Cleveland Section 8 payments vs Available properties
Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes
Cleveland Section 8 payments vs Available properties
Most Popular Reply
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
3yQuote from @Stefano Grottoli:
Quote from @James Wise:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount.
Really? Because I sent them an e-mail and they sent me the link in the original post (https://www.cmha.net/housing/landlords/rent.php) that shows that amount. As I'm new to Section 8, just trying to understand how it actually works, versus what we see on social media :)
Lesson #1 - Nothing the government does makes sense and none of the employees have any idea what they are doing.
21 Replies
- 3yGreg ScottPro MemberRental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
When you say 4 of the 32 available properties, are you looking at only Section 8 properties? There must be more than 32 properties in your area. Section 8 properties are a different animal than tenants with Section 8 vouchers.
Remember, prospective tenants with vouchers can live anywhere. Most residents are going to look for the best value for their voucher. If they can find a gorgeous 3BR in a good location for $1550 nothing comes out of their pocket, why would they go to a crappy property for $1550.
Personally, I wouldn't buy if the deal does not make sense at market rate pricing. Government programs can change with the stroke of a pen, but the market moves more slowly. If you buy a deal that makes sense at market but then you decide to take Section 8 and rent it for more, that is icing on the cake.
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
@Stefano Grottoli all the $1550 means with CMHA is they will pay up to that amount within Cleveland city limits. A 3br home on the east side will be less per month vs a home on the west side.
- Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes3y
Quote from @Vadim F.:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
@Stefano Grottoli all the $1550 means with CMHA is they will pay up to that amount within Cleveland city limits. A 3br home on the east side will be less per month vs a home on the west side.
Thanks! I know that - but what I was thinking was simply: well, if the housing authority will pay $1,550 for a 3 bedroom, why would any landlord in the world list it for less? To me, that's a simple statement that says the demand is not that high. Not sure if I'm missing something.
- Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes3y
Quote from @Greg Scott:
When you say 4 of the 32 available properties, are you looking at only Section 8 properties? There must be more than 32 properties in your area. Section 8 properties are a different animal than tenants with Section 8 vouchers.
Remember, prospective tenants with vouchers can live anywhere. Most residents are going to look for the best value for their voucher. If they can find a gorgeous 3BR in a good location for $1550 nothing comes out of their pocket, why would they go to a crappy property for $1550.
Personally, I wouldn't buy if the deal does not make sense at market rate pricing. Government programs can change with the stroke of a pen, but the market moves more slowly. If you buy a deal that makes sense at market but then you decide to take Section 8 and rent it for more, that is icing on the cake.
Greg, that's a solid advice - run your numbers based on market price, not on Section 8. There's only 32 available because I selected 3 bedroom single family only in the Cleveland area. The website that I looked only lists properties that accept Section 8, hence why the limited number.
Quote from @Stefano Grottoli:
Quote from @Vadim F.:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
@Stefano Grottoli all the $1550 means with CMHA is they will pay up to that amount within Cleveland city limits. A 3br home on the east side will be less per month vs a home on the west side.
Thanks! I know that - but what I was thinking was simply: well, if the housing authority will pay $1,550 for a 3 bedroom, why would any landlord in the world list it for less? To me, that's a simple statement that says the demand is not that high. Not sure if I'm missing something.
Look at it from a perspective of even if your tenant is sec8, majority of the time they still have to pay 30% of the rent. On $1550mo that is almost $500mo plus utilites. Take into consideration that that Cleveland is one of the poorer areas in the country, a $100mo difference can be huge. So you as an owner, would you be willing to ask for less to have your property rented quicker and "lose" the extra $1200 or so per year or would you rather lose that $1200 per month because your property is sitting vacant.
In regards to demand, Cleveland is one of the top Sec8 markets out there.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes3y
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount.
- Investor · Hopedale, MA · Member since 2021 · 321 posts · 213 votes3y
are all the 32 listings 3bedroom units?
- Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes3y
Quote from @James Wise:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount.
Really? Because I sent them an e-mail and they sent me the link in the original post (https://www.cmha.net/housing/landlords/rent.php) that shows that amount. As I'm new to Section 8, just trying to understand how it actually works, versus what we see on social media :)
- Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes3y
- Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes3y
Quote from @Vadim F.:
Quote from @Stefano Grottoli:
Quote from @Vadim F.:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
@Stefano Grottoli all the $1550 means with CMHA is they will pay up to that amount within Cleveland city limits. A 3br home on the east side will be less per month vs a home on the west side.
