Section8 Investors - Explain This

General Real Estate Investing
5yFollow

Section8 Investors - Explain This

Mario Am
Specialist · Nashville, TN · Member since 2019 · 187 posts · 83 votes

Hello guys,
So I have a property I want to rent it to a section8, rent will be 900$ a month, she gave me her RTA packet and the TNQ rent burden worksheet which I have attached.

However, it says that that the "Maximum Subsidy" is 134$, does this mean that Section8 will only pay 134$ of the rent?! I was alway told that they pay most of the rent if not all of it!! What is more confusing that she is telling that last rental she had the rent was 900 and Section8 paid 825$ and she only paid 75$, how does it make sense now that the paper says 134$?!
I would appreciate if someone can clear the confusion, thanks in advance!

Kind Regards,

Mario

0Reply
29 views

Most Popular Reply

Julio Garcia
Rental Property Investor · Modesto/Stockton/Merced, CA · Member since 2020 · 456 posts · 214 votes
5y

Mario, she'll pay the $134, Housing authority will cover the rest. so long as you complete the paperwork appropriately and send it back. 

1Reply
See this reply in the discussion

4 Replies

Jump to latestLatest
  • Julio Garcia
    Rental Property Investor · Modesto/Stockton/Merced, CA · Member since 2020 · 456 posts · 214 votes
    5y

    Mario, she'll pay the $134, Housing authority will cover the rest. so long as you complete the paperwork appropriately and send it back. 

    1Reply
  • Mario Am
    OP
    Specialist · Nashville, TN · Member since 2019 · 187 posts · 83 votes
    5y
    Originally posted by @Julio Garcia:

    Mario, she'll pay the $134, Housing authority will cover the rest. so long as you complete the paperwork appropriately and send it back. 

    How does that makes sense? It says estimated Tenant payment (line 3) is 750$
    and "Maximum amount that MHA may pay to the landlord" is 134$, doesn't sound like that is the tenant portion

    0Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    5y

    @Mario Am  The way I read that, the maximum amount the Housing Authority will pay you (the landlord) is $134.  ($134 is definitely not the tenant's portion the way that is written.)

    There's more info in this document (and an example on page 22): Memphis Housing Authority: Landlord Guide

    Lastly, just so you know, the Housing Authority typically does an annual re-evaluation of their program participants.  So, it's possible they paid more towards this applicant's rent in the past (assuming she's telling the truth), but something changed (i.e. her income, family composition, etc) and now they're paying less.  Point is, their past payment amount is no guarantee of their future payment amount, in my experience.  

    I have one that the amount changes every year.  Not the total amount necessarily (unless I request a rent increase), but just the portion of how much the Housing Authority pays vs how much the tenant pays towards the total rent.  Just FYI.

    0Reply
  • Zachary Ray
    Investor · Tampa, FL · Member since 2017 · 589 posts · 251 votes
    5y

    Reach out to their caseworker and see if it may have been a typo or what not. Get answers from the housing authority on this. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free