what is the process to get a property section 8 approved?

Question

Hello I am still new to the investing world, so any advice would be helpful.

I'm considering a purchase to use as section 8 rentals. It does not already have voucher in place. What is the process to get section 8 rentals approved?

Any cautions or red flags I need to watch out for?

Does this also work with duplexes?

Do you feel this would be a good way to rent properties?

Thank you very much!

Dumitru Anton · Answer

Section 8/HUD-VASH (section 8 for veterans) is a Federal program, but is very "local" in administration/implementation.

Like others said, you want to qualify the tenant as any other tenant. you are looking for long-term.

check gosection8 for your market.

hud/hcv may have the FMR (fair market value) for your zipcode/number of bedrooms. (google search)

understand you CANNOT ask extra rent beside the approved amount, and sometimes the voucher may include utilities which means the $1,400 on the voucher may be 250 for utilities and 1,150 for tenant portion + hud.

also depending on tenants changing financials and family changes, the % amount paid by hud and tenant may change over time.

i would give a call to local office and also find fellow landlords in the area already working with section8 to network with.

you want nice,clean, durable but not very base level. section 8 tenants usually have choices so DO NOT BE A SLUMLORD.

you are a nice professional provider of quality home solutions for nice tenants!

good luck!

Ned Carey · Answer

@Andrew Nelsonwhat @Gail Kaitschuck said is true in Baltimore also. A property does not get inspected until an applicant has selected your property. Then you get an inspection. Then you sign a lease and negotiate a rent  amount.

While section 8 is a federal program it is administered at the local level so different areas have slightly different rules. Some areas actually pay above market rent, some pay below.

Gail K. · Answer

In my neck of the woods (Richmond county Georgia) one has to have an applicant with a voucher interested in the place first before the initial inspection will be scheduled. Around here that is often a six to eight week wait since these inspectors are also doing yearly inspections on approved rentals.

Call your local Housing Authority and ask about the inspection schedule.

Gail

Les Jean-Pierre · Answer

I live in NYC but they have to come out to your place and inspect it. You have to fill out some forms. Because I have an older building, it took more time but once you are in the system you are ok. Here you can get your payments from Section 8 direct deposits. Word of caution in that they do annual inspections that depending on the inspector can be ridiculous and you can't raise the rent that much.

Dumitru Anton · Answer

calling @Bradley Bogdan and @Marcia Maynard , our resident Section8 and HUD-VASH experts:

a search on BP would also reveal quite a lot....

Dumitru Anton · Answer

just remembered a few other stuff:

-the local HUD/section 8 may have classes for vendors/owners/landlords; may also have a website with all documents/criterias posted

-may have excellence programs

-inspection: will be more through if children, especially under 6 are in the house.

-inspection: you or a trusted handyman be there! a misunderstanding cost me one month of headaches for me, tenant and i have one abatement (hud not paying rent to owner because of list of repairs not taken care of) on my record. sometime the inspectors let you do small repairs/adjustments on the fly. understand that the vast majority of inspectors are not there to "get you": are there to make sure there is no danger/slumlording happening.

Andrew Nelson · Answer

Thank you everyone!

what is the process to get a property section 8 approved?

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