Considering Section 8 investments, What are pros and cons?
Pike County GA · Member since 2024 · 45 posts · 17 votes
Considering Section 8 investments, What are pros and cons?
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesits a specialty niche no doubt.. those that think its easy and guranteed rent usually end up in a bad place.. those that Micro manage every aspect and are local and know what to expect can make it work..
However one just needs to consider the tenant base of section 8 basically nationwide.. your talking single mothers and multiple children .. those are the toughest situations for the homes for on going maintenance and repairs. And if does not matter if your section 8 or not but you have small children living in a home your homes are going to take a lot of abuse.. Kids are kids and they bang into things they break things they break window shades they stand on oven doors they spill things etc etc..
51 Replies
- 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
Thank you for the information and the recommendation of the book. I have been working along side our city development director to take my current properties to a new level. We want to make a better/nice property for people to be proud to call home. That is part of what makes me reluctant to pursue S8. The city has been great so far. I will definitely discuss this inquiry with them. I will also check out the reading recommendation.
thank you,Shane
- 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
Thank you for the information and the recommendation of the book. I have been working along side our city development director to take my current properties to a new level. We want to make a better/nice property for people to be proud to call home. That is part of what makes me reluctant to pursue S8. The city has been great so far. I will definitely discuss this inquiry with them. I will also check out the reading recommendation.
thank you,Shane
@Shane Moore I'm not sure why you can't do both at the same time. On a separate note, are you personally connected/invested in the community for a specific reason? Most of my clients look to give back to communities through their real estate development skills and generally have 1 of 3 things involved, 1) They grew up in the community, 2) They still go to church in the area, and 3) They have family members that still live in the area. Do any of these resonate with you?
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
Thank you for the information and the recommendation of the book. I have been working along side our city development director to take my current properties to a new level. We want to make a better/nice property for people to be proud to call home. That is part of what makes me reluctant to pursue S8. The city has been great so far. I will definitely discuss this inquiry with them. I will also check out the reading recommendation.
thank you,Shane
@Shane Moore I'm not sure why you can't do both at the same time. On a separate note, are you personally connected/invested in the community for a specific reason? Most of my clients look to give back to communities through their real estate development skills and generally have 1 of 3 things involved, 1) They grew up in the community, 2) They still go to church in the area, and 3) They have family members that still live in the area. Do any of these resonate with you?
True… my company is a Biblically based company who strives to give back to the community and its surrounding area. I am only about 15 minutes down the road from my rentals and I am a very Astor in the community! I also have family in the area. It’s more than bricks and mortar to us. It’s about building community and serving people. What we do is a part of our ministry… at least I see what we do as ministry.
Blessings
Shane
- 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Jaycee Greene:
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
I finance mostly with a local bank which is a portfolio lender. They will do multiple loans without limiting how many I can take as long as they are a solid deal and make sense for both parties. I also have some private money investors that fund some deals for me. Most of the private money is used for the down payments, closing costs, rehab etc. Sometimes I use the private money to do a fix and flip to keep the capitol coming in to ensure I can acquire more rentals (need the capital for down payments) especially if I am buying to rehab and hold. My private money lenders typically loan for 1 year with a return of principle and interest at the end of the year term. I don't want to worry about if the ARV is too tight for a buy and hold to get the private money investors their money back through a Refinance or DSCR so I try not to use private money on these deals.
My brain must have out ran my fingers as far as the Astor... That was supposed to say that I am a local pastor. HaHa... sorry for the confusion. - 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Shane Moore:
Quote from @Jaycee Greene:
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
I finance mostly with a local bank which is a portfolio lender. They will do multiple loans without limiting how many I can take as long as they are a solid deal and make sense for both parties. I also have some private money investors that fund some deals for me. Most of the private money is used for the down payments, closing costs, rehab etc. Sometimes I use the private money to do a fix and flip to keep the capitol coming in to ensure I can acquire more rentals (need the capital for down payments) especially if I am buying to rehab and hold. My private money lenders typically loan for 1 year with a return of principle and interest at the end of the year term. I don't want to worry about if the ARV is too tight for a buy and hold to get the private money investors their money back through a Refinance or DSCR so I try not to use private money on these deals.
My brain must have out ran my fingers as far as the Astor... That was supposed to say that I am a local pastor. HaHa... sorry for the confusion.@Shane Moore That's what I figured (being a pastor), but I didn't want to assume. Is your local bank doing DSCR loans at 1.25x with a 70% LTV?
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
I finance mostly with a local bank which is a portfolio lender. They will do multiple loans without limiting how many I can take as long as they are a solid deal and make sense for both parties. I also have some private money investors that fund some deals for me. Most of the private money is used for the down payments, closing costs, rehab etc. Sometimes I use the private money to do a fix and flip to keep the capitol coming in to ensure I can acquire more rentals (need the capital for down payments) especially if I am buying to rehab and hold. My private money lenders typically loan for 1 year with a return of principle and interest at the end of the year term. I don't want to worry about if the ARV is too tight for a buy and hold to get the private money investors their money back through a Refinance or DSCR so I try not to use private money on these deals.
My brain must have out ran my fingers as far as the Astor... That was supposed to say that I am a local pastor. HaHa... sorry for the confusion.@Shane Moore That's what I figured (being a pastor), but I didn't want to assume. Is your local bank doing DSCR loans at 1.25x with a 70% LTV?
Yes sir. That is the pretty much the deal. However, they are willing to do a construction loan for the purchase & rehab and once construction is finished up and tenants in place they close and refinance to the DSCR loan for a 30 year. They don't seem to require a seasoning period.
Shane - 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
I finance mostly with a local bank which is a portfolio lender. They will do multiple loans without limiting how many I can take as long as they are a solid deal and make sense for both parties. I also have some private money investors that fund some deals for me. Most of the private money is used for the down payments, closing costs, rehab etc. Sometimes I use the private money to do a fix and flip to keep the capitol coming in to ensure I can acquire more rentals (need the capital for down payments) especially if I am buying to rehab and hold. My private money lenders typically loan for 1 year with a return of principle and interest at the end of the year term. I don't want to worry about if the ARV is too tight for a buy and hold to get the private money investors their money back through a Refinance or DSCR so I try not to use private money on these deals.
