How will Trump and the GOP affect Section 8

Question

Is there any risk with the current administration on housing welfare.

I have a rental unit that is profiting from section 8 as it pays higher in a poorer neighborhood.  It was a good deal, so this unit can still profit if it needs to go with local market prices.

Just curious if I should continue this strategy with section 8 and maybe I should be more conservative with my margins for future investments.

What's everybody's view or understanding of how the GOP and Trump could affect section 8?

Thanks

Account Closed · Answer

I'm with Account Closed- whatever changes are proposed in any agency in DC, it may be a long time before they're ever implemented and if they are ever to be implemented it could be under a new admin that ends up not bringing it about. D.C. bureaucracy...

Account Closed · Answer

I'm with Account Closed- whatever changes are proposed in any agency in DC, it may be a long time before they're ever implemented and if they are ever to be implemented it could be under a new admin that ends up not bringing it about. D.C. bureaucracy...

Account Closed · Answer

Under the current environment, there is so much other stuff going on that I think Section 8 won't even be addressed for a few years, Could be wrong tho'. I'd have an alternative plan in place, but I don't think you'll need it right away. California would fight the changes.  Ken

Patti Robertson · Answer

I agree wits Account Closed that cuts are not likely to affect current SEC 8 landlords and tenants much.  In 2013 after sequestration, every. HUD budget was cut by 8%. (Pretty sure that was the numbe, but don't quite me on it. ;)) Housing Authorities could choose how they applied their reductions.  Some chose to increase the bedroom to people ratio to two people per bedroom no matter who they were or what their sex.  Other reduced the rent caps.  Others got really strict about enforcing program requirements and booted rule offenders.  In areas where the bedroom sizes decreased it benefited landlords somewhat, because tenants in properties were grandfathered until they moved.  So someone who had the adult voucher holder, a 14 year old boy and a 12 year old girl, would have had a three bedroom voucher. In 2013, many HAs would have reduced this family to a 2 bedroom voucher.  The result was that tenants stayed put even more than usual so they could stay in the units with the extra bedroom.  In my area all of our HAs are back to the usual guidelines of paying market rents, giving the voucher holder their own bedroom, and separating the sexes. Chances are if we had a budget cut again we would see the same thing happen. Most of the impact wold transfer to landlords entering the program for the first time and to tenants who were forced to move for some reason.

Account Closed · Answer

I think there is too much hysteria surrounding the power of Trump. We tend to forget that the President is powerless without the consent of Congress. We have already seen that support is soft in some areas in his own party. We will see some changes during the Trump administration but they will be neither as sweeping or dramatic as is hoped for or feared.

Tuan Tran · Answer

Thanks everyone for your feedback.  I wasn't too alarmed with the new administration but just wanted to get other input on this especially those that are more seasoned than me.