Are Section 8 Rentals a Good Strategy?

[Charles Horning]

Section 8 is a federal program that provides rental assistance to low-income families, elderly individuals, and individuals with disabilities. Landlords who participate in the Section 8 program receive guaranteed rental payments from the government, which can provide a reliable stream of income. 

Does anyone here have experience with Section 8 Rentals? Would you recommend? Why or why not...

Thanks for the help!

[David Dunkelberg]

I personally don't have any experience, but BP episode 748 (I believe) provided some great insight on them. 

[Patrick Drury]

@Charles Horning
I own a few in Columbus and would recommend it. They pay the highest rents in C locations which is the best route if you are looking for cash flow. Section 8 is a government organization so they can be difficult to work with. Since the employees are paid probably close to minimum wage there is no incentivization for them to be jumping up and down to get back to you ASAP. That's the main reason a lot of people avoid them and they change things sometimes at the drop of a hat without telling anyone like the forms required for intake. With all the said if you have patience it's 100% worth it. 

[Tanner Sherman]

I would agree with Patrick, we just got one of our properties on the program it was a better rental rate than the traditional renters would pay, and the inspector was extremely easy to work with. We had to install a couple CO detectors, fix a GFCI outlet and cover some exposed wires. She came back to reinspect the same day, it cost us nothing and now we have a great tenant moving in above market rate.