My brain must have out ran my fingers as far as the Astor... That was supposed to say that I am a local pastor. HaHa... sorry for the confusion.@Shane Moore That's what I figured (being a pastor), but I didn't want to assume. Is your local bank doing DSCR loans at 1.25x with a 70% LTV?
Yes sir. That is the pretty much the deal. However, they are willing to do a construction loan for the purchase & rehab and once construction is finished up and tenants in place they close and refinance to the DSCR loan for a 30 year. They don't seem to require a seasoning period.
Shane@Shane Moore That is tremendous! That bank must be VERY comfortable with real estate lending. Is it based in ATL? Are you buying the properties in an LLC or in your personal name?
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
I finance mostly with a local bank which is a portfolio lender. They will do multiple loans without limiting how many I can take as long as they are a solid deal and make sense for both parties. I also have some private money investors that fund some deals for me. Most of the private money is used for the down payments, closing costs, rehab etc. Sometimes I use the private money to do a fix and flip to keep the capitol coming in to ensure I can acquire more rentals (need the capital for down payments) especially if I am buying to rehab and hold. My private money lenders typically loan for 1 year with a return of principle and interest at the end of the year term. I don't want to worry about if the ARV is too tight for a buy and hold to get the private money investors their money back through a Refinance or DSCR so I try not to use private money on these deals.
My brain must have out ran my fingers as far as the Astor... That was supposed to say that I am a local pastor. HaHa... sorry for the confusion.@Shane Moore That's what I figured (being a pastor), but I didn't want to assume. Is your local bank doing DSCR loans at 1.25x with a 70% LTV?
Yes sir. That is the pretty much the deal. However, they are willing to do a construction loan for the purchase & rehab and once construction is finished up and tenants in place they close and refinance to the DSCR loan for a 30 year. They don't seem to require a seasoning period.
Shane@Shane Moore That is tremendous! That bank must be VERY comfortable with real estate lending. Is it based in ATL? Are you buying the properties in an LLC or in your personal name?
I am buying in my LLC. The bank is based out of Talbotton Ga. and have 3-4 different locations. - 1yJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
@Shane Moore How do you finance your properties? Local banks/credit unions that see the CRA (Community Reinvestment Act) type of work you're doing, or perhaps a CDFI that lends to mission oriented organizations like yours?
Also, what is an Astor?
I finance mostly with a local bank which is a portfolio lender. They will do multiple loans without limiting how many I can take as long as they are a solid deal and make sense for both parties. I also have some private money investors that fund some deals for me. Most of the private money is used for the down payments, closing costs, rehab etc. Sometimes I use the private money to do a fix and flip to keep the capitol coming in to ensure I can acquire more rentals (need the capital for down payments) especially if I am buying to rehab and hold. My private money lenders typically loan for 1 year with a return of principle and interest at the end of the year term. I don't want to worry about if the ARV is too tight for a buy and hold to get the private money investors their money back through a Refinance or DSCR so I try not to use private money on these deals.
My brain must have out ran my fingers as far as the Astor... That was supposed to say that I am a local pastor. HaHa... sorry for the confusion.@Shane Moore That's what I figured (being a pastor), but I didn't want to assume. Is your local bank doing DSCR loans at 1.25x with a 70% LTV?
Yes sir. That is the pretty much the deal. However, they are willing to do a construction loan for the purchase & rehab and once construction is finished up and tenants in place they close and refinance to the DSCR loan for a 30 year. They don't seem to require a seasoning period.
Shane@Shane Moore That is tremendous! That bank must be VERY comfortable with real estate lending. Is it based in ATL? Are you buying the properties in an LLC or in your personal name?
I am buying in my LLC. The bank is based out of Talbotton Ga. and have 3-4 different locations.@Shane Moore That relationship is gold for you - but depending on the size of the bank, they may get maxed out on the loans to you if/when you exceed a few million dollars. You may have a backup banker in place. Good luck to you!
- Investor · Member since 2020 · 32 posts · 33 votes1y
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
Thank you for the information and the recommendation of the book. I have been working along side our city development director to take my current properties to a new level. We want to make a better/nice property for people to be proud to call home. That is part of what makes me reluctant to pursue S8. The city has been great so far. I will definitely discuss this inquiry with them. I will also check out the reading recommendation.
thank you,Shane
@Shane Moore I specialize in "high end" section 8 rentals and while I agree with al ot of what is being said in this thread, there is definitely a correlation between providing a nice house and receiving less damage. Landlords that provide crappy housing and dont repond to issues will see their properties get badly damaged and wonder why, while great landlords that provide top end housing for their tenant base will be surprised by how well the property is treated. Happy to share more insights on my experience with providing the nicer properties in the section 8 rental pool.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Michael Goldberg:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
Thank you for the information and the recommendation of the book. I have been working along side our city development director to take my current properties to a new level. We want to make a better/nice property for people to be proud to call home. That is part of what makes me reluctant to pursue S8. The city has been great so far. I will definitely discuss this inquiry with them. I will also check out the reading recommendation.
thank you,Shane
@Shane Moore I specialize in "high end" section 8 rentals and while I agree with al ot of what is being said in this thread, there is definitely a correlation between providing a nice house and receiving less damage. Landlords that provide crappy housing and dont repond to issues will see their properties get badly damaged and wonder why, while great landlords that provide top end housing for their tenant base will be surprised by how well the property is treated. Happy to share more insights on my experience with providing the nicer properties in the section 8 rental pool.
to me as someone who owed a few hundred section 8 homes and did basic gut rehabs before renting.. the issue is the tenant base in most to many areas.. single mother many kids I dont care what you do.. those kids are going to just cause damage.. I mean I had a toddler liviing with us for a few months and holy crap.. No one can contain those little guys/gals.. Take a single mom and 2 to 5 kids or more and your house is going to take a fair amount of abuse no question about it.. Just sayin - Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Michael Goldberg:
Quote from @Shane Moore:
Quote from @Jaycee Greene:
Quote from @Shane Moore:
Good morning BP family,
I currently hold a couple of Long Term rentals one sfh and one duplex with a commercial property north of Macon and have a friend that invests in the area but does not have section 8 rentals because she inherited all of her properties and they were never set up as section 8. That being said, I have been considering section 8 sfh investments here in Macon Ga. and wanted to get feedback from those who have been there and done that or have experience in that specific market. What are the pros and cons of section 8 investing? Is it worth the headache (dealing with the government is bound to be a headache) at least this is my assumption. Does it result in properties more prone to property damage, difficult tenants, and troublesome evictions etc. What is the sweet spot for home sizes? Are their certain size homes required (ie. Sqft)? Any guidance and direction in this would be greatly appreciated. I appreciate the wealth of knowledge that you guys represent.
