Can Section 8 Rates Be Renegotiated?

Question

Hey team,

I have a TH in Jacksonville with a Sec 8 tenant. Steady income, but the property is earning well below fair market rental rates for the conventional rental tenant market - roughly ~$500. Can I appeal to the Sec 8 program to increase the rental rate for the property? Or would it be better to leave the program and accept conventional tenants at higher rates? Thanks for your input!

Damon L. Davis · Answer

@Bud Gaffney @Rod Hanks

Thank you so much for the info, I'll definitely reach out to the local authority to increase the rates.

Bud Gaffney · Answer

@Damon L. Davis yes absolutely! Reach out to the local housing authority. You can certainly negotiate and request an increase every year. Hope this is helpful.

Damon L. Davis · Answer

I like how you think @Scott M. Options open!

Damon L. Davis · Answer

More great insight @Basit Siddiqi , thank you so much. I bought this property from the company that manages the property, the Section 8 program has been contacting them about renewal and whether I want to increase rents. My property manager has never asked if I want to request an increse. I'll be speaking to them about that. Thanks!

Scott M. · Answer

your two choices are not mutually exclusive.  You can request and increase and when they deny it you can leave the program.

Basit Siddiqi · Answer

Jacksonville HUD will normally reach out to you 60-90 days before lease renewal regarding new rental rates.Rental rates are normally dependent on amount of bedrooms / bathrooms and neighborhood.An inspector from HUD normally inspects the property before increase in rent to make sure property is in good livable condition.

Rod Hanks · Answer

@Bud Gaffney

Yes you can request a rent increase 60 days prior to the annual recertification.

Can Section 8 Rates Be Renegotiated?

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