I have no experience with the Philadelphia housing choice voucher (section 8) program. But I have done some research. I'm considering partnering with this program for a possible next investment and have come across this just released fair market rent determination guide:
Are these numbers guaranteed? If not, how can you figure out how much you can rent your unit for? I've heard that the PHA doesn't tell you until the end of the process, which can take quite a while. This is all done after you screen your prospective tenant. For example - I am looking at a property with 1 and 2 bedroom units in 19144 and trying to determine what I can rent them for through HCV.
If you have experience with the program here in Philly (Philadelphia) can you chime in? Please don't bother if you are in a different area as I'm aware things are done quite differently here.
@Max Flambert To answer your question the rents are not guaranteed. In like step 3 or 4 of the process, and yes after you find and screen the tenant. PHA completes a reasonable rent evaluation of the area and then negotiates a reasonable rent with the owner. What I usually do is, I complete a market rent analysis of the area and then I'm able to have a range of what the property could rent for. Also PHA takes into account your amenities when determining the rent for the property.
How it works is HUD will cut a big check to the applicable housing authority for Philadelphia. HUD will also generate, by county what FMV rents by unit type are along with utility allowances. The actual rent, if only using HUD funds, will be FMR - applicable UA.
The local H/A may kick in some more money, since they need to allow voucher holders to be competitive when applying to market-rate units. However, it's not going to be a number >>> market-rate rent.
@Max T. so one of the things I never fully understood with PHA rent determination is the role of what the tenant can afford. So whatever fair market value is -- no you are not at all guaranteed to get that. When they say the tenant can only afford x, that is what you are getting. Of course you can then say no tnx but you will be at least a month into the process by that time. It is negotiable to some degree.
Thanks @Sheryl Sitman for your insight and providing me with the PHA document that my screenshot came from.