Peace and Blessings,
Shane
Hey @Shane Moore The success (or not) of S8 properties can be highly dependent on your relationship with the housing authority that manages the area. You'll want to know what the FMR (Fair Market Rent) is for your zip code/bedroom count. My clients that have S8 units do a lot of upfront tenant screening, which can reduce the amount of damage/tenant issues. Also, I'd highly recommend checking out Mike Curadossi's, "Section 8 Done Right".
Thank you for the information and the recommendation of the book. I have been working along side our city development director to take my current properties to a new level. We want to make a better/nice property for people to be proud to call home. That is part of what makes me reluctant to pursue S8. The city has been great so far. I will definitely discuss this inquiry with them. I will also check out the reading recommendation.
thank you,Shane
@Shane Moore I specialize in "high end" section 8 rentals and while I agree with al ot of what is being said in this thread, there is definitely a correlation between providing a nice house and receiving less damage. Landlords that provide crappy housing and dont repond to issues will see their properties get badly damaged and wonder why, while great landlords that provide top end housing for their tenant base will be surprised by how well the property is treated. Happy to share more insights on my experience with providing the nicer properties in the section 8 rental pool.
Yes please... I am like a sponge! There is so much wisdom on this forum it is unreal. You guys have been there and done that and I am just really getting started. As of now, I do complete gut rehabs in my investment area. SFH and Duplex are mostly what I have been purchasing and rehabbing. We strive to go above and and beyond anything that most in our investment are doing at this point. Many of the homes in my area don't have central heat and air, most are heated by gas heaters or a fire place even. One of the first features that I focus on is HVAC, whether a High Efficiency Mini Split system or traditional depending on the home. We do all recessed LED lighting, drop ceilings in most cases to allow for more economical heating and cooling, butcher block counter tops, LVP flooring, tile shower, tile tub enclosures with tile bathroom floors and tile mud rooms. Each property receives new windows, new plumbing, new electrical upgrade (if needed) and new exterior doors.
Doing these things is an expense but it seems to set us apart in our rental market. Many of the homes that are being rented out are run down and are in rough shape so our homes seem to be getting some attention and have gotten a lot of positive feedback.
Thank you for the insight!
Peace and Blessings,
Shane
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
its a specialty niche no doubt.. those that think its easy and guranteed rent usually end up in a bad place.. those that Micro manage every aspect and are local and know what to expect can make it work..
However one just needs to consider the tenant base of section 8 basically nationwide.. your talking single mothers and multiple children .. those are the toughest situations for the homes for on going maintenance and repairs. And if does not matter if your section 8 or not but you have small children living in a home your homes are going to take a lot of abuse.. Kids are kids and they bang into things they break things they break window shades they stand on oven doors they spill things etc etc..
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Jay Hinrichs:
its a specialty niche no doubt.. those that think its easy and guranteed rent usually end up in a bad place.. those that Micro manage every aspect and are local and know what to expect can make it work..
However one just needs to consider the tenant base of section 8 basically nationwide.. your talking single mothers and multiple children .. those are the toughest situations for the homes for on going maintenance and repairs. And if does not matter if your section 8 or not but you have small children living in a home your homes are going to take a lot of abuse.. Kids are kids and they bang into things they break things they break window shades they stand on oven doors they spill things etc etc..
Definitely a great point to consider… the community that I am currently in is definitely catering to those who have multiple children as well. Thanks for the feedback.
Blessings,
Shane
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Account Closed:
Section 8 investments offer pros like guaranteed rent payments from the government, high demand in low-income areas, and long-term tenants, but cons include strict property inspections, potential for higher maintenance due to tenant wear, and bureaucratic delays in approvals or payments.
It’s almost seems counterintuitive to buy and rehab to a higher quality home if it’s just going to to be destroyed. However that is what the city development director and I are hoping to do. What are your thoughts?
Blessings
Shane
- 1yColleen F.Pro MemberInvestor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
@Shane Moore It differs by area but I think many go into Section 8 because when renting to a low income tenant they feel safer with a S8 tenant than with a working tenant paying all their own rent. The perception and it may be true is that the tenant paying all their own rent is one crisis shy of failing to pay. I take who is qualified and I think you are still doing a service for people. I have blue collar workers who I know were grateful for the chance to get a unit because they had less rental history and while they qualify aren't the highest earning or credit score. They are not S8 but construction and local business employees. I have had some S8 applicants but they just take too long and that is one of the issues with S8, if you have lead time to fill a unit it is fine but if you don't it can take too long. Also they won't inspect until you have a tenant so for a fresh rehab ok but an older building they could have issues. Make sure your local inspectors are reasonable.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Colleen F.:
@Shane Moore It differs by area but I think many go into Section 8 because when renting to a low income tenant they feel safer with a S8 tenant than with a working tenant paying all their own rent. The perception and it may be true is that the tenant paying all their own rent is one crisis shy of failing to pay. I take who is qualified and I think you are still doing a service for people. I have blue collar workers who I know were grateful for the chance to get a unit because they had less rental history and while they qualify aren't the highest earning or credit score. They are not S8 but construction and local business employees. I have had some S8 applicants but they just take too long and that is one of the issues with S8, if you have lead time to fill a unit it is fine but if you don't it can take too long. Also they won't inspect until you have a tenant so for a fresh rehab ok but an older building they could have issues. Make sure your local inspectors are reasonable.
I see your point here. Waiting to fill a unit could definitely outweigh the perks if not careful. thank you for the feedback! I appreciate all of you.
