New Investor from Bay Area - Out-of-State Section 8 Rentals

[Juan Lopez]

Hey BiggerPockets Community,

I'm excited to jump into real estate investing, and as a new investor based in the Bay Area, I'm setting my sights on out-of-state opportunities. My focus is specifically on acquiring Section 8 rental properties, and I'm currently zeroing in on Detroit, Memphis, and Cleveland.

I'm here to soak up as much knowledge as possible. If you have experience in these markets, insights into building a reliable remote team (property managers, agents, contractors), tips for navigating the Section 8 process, or any general advice for successful out-of-state investing, please share!

Thanks in advance for your guidance and support.

[Melissa Justice]

@Juan Lopez,

Hey, welcome to the journey! I love that you’re jumping in with a clear strategy right out the gate!

Targeting Section 8 rentals in Detroit, Memphis, and Cleveland can be a smart move, especially for consistent, government-backed income. Each of those markets has affordable price points, strong rent-to-price ratios, and active investor networks, which makes them ideal for long-distance investing when you have the right team in place.

Here are a few tips to help you get started:
Build Your Remote Team First --
Look for property managers with Section 8 experience - they’ll help you navigate inspections, tenant placement, and recertifications.

Ask agents if they work with investors regularly and understand rental-grade rehab.

Vet contractors carefully, especially in cities where contractor reliability can vary.

Get familiar with the local Housing Authority’s payment standards.

Budget for slightly longer turnover timelines due to inspections.

In exchange, you’ll often get long-term tenants and consistent rent deposits.

Market Notes --
Detroit: Tons of investor activity and upside, but neighborhood-specific - know block-by-block. (I've personally invested in submarkets of Detroit)

Cleveland: Strong PMs available, lots of C-class inventory that works well with Section 8.

Memphis: One of the more active Section 8 markets - good returns but make sure you vet crime and tenant demand closely.

You’re on the right path. Out-of-state + Section 8 is a great combo if managed right. Happy to connect or point you toward contacts if you ever want to compare markets or teams. 

Best of luck,

Melissa