Sec 8 voucher amount

8 Replies

Hey guys, so I was wondering how this works exactly.  Here in Honolulu county fair market rent according to hud website is $2682 for a 3 bd.  In Honolulu city I can see a 3 bd going for this much but not in other cities on Oahu, but Honolulu county accounts for the whole island.  So can I advertise and rent a 3bd/1bth for $2682 when current rents in that particular neighborhood rents for $1500-1800?  Once I advertised for $1800 and had an sec 8 applicant say that they had a voucher for $2100 and would give me the full $2100 voucher if they get the place.  I did not pick them so I don't know if this would have worked or not.  

You can advertise whatever rent amount you want you might not get any calls if the rent amount is too high. How many calls did you get when you had it advertised for $2,682.00? 

Section 8 pays a little more in rent than the normal market. In Wisconsin, there are Milwaukee County Section 8 and City of Milwaukee Section 8, the County pays more than the City Section 8.  

I good advertising trick is to place multiple ads at different price points and when prospects call ask what rent amount they seen online. You would have to honor the lower amount if they called for that amount. 

Around here, section 8 is just under market rent for recently updated SFR's. If you have a lower end home that needs updates but overall is safe and clean, section 8 might get you more prospects at market rate vs the prospect of you having to discount rent to attract non subsidized tenants. If you have houses that tend to be nicer than the competition, then you will get flooded with section 8 applicants but also have no problem attracting quality non section 8 applicants that are willing to pay just a bit more.

Regarding the full voucher amount...in my area, that means you rent to them all bills paid.  I would never do all bills paid so they have set amounts you can deduct for each service.  Water, gas for heat, gas for cooking, gas for hot water heater, same for electric etc.  It is very detailed and you can get a breakdown from the applicants paperwork.  If you were not going to provide utilities, then that $2100 would likely come down to $1700 or so.

You would have to confirm this with your area as I don't know the details of Hawaii's program.  I am just operating under the assumption they are all pretty similar.

I have not done section 8 yet and don't see doing it except as a last case scenario.  Some people have great luck with it though.

For anyone interested in Section 8 I would recommend "The Section 8 Bible".  Tones of great advice, including how they handle utilities.

@Michael Henry   I have not tried listing if for the full amount that is why I am asking,  I get the impression that sec 8 tenants don't really care how much the price is as long as their voucher covers the cost or rent.  As for listing it in several different places, I think that is a good idea thanks.  I usually just list on craigslist and get 10-15 calls in the first day.  What other places do you advertise?

@Chris Simmons  It is like that here in Hawaii too.  The $2100 is without utilities, with utilities is $2400

@Bob E.   thanks for the tip will look that up.  

Vera property management advertise on the following website: 

Zillow.com 

Hotpads.com 

Local.com 

Oodle.com 

Trulia.com

Vast.com 

Lycos.com 

facebook.com

Twitter.com 

Some of the sites on the top export your ad to some of the other web sites listed. 

Originally posted by @Royce Talbo :

Hey guys, so I was wondering how this works exactly.  Here in Honolulu county fair market rent according to hud website is $2682 for a 3 bd.  In Honolulu city I can see a 3 bd going for this much but not in other cities on Oahu, but Honolulu county accounts for the whole island.  So can I advertise and rent a 3bd/1bth for $2682 when current rents in that particular neighborhood rents for $1500-1800?  Once I advertised for $1800 and had an sec 8 applicant say that they had a voucher for $2100 and would give me the full $2100 voucher if they get the place.  I did not pick them so I don't know if this would have worked or not.  

So the short answer to your question is: It Depends. As some of the other folks here have noted, that $2682 also takes into account utilities, so if they're not included, your rent amount will go down. Also, PHAs have the ability to lower what their willing to pay for rentals in certain areas of their territory, if they don't believe rentals in that area are worth as much as their overall cap allows, ie if the market rate for a city is $1000, but one bad neighborhood has a market rate of $800, they have the ability to not approve $1000 rentals in that neighborhood as its above market rate. The larger the PHA, the more likely this is to be the case, as the program is not designed to pay over market rate for rentals, though occasionally it works out that way. Lastly, no section 8 voucher is for a set amount. They are issued by family/bedroom size and that corresponds with the FMR for your area, so even if the tenant says they have a guaranteed amount, they do not. It all comes back to whether the housing authority approves whatever you're charging as reasonable for your neighborhood and affordable for the tenant once utilities are included in the equation.

@Michael Henry   thanks I forgot all about hotpads,  never used zillow or trulia because I feel they are not reliable/accurate. besides facebook and twitter the others I never heard of. I will check them out thanks again Michael.

@Bradley Bogdan  Thank you this is exactly the answer I was looking for.

In my area GoSection8.com shows market rent ranges..That might help..Good luck!

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