How much are you making from your section-8 units?

13 Replies

I'm looking to get an idea of how much people are getting from the CHA for renting to section-8 voucher holders. I found the "payment standards" document on the website but those numbers look higher than what I've been hearing. For those of you who are currently accepting section-8 in your buildings, how much are you getting for your 1, 2, or 3 bedroom apartments? Do you get more if it's a single family home or does it only matter how many bedrooms you have? What about garden apartments?  I'm looking at properties in Woodlawn, West Woodlawn, Washington Prk, or South Shore as an example. 

Be aware. There could potentially be big cuts in the housing assistance programs could be on the horizon under the Trump administration. Just something to consider in your calculus.

Thanks for the tip. I very much doubt that will happen. He's never mentioned any such policy agenda in all of his many campaign speeches.  He's made it quite clear that he's very interested in helping the inner city families, working class families, and low income earners, not hurt them. But let's not get off-topic. 

I rent a 1-bedroom section 8 unit for 675/mo. The tenant gets about half of this rent from a section 8 voucher. It's in fair shape on the first floor of a duplex in a "B" area.

They base it off of market rents, so you may need to show them comps. We get $1,000 for most of our 2-bdrs with CHA covering about $850-$875 on average.

Originally posted by @Yoseph Kalman :

Thanks for the tip. I very much doubt that will happen. He's never mentioned any such policy agenda in all of his many campaign speeches.  He's made it quite clear that he's very interested in helping the inner city families, working class families, and low income earners, not hurt them. But let's not get off-topic. 

you doubt that it will happen ? s8 was designed as a temporary help..it became a way of life. of course he did mention that "we will get people off welfare". s8 is exactly what hurts inner city families ...they dont care about anything cuz the check is coming. the idea is to get a job and start supporting yourself. 

That's interesting @John Casmon   because if I were to look at the CHA information @Andrew Holmes posted I would think that a 2br apartment would pay $1,139 + all of the various utility expenses shown in the schedule. So if I understand you correctly, this is not necessarily the case? What would a landlord need to do to guarantee maximum payouts?

@Yoseph Kalman

In the suburbs section 8 pays out based on how they rate the suburbs. I will post the breakdown of which suburbs pay the most tomorrow. 

I'm sure in the city there will be a document that you can get from CHA that is similar. 

So as an example A three bedroom in Streamwood is not the same as three bedroom in the bellwood.

So that will make a difference in terms of how much you can pay for the property and how much cash flow you will receive. 

Also when you look at these numbers they will also do an overlay in terms of what are the trending rents in a particular area. 

Just make sure when you went out to section 8 tenants that you do the same screening and use same strict guidelines for all tenants.

Do not make exceptions because that is what gets people in trouble when they lower their standards. 

You can't use the advertised Section 8 tables as what they will pay in rent.  Those are the maximums, but not paid just because you ask for it.

Section 8 pays market and affordable rent subsidies. The local housing authority assesses the area, property configuration (beds, baths, etc) and features (sqft living space & lot size, HVAC, etc) in determining market rent. They might say market rent for a particular property is $1000 though the max they might pay in the region is $1500 for a house in that configuration. It is no different than traditional real estate purchasing or leasing.

Affordability is next. The prospective tenant can only afford to pay so much. Section 8 won't approve a lease over that amount. If they say the tenant can afford only up to $900, there's your rent if you want to go with Section 8 and that tenant.