What do I need in my appartments to get Fair Market Rents for Section 8.

Question

I have a new four family house that I'm currently rehabbing. I have a general idea of what I plan on putting in. But I thought it would be a good idea to establish a baseline for FMR criteria for apartments in my area needed for section 8 Housing.

Example, do I need stainless steel appliances? How about a dish washer?  What about hardwood floors, and granite countertops. Obviously these are nice to haves. But would I still be able to get FMR with just laminant if the property was clean?

Thanks as always!

Brad Friesen · Answer

You definitely don't need to install granite countertops for Section 8 rentals. Having said that, be sure to check out what your competition has for amenities. If all your rental comps have granite countertops in your neighborhood, then you may actually need to install granite.

Be sure to check out the Section 8 landlord's guide for Massachusetts. http://www.massresources.org/section8-landlords-guide.html

Joel Owens · Answer

First you need to know what the local section 8 housing agency is paying out for the type of property you have in your area.

Voucher averages might be higher, the same, or lower than what you could get renting to a regular tenant.

Talk to local investors that deal with section 8 there and see how the agency performs on payments, not screwing things up, and if the case managers or on point or lazy.

Wouldn't put really nice things in for a section 8 tenant. Only if the area had very high rents and other rentals had those as customary would I add such a thing. If market rents are 900 and the other landlords are offering laminate and carpet etc. then do the same. Screen out for the bad tenants and that will help your property perform and cash flow.

Ann Bellamy · Answer

Ooops!  Thanks Steve Babiak for the catch.  I did of course mean in favor of the tenant.  Don't know why the brain in my typing fingers wasn't working.  :-)

Matt Devincenzo · Answer

Haha Samson Kay you definitely don't need anything "nicer for section 8. Their requirements have to do with health and safety, vinyl and laminate counters are perfectly fine. Now like other said what your competition has is what you need also, but if they have granite and stainless I'm guessing they're not renting to section 8.

Steve Babiak · Answer

Yeah, more like Section 8 and stained appliances :)

Ryan M. · Answer

Section 8, stainless appliances.... those are two things that don't go together

David Krulac · Answer

Samson Kay
For your average Section 8 rental forget granite, stainless, and maybe the dishwasher, none are required.

If you have existing hardwood floors, great.  If you are adding hardwood floors you might want to consider a durable laminate with a long warranty.

The section 8 rents are at

http://www.huduser.org/portal/datasets/fmr.html

for the entire country.

The Section 8 Bible books are great, entertaining and very useful information from the guys who actually owned hundreds of section 8 units.

Lolita Ellis · Answer

Everyone had great suggestions, you should consider contacting the local Department of Housing that facilitates the program and get the list if any of Housing Quality Standards (What they call it in my area). I would assume since you are rehabbing much of what you will put into the units will be brand new. So everything should be in working order and pass inspection. As suggested by others before me, I or my partner would consider visiting local units avail in the area and go with exactly that if you decide to step it up a few coins (I mean coins )  to give your units edge and more appeal just make sure you restrict yourself to a small dollar amount. I would not go all out and thats on any rental. You try to make each home standard offering clean living.

All Section 8 tenants are not the same there are some who are hard working but fell on hard times and are working very hard to get off the system, but income, living situation and demographics complicate the change. Now on the other hand (which happens to be my luck) you have the one looking for a fireplace, deck, all the upgrades and the rest is down hill as far as them maintaining the property etc. Def visit other units and contact DHCD in your area. Good Luck

Tevis Verrett · Answer

Samson, whooa there Bucko!

You have gotten wise advice from my much smarter than I brothers and sisters. . .

Um, you are going to ELIMINATE the breakable niceties in Section 8 housing.

I highly recommend the Section 8 Bible vols I and II by Mike McLean.

http://www.section8bible.com/

Much good luck in your investing,

Tevis

Steve Babiak · Answer

Ann Bellamy - from my reading, I would have thought the opposite - that the MA laws are very heavily slanted in favor of the tenant - but maybe I'm wrong ...

What do I need in my appartments to get Fair Market Rents for Section 8.

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