Saint Cloud, MN · Member since 2017 · 31 posts · 3 votes
Working on getting my SFH in St.Cloud MN up to speed and rented out. seeing if anybody has had good/bad experience with section 8. Been told to avoid it at all cost, and others have told me do it just make sure to get a nice big damage deposit.
House i'll be renting out will be in the the middle/lower income neighborhood, blue color family.
3 bedroom, 1 bath, fenced in back yard, 1 garage shooting for $1,200 a month (I'll pay water/garbage)
Plan to manage it myself since this is my only one, and its close by where I live.
I have one property with a section 8 renter. What is not commonly known is that some section 8 applicants work, but just have an income below what is needed to support their family. My section 8 tenant gets about 25% of her rent paid for by HUD. She is a great tenant.
I screen her just like any other applicant. The prior landlord, who I know a little bit, told me she was a good tenant, and she had been there over 4 years. Just check them out.
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
8y
@Patrick C. I would generally save Section 8 for low-income areas unless of course, you are in Minneapolis which requires you to accept it. You will need to find out the max voucher amount for a 3 bed in your area. If it's below $1200 then you really have nothing to consider, unless of course, you want to lower your rent.
Rental Property Investor · MN · Member since 2015 · 186 posts · 149 votes
8y
I've had Section 8 tenants once, never again. Showed up nicely dressed, nice car, with good credit score (husband), and no criminal record. I asked for a higher security deposit. Long story short, that security deposit covered 1/3 of the damages to the property and appliances.
Flipper/Rehabber · Minneapolis, MN · Member since 2016 · 1k+ posts · 1k+ votes
8y
I agree with @Account Closed mentioned Mpls' new ordinance which requires landlords to accept Section 8. That is correct however I think you could setup your rental criteria so anyone who would receive housing assistance would not qualify.
Minneapolis, MN · Member since 2017 · 353 posts · 223 votes
8y
I was thinking about it on one single family home I own but have not done it yet. It is currently a 3BR and the voucher allowed for my city (per HUD) is $300/mo higher than I think I would normally be able to get for it. Every time I rent a place in that city, I have people asking about section 8 even though it specifically states no section 8 in my ads. I don't believe my city has many section 8 rentals and it is a desireable area so I may consider it if I were to have a vacancy.
The only reasons I would consider it on this home is because it is not fully updated, I think there may be a shortage of options for people who may want to get into the city, and I think it would be possible to get more in rent this way.
I wouldn't consider it on my properties otherwise as I have not had a problem placing good tenants in the past.
I have one property with a section 8 renter. What is not commonly known is that some section 8 applicants work, but just have an income below what is needed to support their family. My section 8 tenant gets about 25% of her rent paid for by HUD. She is a great tenant.
I screen her just like any other applicant. The prior landlord, who I know a little bit, told me she was a good tenant, and she had been there over 4 years. Just check them out.
Real Estate Broker · Provo, UT · Member since 2013 · 689 posts · 511 votes
8y
I've had extensive experience with sec8. I don't love it and I try to avoid it, but in many cases that is/was the only way to get a property to perform. Most of mine were in low income areas, however I did have 1 in Vegas a couple years ago that paid $1300 (which was the market rent) plus $150 for utilities, and it was in a fairly decent area.
Given the option to get the same money on cash or sec8, I would go for cash. Less headaches, and cash tenants have always been better to deal with.
Real Estate Broker · Provo, UT · Member since 2013 · 689 posts · 511 votes
8y
@Patrick C. P.S. Before you go down the sec8 road, you should chat with at least 1 local property manager about their experience with the local sec8 office.
The rules and regulations are similar across the US, but the actual benefits for a tenant can vary slightly based upon county contributions, non profits, etc... Some sec8 offices / case workers are easy going & cool to work with, others totally suck and are total brain damage.
Also, the landlord / owners take on some decent liability with sec8.
Not saying it's either good or bad because each situation is unique - but just make sure you know what you're getting in to.
Property Manager · Minneapolis, MN · Member since 2014 · 380 posts · 167 votes
8y
I am not going to comment either way on if it is a good program or not.
In Minneapolis it is going to be mandatory in May. Hopefully not followed by rent control in the future.
Does anyone know the limits for a studio, one and 2 bedroom you need to at to be above the threshold? I have asked a lot of commercial brokers already, but no one so far has had a straight forward answer.
Rental Property Investor · San Jose, CA · Member since 2015 · 401 posts · 221 votes
8y
This is a generalization, and just what I observed. There are two type of section 8 tenants.
- First type know the value of the housing voucher, and appreciate it. They tend to be responsible & keep the property in good shape as they don’t want to lose the voucher. Some also have side jobs, earning cash income. I have heard about section 8 tenants that put their own time and money into fixing up fence, landscape .... for the landlord. (In San Jose, the market is tight and having a voucher doesn’t guarantee a rental)
- Second type are the entitlement group. You can detect the entitlement attitude when you talk to them. I have had a section 8 tenant complains that it’s unacceptable that the government didn’t allow her 5 years old daughter to have her own bedroom and has to share with her 7 years old sister. (her housing voucher was paying over 3K a month). This group mostly doesn’t work, and is not responsible, so they tent to ask for lower security deposit & have trouble coming up with money to pay their share of rent. Avoid these group.
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
8y
@Michael Tempel have you checked with the county? In Ramsey County if the loandord pays utilities the numbers are:
Studio 711
1bed 864
2bed 1089
There are deductions from these numbers if the landlord does not pay the utilities and there’s a chart on page 14 of this attachment detailing all of the unit charges and utility deductions http://www.stpha.org/images/section8/S8LLhandbook.pdf
A quick search did not pull up Hennepin County’s numbers however I just requested a copy of them from their website PM me your email and I’ll send it to you when I get it.