Sec 8 payment voucher

14 Replies

So I’m looking at a 2 bedroom in Ferguson it already has tenants in it. I won’t be renewing the current tenants lease. I want to put it on sec 8 doesn’t sec 8 have a standard payment amount for how much they will pay for based on how many bedrooms the house has and what kind of voucher the tenant has ? Saint Louis Missouri is where I invest. If anyone can chime in I’d be very grateful.

I’m looking at the Sec 8 payment standard and they say a 2 bedroom will pay 905. But my PM says they won’t pay that much ? Idk what to believe…

@Jeremiah M. I’m still pretty lost 70-90% of the market value ? I thought they used a payment standard based on how many bedrooms you have ?

I know most tenants carry a 2-3 bedroom voucher so if you have a 2 bedroom house they would pay what they say on the site..

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@Jeremiah M. But if I charge 1000$ and the tenant has a 2 bedroom voucher the max sec 8 will pay is 905 for a 2 bedroom the tenant can’t pay more it’s against the law.. sec 8 pays only so much and then the tenant has their portion.

@Steve Ehrman . Thank you this is what I use and sec 8 should pay the max based on how many bedrooms I have and the tenants voucher. My PM is telling me that I won’t get that amount but lower.. Are they misinformed ? They honestly have me confused about sec 8 and how the payment system works. Because my other tenant she has a 2 bedroom voucher and they give me 905 before anything gets deducted…

@Jermell Shavers the amount listed on the HUD website is typically the maximum amount that Section 8 will approve but that amount includes allowance for utilities. Now if you are paying all the utilities that might be the rate that they will pay, if the tenant pays the utilities the housing authority will use a worksheet to compute the estimated utility costs and the tenants income to come up with an approved rental amount.

I typically use $75 for electric, $75 for gas and $50 for water/sewer/garbage and am pretty close to what the Section 8 case worker comes back with, also once I know that number I also put in for a little more than that and let them come back with the maxim amount that will be approved.

Just my experience in dealing with Section 8 IN MY AREA, your local office may certainly operate differently.


@Mark Faustrum . Thank you. My PM keeps telling me that I won’t get much but they were wrong last time. Because my tenants pays 905 and they also pay utilities and I pay the sewer bill. I wonder if they will always max it out. Guess I’ll just have to buy the house and see.

@Jermell Shavers IF the tenant has enough income and at 30% of their income there is room to pay over the HUD listed amount the Section 8 Caseworker can/may allow a rental rate over and above the threshold. That's why for each person they, Section 8, has to do a calculation for each person on each property before they say yes or no from what I've experienced.

There is an investor on here that specializes on Section 8, her name is @Jennifer Donley. It seems I'm not able to tag her on here since she and I are not connected. Perhaps reach out to her and/or read some of her posts and you may get more definitive answers.

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Like Mark mentioned, the maximum rent amount also depends on the tenants income. They also look at how much rent goes for in your specific area. Like your county might have a $1,000 payment standard but if your house is in the worst part of town where rent is dirt cheap then they won’t allow the same rent amount as the nice area would approve for.