Peace and Blessings
Shane
- Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes1y
I have done either section 8 or low income the majority of my run at this. I see a lot of valuable information in this thread. However, I do caution you there are several in BP who have no idea what they are talking about in regard to this and give you some of the most azzz backwards advice on this. Please be selective on who you get this info from, and your best bet is to pay close attention to those who have made this work for years successfully. Number one, you have to know and understand the environment you will be investing in. Two, it's great to have some understanding of the culture. Three, you emphatically have to know how to screen. You can't just put anyone there because they have a voucher. Four, treat them with decency and respect, and build some kind of mutually, grounded relationship. It's a few more, but these are some fundamentals that go a very long way.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Mark Cruse:
I have done either section 8 or low income the majority of my run at this. I see a lot of valuable information in this thread. However, I do caution you there are several in BP who have no idea what they are talking about in regard to this and give you some of the most azzz backwards advice on this. Please be selective on who you get this info from, and your best bet is to pay close attention to those who have made this work for years successfully. Number one, you have to know and understand the environment you will be investing in. Two, it's great to have some understanding of the culture. Three, you emphatically have to know how to screen. You can't just put anyone there because they have a voucher. Four, treat them with decency and respect, and build some kind of mutually, grounded relationship. It's a few more, but these are some fundamentals that go a very long way.
Great advice. I appreciate it... Treating people with respect is key to any relationship so, I am definitely on board with that. I already work in the school system in the county next door to the my investment area. I want to strive to make a difference in the communities that I serve so, I do study the market locally and strive to keep my finger on the pulse. I have been trying to meet up locally with some who are investing and many just don't seem interested in investing in the area because of the lower values of the property. Thanks again for the sound advice.
Peace and Blessings
Shane - Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Mark Cruse:
I have done either section 8 or low income the majority of my run at this. I see a lot of valuable information in this thread. However, I do caution you there are several in BP who have no idea what they are talking about in regard to this and give you some of the most azzz backwards advice on this. Please be selective on who you get this info from, and your best bet is to pay close attention to those who have made this work for years successfully. Number one, you have to know and understand the environment you will be investing in. Two, it's great to have some understanding of the culture. Three, you emphatically have to know how to screen. You can't just put anyone there because they have a voucher. Four, treat them with decency and respect, and build some kind of mutually, grounded relationship. It's a few more, but these are some fundamentals that go a very long way.
I would love to hear more about the screening process that you recommend if you don't mind sharing. I am still a newby at this and don't want to cause myself undue trouble.
Thank you for your time!
Shane - Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes1y
Quote from @Shane Moore:
Quote from @Mark Cruse:
I have done either section 8 or low income the majority of my run at this. I see a lot of valuable information in this thread. However, I do caution you there are several in BP who have no idea what they are talking about in regard to this and give you some of the most azzz backwards advice on this. Please be selective on who you get this info from, and your best bet is to pay close attention to those who have made this work for years successfully. Number one, you have to know and understand the environment you will be investing in. Two, it's great to have some understanding of the culture. Three, you emphatically have to know how to screen. You can't just put anyone there because they have a voucher. Four, treat them with decency and respect, and build some kind of mutually, grounded relationship. It's a few more, but these are some fundamentals that go a very long way.
I would love to hear more about the screening process that you recommend if you don't mind sharing. I am still a newby at this and don't want to cause myself undue trouble.
Thank you for your time!
ShaneThe class of neighborhood kind of dictates what credit score you should require. I have one community that was so bad, that it made no sense to ask for a credit score because anyone moving there all had jacked up credit. I would never have a renter. However, in my class C or Bs, if I do section 8 I require from 600 to 640. There is no special formula for that. I know people who go much lower and much higher. It just depends. Also, I know how to read people. I evacuate their energy and how they move. I've had women come through to view the place with all kinds of attitude and negative vibes. I know these are the types that will give me a major headache as a landlord. Look at the criminal history. Make sure they have refences and see what they think. Talk to past landlords and evaluate the experiences they have had. Social media says a lot about a person. If they always seem to be in turmoil, it may not be a good fit. If they are always taking about how they cussed this bit## out or how they put their foot in someone's azzz daily, may not want to deal with that energy. There are many other methods but with these basic gestures it will take you a long way. I build mutually respectful relationships, and it goes well for most. Another thing to beware of is some single mothers. Many of them are fine but they bring along dudes who create all kinds of problems for you and the property. I can say, it can be challenging and at times you have to put up with more than you would with an ordinary rental, but I have managed to make all this work overall. One thing you said that stood out to me. You said something about providing some type of positive service to the community. Now this is my personal opinion, and you can do what you want. I had that mindset as well. That changed for multiple reasons and the advocacy and business don't seem to align well in this business. I do my community advocacy away from my business in this aspect. What i still do along those lines is provide them with a positive landlord experience, respect and a nice place to live. Many landlords do not. Overall, I want you to win, and you are doing it right by doing this kind of research up front.
Best of luck.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Mark Cruse:
Quote from @Shane Moore:
Quote from @Mark Cruse:
I have done either section 8 or low income the majority of my run at this. I see a lot of valuable information in this thread. However, I do caution you there are several in BP who have no idea what they are talking about in regard to this and give you some of the most azzz backwards advice on this. Please be selective on who you get this info from, and your best bet is to pay close attention to those who have made this work for years successfully. Number one, you have to know and understand the environment you will be investing in. Two, it's great to have some understanding of the culture. Three, you emphatically have to know how to screen. You can't just put anyone there because they have a voucher. Four, treat them with decency and respect, and build some kind of mutually, grounded relationship. It's a few more, but these are some fundamentals that go a very long way.
I would love to hear more about the screening process that you recommend if you don't mind sharing. I am still a newby at this and don't want to cause myself undue trouble.
Thank you for your time!
ShaneThe class of neighborhood kind of dictates what credit score you should require. I have one community that was so bad, that it made no sense to ask for a credit score because anyone moving there all had jacked up credit. I would never have a renter. However, in my class C or Bs, if I do section 8 I require from 600 to 640. There is no special formula for that. I know people who go much lower and much higher. It just depends. Also, I know how to read people. I evacuate their energy and how they move. I've had women come through to view the place with all kinds of attitude and negative vibes. I know these are the types that will give me a major headache as a landlord. Look at the criminal history. Make sure they have refences and see what they think. Talk to past landlords and evaluate the experiences they have had. Social media says a lot about a person. If they always seem to be in turmoil, it may not be a good fit. If they are always taking about how they cussed this bit## out or how they put their foot in someone's azzz daily, may not want to deal with that energy. There are many other methods but with these basic gestures it will take you a long way. I build mutually respectful relationships, and it goes well for most. Another thing to beware of is some single mothers. Many of them are fine but they bring along dudes who create all kinds of problems for you and the property. I can say, it can be challenging and at times you have to put up with more than you would with an ordinary rental, but I have managed to make all this work overall. One thing you said that stood out to me. You said something about providing some type of positive service to the community. Now this is my personal opinion, and you can do what you want. I had that mindset as well. That changed for multiple reasons and the advocacy and business don't seem to align well in this business. I do my community advocacy away from my business in this aspect. What i still do along those lines is provide them with a positive landlord experience, respect and a nice place to live. Many landlords do not. Overall, I want you to win, and you are doing it right by doing this kind of research up front.
