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General Landlording & Rental Properties

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Austin Kinchen
  • Rental Property Investor
  • Baton Rouge, LA
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Section 8 Tenant - Rent Difference

Austin Kinchen
  • Rental Property Investor
  • Baton Rouge, LA
Posted Jan 22 2022, 12:41

I have an existing tenant (inherited) that utilizes the Section 8 program, and I have had a great experience to date with the program/tenant/housing authority. I currently have a vacant 3 bedroom house I am looking to fill, and through the process I have had a few other Section 8 applicants apply. I am still screening them using my standards, but I have run into a bit of a problem and can not find an answer. 

My unit is listed a $1,000 a month, and one applicant has a voucher for $775 (3 bedroom according to her). She said she would cover the difference, but that we would have to put the rent down on the voucher as $775 and then have a notary sign a document saying she will pay the additional $225 each month. I reached out to my contact at the Lafayette Housing Authority (Louisiana), and she told me that charging my tenant anything over their voucher was considered fraud. However their website states, "A housing subsidy is paid to the landlord directly by LHA on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program." Now I am really confused. 

My question is, what is the correct and legal way to go about this? If there is not a way, I do not want to string the applicant along, and I will let her know. However, if it is possible to do this compliantly, then I would like to pursue it. 

Any help is appreciated since this would be my first time placing a Section 8 tenant. 

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