I have a section 8 tenant. The FMR for my neighborhood is approximately $1000 which it turns out is uniform with the other houses around my unit. I am just saying $1000 to round it out and make it simple. The housing authority subtracts approximately $200 dollars from the $1000 and its called it a utility allowance. This drops the rent to $200 less then other comparable units in the neighborhood. I complained and the Housing Authority said that the utility allowance is statutory. I think statutory mean HUD take this allowance from all the landlord's in the United States. What I don't understand is why a lot of places in the United States some section 8 landlords recieve comprable and even I am reading a bit higher rents then surrounding non section 8 rents if they take this fee from everybody. Or are they lying to me about this fee being subtracted from all section 8 landlord's, or are they suppose to set the FMR as gross $200 higher. I cant figure it out please help me if you can!
Section 8 is administered differently in different municipalities. What you describe does not happen in my locale. We set our rent and if the full rent isn't covered by the housing authority, the tenant pays the difference. Some tenants get a utility allowance to help them pay utilities, but they manage that themselves and we don't see those monies.
understand what you're saying that they are managed differently. But what they are telling me is that all of the housing authorities in the United States have where there is A gross rent which isFMR and that includes your contract rent plus the rent allowance which together make your FMR.they are telling me that this is statutory. Statutory means that it is done the same all over the United States as set forth by hood
sorry I am using my tablet 2 posts and I am NOT used to that. But this statutory means everybody has this. And I don't understand if everybody has a utility allowance taking out of the rent they receive everybody's rent received would be Less then comparable non sec 8 rents surrounding
In my area the HUD FM rent is established as the same for a 3 county area. Generalizing, one county has a median size city, one county is largely suburban and one county is mostly rural & small towns. Same rent allowance is all three counties. I some parts of the 3 county area the HUD rent is maybe above market rent, some areas are just right and some are lower than market.
3 bedroom HUD rent here is around $1,000, but 2 bedroom rent is less than $850. We have many properties that exceed those rent levels and not just by a small amount. Just rented a 2 bedroom that is $950 PLUS utilities, obviously not Section 8. We've rented houses for as much as $2,050, again obviously not Section 8.
I'm sure that there are neighborhoods in your town where the HUD FMRs can work, but not in every neighborhood. Their FMR is the MEDIAN rent, so 50% of the rents in the area are HIGHER than the HUD FMR. About 90% of our rentals are rented at more than the HUD FMR, obviously not to Section * tenants.
Here it is against regulations for the Section 8 tenant to pay more than the HUD FMR. Besides that reg, the Section 8 tenants are not allowed to pay more than 40%, I think, of their income toward rent. The idea of both of those regs is that the rent must be affordable to the tenants budget and Section 8 will not allow their tenants to get into a situation where their finances are strapped by over paying rent.
@David Krulac Here it is against regulations for the Section 8 tenant to pay more than the HUD FMR. Besides that reg, the Section 8 tenants are not allowed to pay more than 40%, I think, of their income toward rent. The idea of both of those regs is that the rent must be affordable to the tenants budget and Section 8 will not allow their tenants to get into a situation where their finances are strapped by over paying rent.
Yes. The reason this works for us is because all of our properties are at or below the fair market rent determined by HUD. Our local housing authority administers the Section 8 program here and would not require the landlord to lower the rent to accommodate their client. They would just tell their client to look for a more affordable place. Most of our Section 8 tenants pay a portion of their rent and that portion can not exceed a certain percentage of their income. It was once 45%, later it changed 40%, and now it is 30% of the household's adjusted monthly income.
@John Harrison All administrators of the Housing Choice Voucher Program (commonly known as Section 8) must follow the HUD requirements. So that is your best source for information if you think your local office is misleading you.
Focus on establishing your rent within the HUD FMR guidelines and be clear in your rental agreement as to which utilities are included and which are the tenant's responsibility. Your unit either will be affordable for the Section 8 tenant or it won't be. You are under no obligation to accept less rent for your unit or to pay for utilities that you customarily do not pay.
The rent allowance and the utility allowance are separate issues and separate subsidies. It makes no sense to me what your PHA is telling you. You will be paid with the rent subsidy and utility companies will be paid with the utility subsidy either directly or via the tenant.
The unit must however meet Housing Quality Standards (HSQ) to be eligible to participate in the Section 8 program. Those standards are very basic and quite reasonable. This would also be a good time to re-read the contract you have with your local housing authority and the tenancy addendum regarding Section 8.
I misunderstood, when you said:
We set our rent and if the full rent isn't covered by the housing authority
I thought that meant your rent exceed the HUD FMR and the tenants paid you extra under the table. Now I get it. Thanks.
When all is said and done . The money that you recieve for rent is SUPPOSE to be comprable to the rent that non section 8 unites are priced at. I had challenged my housing authority because I had wriien over and over for months to get a letter from the Director of HUD and he agrees to that law. He told me if my housing authority was capping rents and reducing rents arbartrarly to report to the regional field office and he gave me a name and number og the person to report to. That person was completely uncooperative and non responsive. I even had to contact me senator to get him to answer. Its like there is nobody that can makle them abide by the law
HUD FMR are the MEDIAN rent are not by design and definition comparable to any rent that is in the top 50% of rents charged in your area.
HUD FMR are ONLY comparable to rents in the LOWER half of rents. If your rent is in the TOP 50% it will never be comparable.
Mr.Krusiac I uinterstand that the FMR is set at 50% but that is b uilt in once they set the FMR. I am going by their FMR what they set.I am saying the $1000 is the FMR they set and they are paying $200 under the FMR THEY set
I believe some of the things they are doing are illegal. just like lowering rents because of the sequester. The law states that Public housing landlords rents can not be capped or lowered because of shortfalls in the funding of the public housing Administrators. Now they can request you VOLUNTAIRLY lower or divert increases in order to help. (There is a reason for this law to lengthy to go into) The hat trick is getting them to capitulate to the law. I am going to try small claims
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