Best of luck.
Thank you for taking time to give me all of this feedback. I really appreciate the shared wisdom!
Peace and Blessings
Shane - 1yMelissa JusticeBusiness MemberRental Property Investor · Phoenix, AZ · Member since 2024 · 518 posts · 1k+ votes
Quote from @Mark Cruse:
Quote from @Shane Moore:
Quote from @Mark Cruse:
I have done either section 8 or low income the majority of my run at this. I see a lot of valuable information in this thread. However, I do caution you there are several in BP who have no idea what they are talking about in regard to this and give you some of the most azzz backwards advice on this. Please be selective on who you get this info from, and your best bet is to pay close attention to those who have made this work for years successfully. Number one, you have to know and understand the environment you will be investing in. Two, it's great to have some understanding of the culture. Three, you emphatically have to know how to screen. You can't just put anyone there because they have a voucher. Four, treat them with decency and respect, and build some kind of mutually, grounded relationship. It's a few more, but these are some fundamentals that go a very long way.
I would love to hear more about the screening process that you recommend if you don't mind sharing. I am still a newby at this and don't want to cause myself undue trouble.
Thank you for your time!
ShaneThe class of neighborhood kind of dictates what credit score you should require. I have one community that was so bad, that it made no sense to ask for a credit score because anyone moving there all had jacked up credit. I would never have a renter. However, in my class C or Bs, if I do section 8 I require from 600 to 640. There is no special formula for that. I know people who go much lower and much higher. It just depends. Also, I know how to read people. I evacuate their energy and how they move. I've had women come through to view the place with all kinds of attitude and negative vibes. I know these are the types that will give me a major headache as a landlord. Look at the criminal history. Make sure they have refences and see what they think. Talk to past landlords and evaluate the experiences they have had. Social media says a lot about a person. If they always seem to be in turmoil, it may not be a good fit. If they are always taking about how they cussed this bit## out or how they put their foot in someone's azzz daily, may not want to deal with that energy. There are many other methods but with these basic gestures it will take you a long way. I build mutually respectful relationships, and it goes well for most. Another thing to beware of is some single mothers. Many of them are fine but they bring along dudes who create all kinds of problems for you and the property. I can say, it can be challenging and at times you have to put up with more than you would with an ordinary rental, but I have managed to make all this work overall. One thing you said that stood out to me. You said something about providing some type of positive service to the community. Now this is my personal opinion, and you can do what you want. I had that mindset as well. That changed for multiple reasons and the advocacy and business don't seem to align well in this business. I do my community advocacy away from my business in this aspect. What i still do along those lines is provide them with a positive landlord experience, respect and a nice place to live. Many landlords do not. Overall, I want you to win, and you are doing it right by doing this kind of research up front.
Best of luck.
I've found out lots of info from the social media searches --lies unveiled! ha! Good advice for sure!
- Member since 2023 · 4 posts · 4 votes1y
My first property was section 8 in Seattle. What@Jaycee Greene said about the housing authority is correct. In Seattle it was staffed by people that saw themselves as protectors of the tenants, and me, the landlord, as the enemy. They operated like a labor union for employees. It was extremely hostile towards owners. I suspect being in Seattle had a lot to do with it. If you're in a Red state this probably isn't as much the case.
- Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes1y
Pro, Money on time , con inspections lol
- Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes1y
@Shane Moore Many of our Section 8 tenants have been single mothers with 2 different gender kids, which requires them to have a 3 br unit. Many have full time or part time jobs. One was a low paid state worker, another was a LPN, while another worked at a day care. 3 people in a 3 br unit is the least number of tenants possible and therefore least wear and tear. Most of our Section 8 tenants get partial rent payment and only few have gotten near full rent payments. We have had section 8 tenants who were single elderly tenants, and we have also rented 4 and 5 bedroom section 8 tenants. They 4 br house was rented to a family with 2 parents and 8 sons. They could not find many places that would rent to a family with 8 boys. They ended up staying 12 years, and were very organized and good tenants. The 5 br house was rented to a 3 generational family, who came from another housing program for homeless, and the housing authority was housing them in a hotel. They stayed 8 years. The housing authority does yearly inspections, and sometimes spot inspections if there are some problems. One of our tenants had monthly inspections due to poor "housekeeping" issues; until they corrected the problem. Inspection items are pretty standard, no peeling paint, no cracked glass, railings on stairs (inside and outside including basements and attics), heat and electric to every room, and a range. The HUD approved rents for the entire country is on the HUD website.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @David Krulac:
@Shane Moore Many of our Section 8 tenants have been single mothers with 2 different gender kids, which requires them to have a 3 br unit. Many have full time or part time jobs. One was a low paid state worker, another was a LPN, while another worked at a day care. 3 people in a 3 br unit is the least number of tenants possible and therefore least wear and tear. Most of our Section 8 tenants get partial rent payment and only few have gotten near full rent payments. We have had section 8 tenants who were single elderly tenants, and we have also rented 4 and 5 bedroom section 8 tenants. They 4 br house was rented to a family with 2 parents and 8 sons. They could not find many places that would rent to a family with 8 boys. They ended up staying 12 years, and were very organized and good tenants. The 5 br house was rented to a 3 generational family, who came from another housing program for homeless, and the housing authority was housing them in a hotel. They stayed 8 years. The housing authority does yearly inspections, and sometimes spot inspections if there are some problems. One of our tenants had monthly inspections due to poor "housekeeping" issues; until they corrected the problem. Inspection items are pretty standard, no peeling paint, no cracked glass, railings on stairs (inside and outside including basements and attics), heat and electric to every room, and a range. The HUD approved rents for the entire country is on the HUD website.
Thank you for the feedback. It is nice to hear of some positive feedback in the realm of S8... I was beginning to wonder if there were any. Long term tenants are typically a good sign.
