Updated over 5 years ago on . Most recent reply
Low Income Housing Program with USDA Rural Development
Does anyone have any experience with buying or owning apartment buildings that are in the USDA Rural Development/Low Income Housing Program?
There are a few for sale near me but I'm having a hard time finding out how the program works. The listing realtor won't reply to my emails. I should give him a call.
According to the listing, the loan has to be assumed by the buyer and the property has to stay in the program until the agreement is up. It looks like rent is capped at 115% of the area's median income. It's also capped at 30% of each tenants income.
I'm sure there is a lot of red tape and hoops to jump through with it being in this program. I guess the main thing I'd like to know is does the program subsidize or set the rent similar to section 8? If a tenant is very low income and the rent isn't subsidized there could be instances where the rent I'd receive could be too low.
If anyone has any experience with this program I'd really appreciate any insights and advice you may have.
Thanks!