Houston Section 8 Payment Standards Dropped Significantly in 2024

New to Real Estate · Houston · Member since 2020 · 4 posts · 0 votes

Hey everyone,

I've been doing some research on investing in Section 8 housing in Houston and came across something concerning. The Houston Housing Authority (HCHA) just released their 2024 payment standards, and they're considerably lower than last year. We're talking a drop from $4313 to $2764 for a 3-bedroom unit in Tier A-1!

Apparently, the rising cost of assisting voucher holders has stretched the HCHA's budget thin. Here's the kicker: they're only using 96% of their available vouchers. City officials are pointing fingers at landlords, suggesting they're charging inflated rents to maximize the voucher payout.

Mayor Whitmire reportedly lobbied for more funding in Washington back in May.

So, Houston Section 8 investors, what are your thoughts?

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Lane Berry
Property Manager · Houston, TX · Member since 2024 · 25 posts · 11 votes
2y
@Lance Mel Section 8 isn't easy in Houston. The approval process for vouchers and red tape involved getting it set up is a real struggle.

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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
I can't comment on the Houston market, but I do a lot of investing in Detroit.
While I haven't personally gone and confirmed it, folks are citing the same thing happening there. FMR's are apparently dropping pretty significantly.
I haven't looked into why but I'm not terribly concerned, personally. HUD reported FMR's have been above market rate rents and folks have definitely been trying to push the limits with how high they can get them.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
2y
@Travis Biziorek you don't have to deal with the owers that have their heads in the sand about market changes and just expect their rents to increase every year.
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Quote from @Drew Sygit:

@Travis Biziorek you don't have to deal with the owers that have their heads in the sand about market changes and just expect their rents to increase every year.
Sounds fun! lol
I always tell people S8 is NOT guaranteed. In the last 2 months I've had to start the eviction process on one of my S8 tenants. Another one had their voucher go to literally $0 on a reassessment. She hasn't paid yet this month, but we'll see...
This FMR change is just another example of how things can change.
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