- Real Estate Consultant · Roswell, GA · Member since 2023 · 50 posts · 26 votes1y
Great question about Section 8 tenants and their "character."
In my previous career as a Director of Operations (now an Investomen Realtor), overseeing about 9,000 single-family homes based out of Atlanta, I saw the good, the bad, and the ugly when it came to Section 8. I'll share some of the hard KPI data we tracked, as well as a few softer, more anecdotal observations:
Hard Facts:
-
Higher Turnover Costs, Longer Tenancy: Property turns (make-ready costs) tend to be higher after a Section 8 tenant moves out. However, the upside is that their tenancy is usually longer, often because it's one of their few stable housing options. A tenant who stays 10 years can be far more profitable than three market-rate tenants who each stay three years and require three separate costly turns.
-
Higher Cash Flow, Lower Appreciation: Generally, properties with Section 8 tenants will have higher gross incomes, cap rates, and cash flow. The trade-off is often lower property appreciation, due to the demographic and economic trends in lower-income areas.
-
Vacancy Risk on Turnover: When a Section 8 tenant moves out, there isn't always a "line out the door" of new voucher holders ready to move in. Vacancy losses can sometimes be longer compared to traditional rentals.
-
Payment Delays: Depending on the housing authority, voucher payments can be delayed, sometimes significantly. For example, Fulton County (GA) could take months to process initial payments, eventually paying several months at once after a tenant moved in. Make sure you factor that cash flow timing into your projections.
Softer Observations:
-
Relationship Matters: Building a good relationship with your Section 8 tenants can go a long way. Many of these tenants have faced tough circumstances and simply want to be treated fairly and with dignity, not just as another "unit number." Tenants who feel respected tend to take better care of the property and stay longer.
It sounds like you're already on the right track by building relationships and establishing a pipeline before vacancies arise. Being proactive is critical, especially because waiting on the government side of the process can take time.
I'd also recommend checking with local housing authorities. I’ve had good experiences working with the Marietta Housing Authority , very professional and helpful. There may be a similar resource in Houston County that can assist you.
Best of luck, and feel free to reach out if you’d like to discuss further. Happy to help if I can!
Mark Faulkner
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Mark Faulkner:
Great question about Section 8 tenants and their "character."
In my previous career as a Director of Operations (now an Investomen Realtor), overseeing about 9,000 single-family homes based out of Atlanta, I saw the good, the bad, and the ugly when it came to Section 8. I'll share some of the hard KPI data we tracked, as well as a few softer, more anecdotal observations:
Hard Facts:
-
Higher Turnover Costs, Longer Tenancy: Property turns (make-ready costs) tend to be higher after a Section 8 tenant moves out. However, the upside is that their tenancy is usually longer, often because it's one of their few stable housing options. A tenant who stays 10 years can be far more profitable than three market-rate tenants who each stay three years and require three separate costly turns.
-
Higher Cash Flow, Lower Appreciation: Generally, properties with Section 8 tenants will have higher gross incomes, cap rates, and cash flow. The trade-off is often lower property appreciation, due to the demographic and economic trends in lower-income areas.
-
Vacancy Risk on Turnover: When a Section 8 tenant moves out, there isn't always a "line out the door" of new voucher holders ready to move in. Vacancy losses can sometimes be longer compared to traditional rentals.
-
Payment Delays: Depending on the housing authority, voucher payments can be delayed, sometimes significantly. For example, Fulton County (GA) could take months to process initial payments, eventually paying several months at once after a tenant moved in. Make sure you factor that cash flow timing into your projections.
Softer Observations:
-
Relationship Matters: Building a good relationship with your Section 8 tenants can go a long way. Many of these tenants have faced tough circumstances and simply want to be treated fairly and with dignity, not just as another "unit number." Tenants who feel respected tend to take better care of the property and stay longer.
It sounds like you're already on the right track by building relationships and establishing a pipeline before vacancies arise. Being proactive is critical, especially because waiting on the government side of the process can take time.
I'd also recommend checking with local housing authorities. I’ve had good experiences working with the Marietta Housing Authority , very professional and helpful. There may be a similar resource in Houston County that can assist you.
Best of luck, and feel free to reach out if you’d like to discuss further. Happy to help if I can!
Mark Faulkner
Wow... that is a wealth of information. I will definitely be referring back to this post from time to time. I had not thought about the delayed initial start of payments either. I certainly appreciate the insight. Before I ever purchased my first property in the area I am investing in I went and sat down with the city development director and the building and zoning director to share my vision and ask them what they would like to see done in the city/county. I have already begun to see the fruits of that foundational work as I am now renovating a larger home and converting it into a duplex at the city directors encouragement & blessing. I am really focused on relationship building for the city and the prospective tenants.
Thank you for the advice...
Peace and Blessings
Shane -
-
- Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes1y
First, let me say whether you get S8 or a working tenant-- it 100% depends on the tenant. I have 1 I absolutely love, we are going on 6 years and I love having her as a tenant. I have terminated separate 3 -S8 leases because of disrespect and they were trashing my house. It's really a different mindset and attitude, hard to explain but it's just different.
Second-- If you are going to focus on S8, realize you aren't dealing with tenants who have a lot of extra disposable income. My best advice is the charge the absolute highest amount per your local guidelines, because you'll need to include regular HVAC maintenance, filter changes (they won't do it, promise!), pest control, landscaping, breaking appliances, people are hard on these houses! Knowing what I know now, I'd also include a professional cleaner to come once a year. Seriously, you won't even know the real damage until they move out.
The more you can include, the better that way you know it's actually being taken care of. I think they'll be happier too if stuff is included in rent, as it's not an extra expense on them!
- Pike County GA · Member since 2024 · 45 posts · 17 votes1yI had never really thought of it that way. The yearly cleaning is genius. It lets them know that no matter what there will be yearly cleanings… it kind of sets the tone. I could see how lawn maintenance could become an issue rather quickly, especially with a big yard. So you put all of that in their monthly cost/rent? Are you saying just charge the maximum allowable amount because all of those things are going to have to be covered.
Quote from @Linda S.:
First, let me say whether you get S8 or a working tenant-- it 100% depends on the tenant. I have 1 I absolutely love, we are going on 6 years and I love having her as a tenant. I have terminated separate 3 -S8 leases because of disrespect and they were trashing my house. It's really a different mindset and attitude, hard to explain but it's just different.
