I am pending closure on a triplex but just learned my neighbors are remodeling to rent out to Section 8. I think I could probably rent at slightly higher than Section 8 market pricing, but do you think my property value / appreciation in the future? Anyone experience this?
All markets are local. In my market, Las Vegas, 4plex. Normal market rent is $715 monthly. For Section 8, I get rents at $775.
In general, I notice I can get higher for Section 8 than market. I think it is because the voucher/award tenant has is free money and often find hard to find apartment willing to take section 8, thus accepting higher rents than market.
Any idea on market value on home if neighboring Section 8 housing?
Market value is determined by what buyer is willing to pay. That said, it is generally accepted that if an area tends to have renters who are Section 8, the area tends to be C/D type neighborhoods. These neighborhoods tend to below market value values compared to A/B type neighborhoods.
For extreme example, Beverly Hills is A type neighborhood that would not likely have any Section 8 tenants due to high rents or just plain high price for any renters. Watts/South Central LA would have many Section 8 tenants due to low price and low rents.
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