MTR or Section 8?

[Esi Okpetu]

Hi everyone, I am wrapping up the renovation of a 2 bed, 1.5 bath in Fort Worth, TX. It was meant to be a flip project but the investment was more than expected. I am considering keeping and using the property for MTR or section 8. Any tips on which is a better option?

[Esi Okpetu]

Quote from @Bonnie Low:

MTR and Section 8 are very different niches with little in common so it's very difficult to provide advice on your question. For example:

- Section 8 properties are usually in rougher areas. These do not make good sites for MTRs.

- Section 8 properties will be unfurnished. MTRs are always furnished. 

- MTR guests expect a hospitality experience, much like STR. This is not the case with LTR or Section 8 tenants.

- While self-managing either type of property is possible, if you hire out property management you'll pay a higher percentage for a skilled MTR manager than for someone to manage your Section 8 property.

- While MTRs can be any size property, the bedroom/bathroom count is really important, especially with larger properties. With Section 8, pricing is based on bedroom count only. It's not unusual to see 3/1 and 4/1 Section 8 properties but that single bathroom would not do well as an MTR.

Overall, I'd say location and the shape of the property is going to be your key driver and the factors that will make or break you in the MTR space so very carefully evaluate both before you make your decision. 

 Thanks! This was very helpful and provided some guidance on what to consider. I appreciate your response.