Second-- If you are going to focus on S8, realize you aren't dealing with tenants who have a lot of extra disposable income. My best advice is the charge the absolute highest amount per your local guidelines, because you'll need to include regular HVAC maintenance, filter changes (they won't do it, promise!), pest control, landscaping, breaking appliances, people are hard on these houses! Knowing what I know now, I'd also include a professional cleaner to come once a year. Seriously, you won't even know the real damage until they move out.
The more you can include, the better that way you know it's actually being taken care of. I think they'll be happier too if stuff is included in rent, as it's not an extra expense on them!
Peace and Blessings,
Shane - Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes1y
Quote from @Shane Moore:
I had never really thought of it that way. The yearly cleaning is genius. It lets them know that no matter what there will be yearly cleanings… it kind of sets the tone. I could see how lawn maintenance could become an issue rather quickly, especially with a big yard. So you put all of that in their monthly cost/rent? Are you saying just charge the maximum allowable amount because all of those things are going to have to be covered.Quote from @Linda S.:
First, let me say whether you get S8 or a working tenant-- it 100% depends on the tenant. I have 1 I absolutely love, we are going on 6 years and I love having her as a tenant. I have terminated separate 3 -S8 leases because of disrespect and they were trashing my house. It's really a different mindset and attitude, hard to explain but it's just different.
Second-- If you are going to focus on S8, realize you aren't dealing with tenants who have a lot of extra disposable income. My best advice is the charge the absolute highest amount per your local guidelines, because you'll need to include regular HVAC maintenance, filter changes (they won't do it, promise!), pest control, landscaping, breaking appliances, people are hard on these houses! Knowing what I know now, I'd also include a professional cleaner to come once a year. Seriously, you won't even know the real damage until they move out.
The more you can include, the better that way you know it's actually being taken care of. I think they'll be happier too if stuff is included in rent, as it's not an extra expense on them!
Peace and Blessings,
ShaneUnfortunately, I came from the other end where majority of my tenants are not S8, so my rates are a little below market. I normally don't include anything, and it was HORRIBLE at turnover-- I had to re-do EVERYTHING!!
If I proactively did S8-- I would absolutely charge the most allowable, and include everything possible so that way you know your house is getting taken care of. It will help the entire relationship, because tenants won't care (they pay their portion regardless if it's 800, or 2800 rent), and you will be better off in the long run. This isn't about being nice to tenants, it's honestly being proactive for YOU-- your HVAC, your lawn, your house. Guaranteed rent is peanuts compared to if your house gets trashed. IMO this is the only one that works for both parties.
- 1yEthan HaiglerBusiness MemberReal Estate Agent · Charlotte, NC · Member since 2019 · 111 posts · 58 votes
I love section 8! I have them in multiple markets. They always pay and they are safe during recessionary periods. The housing authority will pay when others cannot. There are additional requirements for the house but the rent is typically more and less risk for us.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Ethan Haigler:
I love section 8! I have them in multiple markets. They always pay and they are safe during recessionary periods. The housing authority will pay when others cannot. There are additional requirements for the house but the rent is typically more and less risk for us.
Thank you for the feedback. I appreciate it.
Blessings,
Shane Moore
- 1yDavid HolcombeBusiness MemberReal Estate Agent · Atlanta, GA · Member since 2016 · 35 posts · 25 votes
I would be aware there are major national budget changes that are proposed to Section 8 funding that could affect your rental income.
"In its request for the Department of Housing and Urban Development (HUD), the White House called the current system of federal rental assistance "dysfunctional" and proposed essentially ending Section 8 and other housing voucher programs. Its plan calls for cutting rental aid by about 40% and sending that money to states "to design their own rental assistance programs based on their unique needs and preferences." "
https://www.npr.org/2025/05/02/nx-s1-5374077/trump-budget-ho...
David Holcombe - Holcombe Real Estate53 Reviews- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @David Holcombe:
I would be aware there are major national budget changes that are proposed to Section 8 funding that could affect your rental income.
"In its request for the Department of Housing and Urban Development (HUD), the White House called the current system of federal rental assistance "dysfunctional" and proposed essentially ending Section 8 and other housing voucher programs. Its plan calls for cutting rental aid by about 40% and sending that money to states "to design their own rental assistance programs based on their unique needs and preferences." "
https://www.npr.org/2025/05/02/nx-s1-5374077/trump-budget-ho...
Thank you for the insight. I will certainly do some digging. I appreciate it.
Blessings,
Shane Moore
- Member since 2025 · 50 posts · 28 votes1y
Good afternoon Shane — you’re asking all the right questions. I can’t speak for Macon specifically, but in Broward County (South Florida), we manage a solid portfolio of Section 8 rentals and I’ll share what we’ve seen in hopes it helps.
Pros we’ve experienced:
-
Consistent rent payments from the housing authority, which is a huge benefit—especially in uncertain economic times.
-
Strong demand for rentals in the voucher program, reducing vacancy risk.
-
Longer tenant retention when homes are well-kept and tenants are treated respectfully.
Challenges:
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Government processes can be slow: Initial inspections and approval timelines can delay move-ins.
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Inspection standards are stricter, so properties may need upfront investment to pass.
-
Like any rental, tenant quality varies. We’ve learned not to rely on the voucher approval alone—screening still matters.
What works well here:
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We’ve had the most success with 3-bedroom single-family homes around 1,200–1,500 sqft.
-
Having great communication with the housing authority and a consistent process for maintenance has helped tremendously.
Section 8 has been a strong strategy for many of our clients here in Broward County, but like any investment, it comes down to systems, expectations, and screening.
Curious—are you planning to self-manage or team up with a local manager who knows how to navigate the Section 8 process?
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Pedro Andrade:
Good afternoon Shane — you’re asking all the right questions. I can’t speak for Macon specifically, but in Broward County (South Florida), we manage a solid portfolio of Section 8 rentals and I’ll share what we’ve seen in hopes it helps.
Pros we’ve experienced:
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Consistent rent payments from the housing authority, which is a huge benefit—especially in uncertain economic times.
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Strong demand for rentals in the voucher program, reducing vacancy risk.
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Longer tenant retention when homes are well-kept and tenants are treated respectfully.
