Updated almost 7 years ago on . Most recent reply
Offering Section 8 Housing
We have found a property located in a depressed area (Flint Mi.) the property seems to be a great candidate for section 8 however we have no experience in this area of the business.
We have a good number of other units (not in Flint) and have learned many lessons the hard way through the years. We did locate the HUD sight which determines fair market rents. If this sight is a indication of what HUD will pay for the 3bd 1bath home per month then property looks like a homerun.
Please help it all seems to good to be true.
What are the guidelines and draw backs to this class of investing?
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- Property Manager
- Virginia Beach, VA
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@Lavern Keerich - Be careful about getting too excited about the HUD budgets you see. These are the budgets for housing plus utilities. Back out $250-300 from what you see to find where the rent ranges really are. The rent amount has to be both REASONABLE based on similar non-SEC 8 rental comps, and AFFORDABLE for the SEC 8 tenant you choose. I wrote a blog that includes details on what defines reasonable and affordable and gives you some tips on the program if you want to check it out. Just click on my profile and you will find it.
- Patti Robertson
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