Who Pays the Landlord for Section 8 Tenants

Who Pays the Landlord for Section 8 Tenants

Arlington, TX · Member since 2018 · 82 posts · 47 votes

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

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  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y

    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.) 

  • Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    6y

    You're paid by the two parties - HUD for their portion, and the tenant for theirs.

  • Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
    6y

    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.

  • Rental Property Investor · Richmond, VA · Member since 2014 · 100 posts · 50 votes
    6y

    @Alex Nelson

    Like everyone says, a portion comes from the government and the rest comes from the tenant. If the tenant has no income, the government pays all of the rent.

  • David NilesBusiness Member
    Property Manager · DeLand FL · Member since 2012 · 860 posts · 243 votes
    6y

    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.

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