Challenges:
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Government processes can be slow: Initial inspections and approval timelines can delay move-ins.
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Inspection standards are stricter, so properties may need upfront investment to pass.
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Like any rental, tenant quality varies. We’ve learned not to rely on the voucher approval alone—screening still matters.
What works well here:
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We’ve had the most success with 3-bedroom single-family homes around 1,200–1,500 sqft.
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Having great communication with the housing authority and a consistent process for maintenance has helped tremendously.
Section 8 has been a strong strategy for many of our clients here in Broward County, but like any investment, it comes down to systems, expectations, and screening.
Curious—are you planning to self-manage or team up with a local manager who knows how to navigate the Section 8 process?
Thank you for the feedback. All very helpful information. Thank you for sharing.
As far as management goes I plan to manage the first few just to learn the ropes and better understand the system. I know this will come with a few bumps along the way but I want to know and understand the system in order to better screen, better prepare during the rehabs, and to be an all round better landlord. As the number of properties grows I will consider property management.
Thank you again for the insight.
Peace and Blessings,
Shane Moore -
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- Realtor · Macon, GA · Member since 2020 · 25 posts · 13 votes1y
Pedro, I'm the Featured Agent for Bigger Pockets down here in Macon and I've helped a ton of out of state folks finds deals here. Feel free to reach out if you need some boots on the ground. I'm happy to give you my two cents and give you the lay of the land. Macon is a great market for Section 8 and there is a big need in this area, but you need to know where to look and what to steer clear of.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1y
Quote from @Cody Lekberg:
Pedro, I'm the Featured Agent for Bigger Pockets down here in Macon and I've helped a ton of out of state folks finds deals here. Feel free to reach out if you need some boots on the ground. I'm happy to give you my two cents and give you the lay of the land. Macon is a great market for Section 8 and there is a big need in this area, but you need to know where to look and what to steer clear of.
That would be great. We definitely need to connect. I will send you a message.
Blessings,
Shane
- Member since 2025 · 15 posts · 7 votes1y
Hi Shane, thank you for your post and your brilliant plan to help S8 and community. Congrats and best to luck to you.
Hi Mark, Thank you for your insight on S8. I am learning and would like to rent out to S8 as well. Could you further explain with example to help me understand of your finding on
- "Higher Cash Flow, Lower Appreciation: Generally, properties with Section 8 tenants will have higher gross incomes, cap rates, and cash flow. The trade-off is often lower property appreciation, due to the demographic and economic trends in lower-income areas."
I thought having S8, you are most likely accept the rate approved by HUD and that means are lower than non S8 tenant, is this not true? What to do if S8 tenant are no longer qualified for Hud payment. When do Hud stop payments? Can you give tips to negotiate with Hud for rent as comparable to traditional rent price?
Thank you in advance.
Katie
- Pike County GA · Member since 2024 · 45 posts · 17 votes1yI am no expert on this at all. However, I do know that here in Georgia we get the luxury of a detailed list of rental rates for properties according to Bedroom count and location. Different zip codes/areas warrant a different rental payment. Some high demand areas stand out as being a higher paying area and on the flip side of that some pay much less. The list for Georgia is put out by the Georgia Department of Community Affairs-Rental Assistance Division. I only invest here in Georgia so I cant really offer you any insight for other areas. I am fairly new to investing myself. I do know that if you can prove demand and comps for like rentals in the area of your rental investment property that rates can be appealed and adjusted accordingly (if approved). Also, you must have evidence that supports your rate proposal here in Georgia. I hope this at least offers a little direction..
Peace and Blessings,
Shane- Member since 2025 · 15 posts · 7 votes1y
Quote from @Shane Moore:
I am no expert on this at all. However, I do know that here in Georgia we get the luxury of a detailed list of rental rates for properties according to Bedroom count and location. Different zip codes/areas warrant a different rental payment. Some high demand areas stand out as being a higher paying area and on the flip side of that some pay much less. The list for Georgia is put out by the Georgia Department of Community Affairs-Rental Assistance Division. I only invest here in Georgia so I cant really offer you any insight for other areas. I am fairly new to investing myself. I do know that if you can prove demand and comps for like rentals in the area of your rental investment property that rates can be appealed and adjusted accordingly (if approved). Also, you must have evidence that supports your rate proposal here in Georgia. I hope this at least offers a little direction..
Peace and Blessings,
ShaneThank you Shane, yes I will do some demand and comps search
to support my rate proposal. Thank you for providing me a direction. Much of best luck to you and your S8 investment path. I will need to learn a lot from you.God bless,
Katie
- Investor · Member since 2020 · 32 posts · 33 votes1y
@Jay Hinrichs yeah I agree with you, there will definitely be some general "abuse" on the property from kids being kids. I meant moreso the big nightmare stories that everyone gets worried about where there are holes in walls and bigger issues. Wear and tear definitely happens, but its not as big of a deal when your tenant stays 10 years.
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Michael Goldberg:
@Jay Hinrichs yeah I agree with you, there will definitely be some general "abuse" on the property from kids being kids. I meant moreso the big nightmare stories that everyone gets worried about where there are holes in walls and bigger issues. Wear and tear definitely happens, but its not as big of a deal when your tenant stays 10 years.
I had one client ( and this is why many section 8 folks fail) his rental had kids in it.. the kids decided to use the oven door as a step ladder and broke it off.. tenant of course requests repair .. owner says no way U did.. tenant has no money to fix it.. Hud wont renew and boom tenant gone and house vacant.. its just those idiotic things that drive many crazy.. Keep in mind most landlords have no clue how life long renters live and they expect the home to look like or how they live in their home.
- Pike County GA · Member since 2024 · 45 posts · 17 votes1yI agree... I have done complete gut rehabs on all of mine thus far and strive to offer a nicer more modern home than most in the area who rent to section 8 tenants. After rehab I have new stainless refrigerator and stove put in place upon lease agreement. I want my tenants to be proud to call it home! It has nice amenities that many are not accustomed to receiving. This may backfire on me down the road but, my hope is to make them proud to live in one of the nicest homes in the neighborhood. So far I have ended up with mostly elderly tenants who don't really have any children. As long as I can continue to buy right, I plan to continue offering a better tenant experience if possible.
Thank you guys for all of the feedback. I really appreciate it! Learn some new insight every time I read through the posts.
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