How to determine rents for Section 8 properties

How to determine rents for Section 8 properties

Member since 2022 · 5 posts · 0 votes

Hi All, I have an offer accepted on a multi-family home that I will house hack. I want to rent one of the units to a section 8 tenant. The average rent in the area I am buying in is around $1000-1100 / month. I know that HUD pays $1530 for a three-bed unit in the city I am buying in. The thing I am confused about is if the average rents in my area are lower than what HUD will pay for a three-bed unit, how do I determine what the rent should be? I know HUD pays 70% of the rent for the tenants and the tenants must cover the remaining 30%. I also know voucher amounts vary from person to person. I want to get the maximum amount of rent for my unit but I also want it to make sense and don't understand this process. If anyone has experience with this, I would greatly appreciate some help. This will be my first rental property so I am completely new to this! Thank you!!!

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  • Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    3y
    Section 8 will pay 40% of the median rent for your small fair market area.
    https://www.huduser.gov/portal...

    Keep in mind that this is the maximum rent if all utilities and appliances are included.
  • Member since 2022 · 5 posts · 0 votes
    3y

    Thank you! I have looked up the fair market rents using the link you have provided. :) I appreciate your help!

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Jenna Kelley:

    You determine the rent rate for Section 8 the same as you would if it weren't Section 8. You shouldn't charge extra.

    The DIY Landlord Book4.7248 Reviews
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