BRRRR Strategy coupled with Section 8 tenants

2 Replies

Hello All,

My investment partner and I are thinking of different avenues on how to buy and hold homes in low income areas. I've seen people doing this across the country with no understanding on what incentives they are giving for others to move into neighborhoods which unfortunately may have high crime rates with unreliable and or problematic tenants/neighbors. So we started thinking of ways we could entice residents of the neighborhood to rent rehabbed homes without the fear of not being able to afford rent and the property generates guaranteed rent role without high tenant turnover or encountering high vacancy rates. So the only solution we thought about (not sure if this is a novel idea but I haven't heard too many doing it) is to rehab duplexes and triplexes and then supply the apartment to Section 8 tenants.

So the questions I have are:

1) Is this a viable solution that anyone has done before/has information on?

2) Are there certain criteria a property owner needs to meet in order to supply homes to Section 8 tenants?

3) Is there any local or state registration you need to complete in order to supply housing to these tenants?

4) Is there a minimum and or maximum amount of units you can own/provide for Section 8 housing?

5) Are there any gov't assistance programs encouraging investors to supply Section 8 housing?

I'm sure I'll have many more questions depending on the type of information I get lol. Look forward to hearing your responses!


Landlords have used this strategy. Yes Section 8 provides a consistent dependable cash flow, however you must make sure the apartment can pass the Section 8 inspection and sometimes they can vary based on the inspector and you have still screen candidates properly. 

You can have someone whom doesn't work and section 8 pays the full amount of the rent each month however the con is they might be in your apartment all day. 

You can have someone considered "working Section 8" which means the tenant pays a portion of the rent. 

I have several tenants on housing assistance.  They are probably better than average tenants for my area.  They tend to stay a long time.  My biggest advice is hire a property manager that is knowledgeable and has experience with section 8 tenants.