Seeking Advice: Renting to Section 8 Tenant with Low Income

[Damani Tilton]

Hey everyone; I’m a newer landlord and considering renting to a Section 8 tenant for the first time. I’d love to get some insight from more experienced investors.

Here’s the situation:

• I’m asking $1,400/month for rent

• The housing authority will pay $850

• The tenant’s portion would be $550

• The tenant’s reported income is only $1,500/month

I have some concerns about their ability to consistently cover their portion. If they fall behind, will it be particularly difficult to evict them given the Section 8 protections/process?

Also, are there any other considerations or red flags I should be aware of when working with Section 8 tenants? Any general advice on screening, dealing with housing authorities, or protecting myself contractually would be appreciated.

Thanks in advance!

[Dominic Mazzarella]

Quote from @Damani Tilton:

Hey everyone; I’m a newer landlord and considering renting to a Section 8 tenant for the first time. I’d love to get some insight from more experienced investors.

Here’s the situation:

• I’m asking $1,400/month for rent

• The housing authority will pay $850

• The tenant’s portion would be $550

• The tenant’s reported income is only $1,500/month

I have some concerns about their ability to consistently cover their portion. If they fall behind, will it be particularly difficult to evict them given the Section 8 protections/process?

Also, are there any other considerations or red flags I should be aware of when working with Section 8 tenants? Any general advice on screening, dealing with housing authorities, or protecting myself contractually would be appreciated.

Thanks in advance!

That tenant portion does seem a bit high relative to their income. $550 out of $1,500 is over a third of what they make, and that’s before accounting for food, utilities, and everything else. I’d definitely be cautious there. Even with Section 8 covering the bulk, if they fall behind on their part it can still become a headache for you.

Eviction with Section 8 isn’t impossible, but it does take longer and usually requires more documentation. I’d make sure your lease is tight, and that everything is in writing, especially around what happens if their portion is late.

Also, double-check how utilities are handled. If the tenant pays them separately, that’s another factor that can push their total housing costs too high and impact payment reliability. I’ve had good Section 8 tenants, but that income ratio would give me pause without some sort of supplemental income or strong payment history.