Investor · Shepherdsville, KY · Member since 2016 · 87 posts · 48 votes
Hello all,
I'm thinking about investing in some low income properties in Louisville. Particularly the Portland neighborhood. My question is what is the max rent you can recieve for a 2/1 or 3/2 SFR house on section 8? I called the local HUD office but they weren't much help. From what I've heard it varies from house to house but I just want to know a average to see if would be worth my time going the section 8 route.
Rental Property Investor · Louisville, KY · Member since 2016 · 48 posts · 55 votes
8y
@Fredie Robinson, as I understand the FMR numbers you posted are the correct numbers, however you have to take into account that they are supposed to include utilities. There is an information packet that you can get at the HUD office that explains the calculations.
I do not have actual section 8 experience, though I considered it. As my mentor (who is heavy into the low income area) puts it - "I don't want section 8 because I don't want another boss"
FYI - I have a 3/4bed 1bath in Portland - about 2100sqft - i put in new flooring and paint so it's decent - rents for $795.
Investor · Murfreesboro, TN · Member since 2013 · 430 posts · 178 votes
8y
@Scott A Smith Good points. We are out of state and invest in Louisville. We too have stayed away from Portland but have been watching to money and renovations happening there. To me it seems like a long play but I could be completely wrong. The points on section 8 are correct. We have our properties in south and south central submarkets and we have about 15-16% section 8. At one point the payments were delayed almost four months on section 8 and I know investors that had the majority of their units with section 8 were sweating hard as there was really no indication when payment would come. Inspections are harder but some I like as we need to offer good housing but some has been ridiculous. (We failed once for a light pole on a neighboring property.)