Seeking Advice: Renting to Section 8 Tenant with Low Income
Rental Property Investor · Metro Detroit · Member since 2021 · 11 posts · 10 votes
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!
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.
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.
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.
Thanks for the input David, I really appreciate your perspective. My hesitation definitely stems from the fact that the housing authority is only covering the rent, not the utilities. Once you factor those in, the tenant’s total monthly housing cost could be close to 50% of their income, which is what’s giving me pause.
I’ve used Apartments.com’s auto-generated leases in the past, which seem fairly thorough, but I’ll make sure this one explicitly outlines what happens in the event of nonpayment on the tenant’s part. Definitely want everything as clear and documented as possible going into it.
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!
@James Wise "Incredibly low quality people" feels a bit extreme haha; but I do appreciate you sharing your perspective. The unit is in a B+ neighborhood, and I do have a couple of other interested tenants, but they’d be moving in about a month later, so I’d be forgoing $1,400 in rent by waiting.
The Section 8 applicants are actually an older married couple who’ve lived in the neighborhood for the past 10 years in their current apartment, so I’d expect them to be long-term tenants. That said, their tenant portion would nearly double if they move into my unit, which is definitely something I’m factoring in as I weigh stability vs. payment risk
@James Wise "Incredibly low quality people" feels a bit extreme haha; but I do appreciate you sharing your perspective. The unit is in a B+ neighborhood, and I do have a couple of other interested tenants, but they’d be moving in about a month later, so I’d be forgoing $1,400 in rent by waiting.
The Section 8 applicants are actually an older married couple who’ve lived in the neighborhood for the past 10 years in their current apartment, so I’d expect them to be long-term tenants. That said, their tenant portion would nearly double if they move into my unit, which is definitely something I’m factoring in as I weigh stability vs. payment risk
If you think me referring to Section 8ers as low quality people is extreme, you're in for a big gut punch in this game brother. By and large, your typical Section 8er is a complete savage.
@Damani Tilton I would definitely disagree with the sentiment that Section 8 tenants are "low quality people." A large amount of section 8 tenants are elderly. Obviously it can be area dependent but I wouldn't discount Section 8 tenants at all.
@Damani Tilton I would definitely disagree with the sentiment that Section 8 tenants are "low quality people." A large amount of section 8 tenants are elderly. Obviously it can be area dependent but I wouldn't discount Section 8 tenants at all.
You've gotta be drunk. Most Section 8 tenants are animals.
@Michael Martin Agreed, I am not writing them off because they receive section 8 vouchers. I just want to make sure they'll be able to pay their portion.