Investor · Hendersonville, NC · Member since 2016 · 138 posts · 71 votes
I have a multi-family under contract where long-term tenants are paying about 50% of Section 8 Fair Market Rents. Rents haven't been raised in years. Over time, I can raise rents gradually to minimize hardship and vacancies, but if they got Section 8 vouchers, I could basically double rents without necessarily raising the amount the tenant would have to pay.
If anyone has experience initiating the Section 8 process or steering a tenant through Section 8 approval, I would appreciate any guidance. How long does it take? What are the main qualifiers/disqualifiers? What else do I need to know?
(I do have one other Section 8 property where the tenant already had her voucher, so I understand that my property also has to be approved.)
Highly unlikely your present tenants would qualify and if they did it would take a long time as others have stated.
Your best option is to contact the welfare office and get approval for S8 while you have your present tenants. Once approved give notice of a rent increase to $950 for your tenants and let them leave. You can then get new welfare tenants at full market.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
8y
Pearce,
I have had a great experience with section 8. You can often find people that are already approved with a voucher. Then you just have to get your property inspected and approved. In my experience you loose 1 months rent getting started on the program.
Investor · Hendersonville, NC · Member since 2016 · 138 posts · 71 votes
8y
Thank you @John Underwood. I'm perfectly comfortable with Section 8 tenants.
My question is about helping/encouraging a stable, long-term tenant to apply for a Section 8 voucher, so I could get market rate rents without forcing them out. Let's say the tenant has been paying $500 for several years, but the Section 8 Fair Market Rent for that unit is $950. If they got a Section 8 voucher for the other $450, I could keep a good tenant and still cover my expenses.
Has anybody ever initiated that process with an existing tenant? Is that practical, or is that more trouble than it's worth?
Thank you @John Underwood. I'm perfectly comfortable with 'llSection 8 tenants.
My question is about helping/encouraging a stable, long-term tenant to apply for a Section 8 voucher, so I could get market rate rents without forcing them out. Let's say the tenant has been paying $500 for several years, but the Section 8 Fair Market Rent for that unit is $950. If they got a Section 8 voucher for the other $450, I could keep a good tenant and still cover my expenses.
Has anybody ever initiated that process with an existing tenant? Is that practical, or is that more trouble than it's worth?
Pearce, Yes am doing that now. Unfortunately their is a year plus wait list. I have one of my tenants on the list. I am giving her a sub market rate till she can get on Section 8. Once her name comes up I will get house inspected and approved.
Lexington, KY · Member since 2018 · 169 posts · 77 votes
8y
Have you contacted your local section 8 office? From what I understand they may not always pay the Fair Market Rent amount but can pay less. Maybe someone more familiar with Fair Market Rents will comment I may be mistaken.
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
8y
Pearce G. I had an inherited tenant get her voucher a few months after I bought the property. She said she waited for over 5 years. I’d call the housing authority and see what the waiting list is in your market but if they haven’t applied it’s probably too long.
Thank you @John Underwood. I'm perfectly comfortable with Section 8 tenants.
My question is about helping/encouraging a stable, long-term tenant to apply for a Section 8 voucher, so I could get market rate rents without forcing them out. Let's say the tenant has been paying $500 for several years, but the Section 8 Fair Market Rent for that unit is $950. If they got a Section 8 voucher for the other $450, I could keep a good tenant and still cover my expenses.
Has anybody ever initiated that process with an existing tenant? Is that practical, or is that more trouble than it's worth?
I don't know the situation in your market, but in many cities that offer Section 8, the agencies have so many applicants there is a very long wait time to be approved for Section 8. This can be months or even years. It's not uncommon for a city to have a wait list so long (say, 24-30 months or longer) that they stop accepting new applications.
If the wait list in your city is in a similar situation, it's probably not practical to go through the trouble to convince current non-Section8 tenants to apply. For many cities, you can visit the Housing Authority web site for that city to see the status of Section 8 voucher applications.
On the other hand, it would definitely be worth your while to start accepting new tenants with Section8 vouchers in hand. Not what you were asking, I know, but that's a more practical option.
Highly unlikely your present tenants would qualify and if they did it would take a long time as others have stated.
Your best option is to contact the welfare office and get approval for S8 while you have your present tenants. Once approved give notice of a rent increase to $950 for your tenants and let them leave. You can then get new welfare tenants at full market.