Toronto, Ontario · Member since 2014 · 95 posts · 23 votes
Hello members !
I have a 3 BDR one bath house in Maple Heights Ohio that I am considering renting to section 8 tenant .CMHA chart for the house zip code showing a max rent of around $2000 for 3 bedroom.
I know market rent of my house is approximately 1300-1400 $
I am adding efrigerator and oven.
The house is older but in decent shape. Can someone who is expirienc with section 8 estimate what would get ?
Investor · Midwest · Member since 2019 · 339 posts · 226 votes
1y
Itay,
In my experience Section 8 is based on the persons voucher/ situation. Although max rent maybe $2k they may only give $1k on the tenant's behalf, the tenant would pay the difference in your case $300-$400 it depends on their specific case.
I've had properties listed for more than what section 8 wanted to pay, we had to provide comps that their estimate was wrong / out of date for similar apartments.
I would contact the housing authority who manages the S8 program in your area to get an accurate ideal of how they determine what they'll pay on the tenant's behalf. I would also ask for the inspection checklist so you can ensure your place will pass inspection.
Investor · Midwest · Member since 2019 · 339 posts · 226 votes
1y
Itay,
In my experience Section 8 is based on the persons voucher/ situation. Although max rent maybe $2k they may only give $1k on the tenant's behalf, the tenant would pay the difference in your case $300-$400 it depends on their specific case.
I've had properties listed for more than what section 8 wanted to pay, we had to provide comps that their estimate was wrong / out of date for similar apartments.
I would contact the housing authority who manages the S8 program in your area to get an accurate ideal of how they determine what they'll pay on the tenant's behalf. I would also ask for the inspection checklist so you can ensure your place will pass inspection.
Rental Property Investor · Elmira NY · Member since 2023 · 143 posts · 143 votes
1y
In my experience in Upstate NY with Section 8 I get exactly what is FMR as by the Huduser.gov website for my county. Right now it's $1560 and I just got new leases signed for $1,550 which is what I thought the site said last time I looked but I must have read wrong.
It looks like for Cuyahoga County a 3 bedroom is $1,434.
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 936 votes
1y
There are 2 drivers for what you will get in Section 8 rent:
1. The property's market value in rent. This is what is governed by FMR. You are very likely to get in the range of $1,300-$1,400 if that is the market. The $2,000 max FMR is just what it says - the max regardless of the market. You can appeal it, and they will get a BPO for the property.
2. The tenant's finances determine what they can afford. Your property might be legitimately worth $1,500 and the tenant qualifies for $500 in assistance, but can only afford to pay another $500 for a total of $1,000, they won't approve $1,500.
Unfortunately, you can usually only find both of these out when you have an application and lease signed from a prospective tenant and submit it to the local housing authority. This is one of the cumbersome parts of Section 8.
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 936 votes
1y
You would know what a tenant's voucher is worth for their current property as of the time it was issued. That doesn't mean it just transfers right over to another property.
The tenant's income may have changed or possibly more or fewer family members move along. The property could be more or less efficient with utilities. It may or may not have central air, deck, porch, etc. The landlord could provide appliances and you do not or vice versa.
It probably won't change radically if the tenants' income and family structure haven't changed, but probably won't be the same unless the properties are very similar.