VIRGINIA Section 8/Affordable housing question
Alright S8 wizards. We are on a ratified contract for a duplex (3/1 each side) in Petersburg, VA. Current rents are $700, but market is around $900. However, in looking at different strategies for this property, Affordable Housing may be an option. The link shows $1,340 for a 3 bedroom --> https://www.petersburgrha.org/...
So, how does one go about navigating these waters? Do you market the unit(s) at $1,200-$1,400 and note that vouchers are welcome to apply?
Thanks for your insight!
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@Jonathan Scheeler I have a portfolio of Section 8 properties in the St. Louis area. I get 5 to 10 percent more in rent that I would from market tenants. I'm not exactly sure why but in some areas, this is the case (my properties are B and C class houses/neighborhoods) and it's not unique to my part of the world. Do a little research and looking around even here on BP and you'll see other people talking about pockets with higher Section 8 rents than market rents. This seems to be the case more often in B to D class areas than A areas (generally I see that Section 8 rents for A areas are below market rents).
From my experience, the "rent reasonableness" test is what matters for Section 8 rents, up to the FMRs, meaning the HA is going to go off of what's reasonable for the area based on comps, up to the FMRs. The comps our HAs use aren't accessible to the public (silly) but they are higher than the ones I come up with so I don't complain!
I'd recommend finding a landlord that is SUCCESSFUL with Section 8 in the areas you're in to see what they get for rents (I capitalize successful because I talk to a lot of landlords who hate Section 8 and I don't recommend talking to them).