it is unique to each district. If the handlers are incompetent or the program has limited guidelines S8 could be the worst possible tenant pool. In well managed areas where the handlers have the authority and desire to keep their wards to a strict regime they are C/D class tenants no different than any others.

In my area I would remain vacant or get out of the business if welfare tenants where my only option for C/D class properties. This is secondary to the fact that I do not allow government to interfere with my business any more than is absolutely necessary. In my opinion S8 is as close to allowing government to manage your business as you can get...Absolutely not for me.

Bottom line is you screen as normal and accept or reject welfare applicants based on how they are managed. There is no standard.

Why I am a Fan of Section 8 Housing Program - Am I crazy?

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