Updated over 5 years ago on . Most recent reply
Section 8 tenant analysis
So I am trying to help out a single mom not to lose her section 8 but at the same time, I dont want to lose money.
She makes only $13,824 A YEAR [or at least thats what she reported on smartmove.com] The rent is $1750 plus utilities, section 8 will cover $1310, she will pay $305 and then she said her boyfriend will help with the other $135 [which I am not sure is allowed but we are seeing]. My think is if she is only making $1152 a month, has a car payment, car insurance plus food & then all this, do you think I should rent to her? I know that section 8 is sure money but its only a portion of it. Her credit is also only 549 but she has been paying her car faithfully since November [I see this on the credit report]. She has a collection debt of $3,017
As much as I want to help her & feel section 8 is a 'sure thing' I am not sure... Thoughts? ideas? I am requiring 2 security deposits plus 1st months rent
Most Popular Reply
You say you want to help her out, so can we assume you run a charity? It's either a business or a charity. Pick. Make decisions based on which one it is.
If her portion is $305, that is ~26% of her income. That's not bad at all. Many people are well over 30% and unlike those people, you have $1310 a month somewhat guaranteed.
The boyfriend paying the difference is not allowed, but commonly done. I personally don't want to commit illegal acts where my tenants could easily blackmail me or get me in trouble with the law. However, many other people are willing to take this risk.