Can I section 8 trailers?

Question

Looking to buy a trailer (that’s not in a park, no HOA), and rent it to section 8. Is that possible or smart to do so?

I’m located on the Illinois side of St. Louis.

Michael J. · Answer

Hey Tyler,This sounds like an interesting opportunity! The short answer is, yes, you can absolutely buy a trailer on private land and rent it out to Section 8 tenants.

A few things to keep in mind:

• Section 8 requires the property to pass an inspection based on HUD’s Housing Quality Standards (basically making sure it’s safe and well-maintained).
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• The rent you charge has to align with Fair Market Rents (FMRs) in your area, so it’s good to check what similar properties are renting for.
• 
• You’ll still be responsible for maintaining the property, but the upside is that a chunk of the rent is guaranteed by the government, which can provide steady income.

Check with the local housing authority about any specifics for your area—every jurisdiction does things a little differently.

This could be a great niche if you can find a good deal on the land and make sure your expenses (like maintenance, insurance, and occasional vacancies) are covered by the rental income. I’d love to hear what properties you’re considering and how this pans out for you!

Let me know if you have other questions—I’m happy to help brainstorm!

Michael

Tyler Gilpin · Answer

Thanks for the info! I need to look at joining that group. In this particular scenario, both mobile homes are on their own lot that’s not in a park. So I’m thinking of buying and renting them out.

My ultimate goal is to own a mobile home park, I just need to find a good one that will do owner financing.

George Skidis · Answer

In addition to running the "Illinois Real Estate Investors Association", I manage a mobile home park in Belleville, IL. Owning the dirt and renting the house is a great plan. A better plan is selling the house and renting the dirt.

Mobile homes have a title just like a car. There are recent changes in how they are being taxed in Illinois. Mobile homes in a park are still taxed as personal property and the cost is anywhere from $50 to $200 per year. Mobile homes on their own lots are starting to be taxed as real estate $1,000 and up.

There are two types of occupants in a mobile home park. Owner occupants and park owned homes. As a park owner I will not allow you to own and sublet. The reason for that is I have no idea how bad someone sucks at tenant screening. Since I cannot evict your tenants, I would be forced to take you to court and evict your mobile home. That entails removing it from the lot and placing it in a storage area. I will then need to go after you for all of the expenses of eviction, moving the home and storage fees. My expenses would be about 5 grand or so. If you do not pay, then it is time to place a lien on the title of the home and then do a repo. After which I will move my new mobile home back to the park, rehab it and resell it to an owner occupant and rent the dirt.

You can owner finance a mobile home. It works almost identical to a car loan.