need help, section 8 and rent to own

[Lynnette E.]

I need some help with someone who is an expert in this area.

I have a few rentals that are taking applications now.  One lady has a section 8 voucher for $940.  I have a 3 bedroom house for $950 and I said I could work with her, if the house qualifies as it is...but I do not know if it will as its a 1902 house.  I have another house that is 5 bedrooms and $1100 a month.  It is more close to qualifying, maybe.

So that lady I told I could consider her for the $940 house insist that she can use her voucher and pay the difference for the $1100 house because it has more bedrooms.  Is this correct for the section 8 voucher program?  I always thought that it was a no side deal type of a program.  Lady says she has done it many times as she has 5 kids and likes more bedrooms.

Next question.  She also wants to do rent to own on the house using the section 8 voucher.  I don't think I want to sell, just fixed it up as a long term rental, but still want to know if this is even legal?  I am guessing no, but want to know for sure.

[Patti Robertson]

You can NOT have an agreement that the tenant pays any amount outside of their voucher. This is a violation of the contract both the landlord and tenant have with HUD. While it would be legal to give a SEC 8 tenant a rent to own option, why would you? Most people collected a hearty option fee for the restriction that option places upon the landlord during the option period. It his highly unlikly a voucher holder would have enough cash to make that worth your while. Also, an option agreement is generally 2 to 5 years in length and coordinates with the lease term. HUD dictates that your first lease term with a voucher holder must be 12 months. Stick to a regular lease and screen this tenant as you would any other. Believe only what you can confirm. This one sounds like a big talker.