Who Pays the Landlord for Section 8 Tenants

5 Replies

Hi BP,

I'm in the process of renovating my first investment property. It is a duplex in Arlington TX that i am currently living in and have almost finished with renovations on the second unit. I am considering renting the units out to section 8 tenants. I've been doing some research into this and i keep seeing that tenants are required to pay 30% of their gross income towards the rent and the rest is covered by HUD. my questions is, who is actually responsible for paying the rent to you? Do you get one check from HUD and another check from the tenant? Does the tenant make payments to HUD and then they send you one check for the full amount? How does this work?

Thank you!
-Alex

If the tenant is required to pay a portion of the rent, then that portion will be paid by the tenant directly to the owner (or property manager if there is one). And yes, the Housing Authority cuts a separate check for their portion.

(Note that it is possible for a tenant to have their rent covered 100% by the Housing Authority because I actually had a tenant like that. So in that situation, you only get one check.) 

Yes, you will receive 2 checks unless section 8 covers the entire rent which is possible in some cases, but usually, the tenant is responsible for some portion of the rent even it's like 40 dollars.

I would also make sure you are familiar with all their requirements and inspections. Sometimes no matter what we repair, they always like to find something new on the yearly inspections.