Thanks! I know that - but what I was thinking was simply: well, if the housing authority will pay $1,550 for a 3 bedroom, why would any landlord in the world list it for less? To me, that's a simple statement that says the demand is not that high. Not sure if I'm missing something.
Look at it from a perspective of even if your tenant is sec8, majority of the time they still have to pay 30% of the rent. On $1550mo that is almost $500mo plus utilites. Take into consideration that that Cleveland is one of the poorer areas in the country, a $100mo difference can be huge. So you as an owner, would you be willing to ask for less to have your property rented quicker and "lose" the extra $1200 or so per year or would you rather lose that $1200 per month because your property is sitting vacant.
In regards to demand, Cleveland is one of the top Sec8 markets out there.
That makes a lot of sense! Thanks for your input!
- Investor · Hopedale, MA · Member since 2021 · 321 posts · 213 votes3y
Quote from @Stefano Grottoli:
I wonder if they're listed on there but have been occupied for years, by tenants who moved in when the fair rent was less?
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes3y
Quote from @Stefano Grottoli:
Quote from @James Wise:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount.
Really? Because I sent them an e-mail and they sent me the link in the original post (https://www.cmha.net/housing/landlords/rent.php) that shows that amount. As I'm new to Section 8, just trying to understand how it actually works, versus what we see on social media :)
Lesson #1 - Nothing the government does makes sense and none of the employees have any idea what they are doing.
- Real Estate Broker · Cleveland, OH · Member since 2015 · 255 posts · 248 votes3y
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Most 3 beds will fall around $1,200/mo. through section 8 in the Cleveland area. The $1,550 is the max they'd be willing to go to if that sub-market and neighborhood comps can support $1,550 plus.
- Cleveland, OH · Member since 2022 · 826 posts · 578 votes3y
Quote from @James Wise:
Quote from @Stefano Grottoli:
Quote from @James Wise:
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Section 8 demand in Cleveland is through the roof, but unfortunately they don't actually pay that amount.
Really? Because I sent them an e-mail and they sent me the link in the original post (https://www.cmha.net/housing/landlords/rent.php) that shows that amount. As I'm new to Section 8, just trying to understand how it actually works, versus what we see on social media :)
Lesson #1 - Nothing the government does makes sense and none of the employees have any idea what they are doing.
@James Wise Amen to that.
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
Ok so 1st get off the internet, waste of time 2ND, no demand for sec 8, (like I said get off the internet) MASSIVE demand. We PM 600 + doors of which about 450 are with various govt programs. I can place and ad, within 30 seconds our phone will start to ring, Sec 8 and other programs are huge in the Cleveland markets. We get dozens of calls weekly, UNLIMITED tenants for sec 8. Also 3 brs will get anywhere from 1k- 1600 depending on where, YES they pay MORE than cash tenants. Many landlords will not take sec 8 as 99% have no clue what they are doing. Us we are experts with all govt programs, and I will take a govt program over a cash tenant any day. They pay more and guaranteed rent
Good luck
Quote from @Stefano Grottoli:
Hi!
I'm looking to start investing in Cleveland, and was looking at some 3 bedroom properties. The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority. However, when you look at the Affordable Housing website, only 4 out of 32 available properties that accepts voucher are listed by $1,550 or more.
Is that maybe a red flag that there's no demand for Section 8 in Cleveland? Why would any landlord list their properties for LESS than what the government is willing to pay? I'm just trying to understand the market in the area a little bit better. This will be my first rental property and I want to do the right thing.
Thanks!
1st , there is HUGE demand for all the govt programs, I get 20 calls a week, we have 100s of govt program tenants. 2nd, govt programs pay more than cash tenants. I just got 800 for a 1 br in EAST Cleveland, I have my inspection today. Cash is only 650
All the best
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes1yOrhi,
Quote from @Orhi Tahi:
@Bob S. do you have a PM recommendations for section 8 in Cleveland ?Orhi
You may wanna read the thread below before taking a Property Management recommendation from Bob.
Who is Bob Stevens AKA Bob Prisco and what's his involvement in Cleveland? - 1ySamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
Quote from @Orhi Tahi:
@Bob S. do you have a PM recommendations for section 8 in Cleveland ?Orhi
I'd be glad to send you my top choices for PM in the Cleveland areas.
Reafco - Samuel Diouf528 Reviews - Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes1y
Hi, yes, a lot of people (clients) invest in Ohio and accept Section 8. Please reach out if you have any questions. Thanks!
Join the conversationCreate a free account to reply, vote on answers and follow this thread.