Hello, I am considering accepting Section 8 voucher tenants for my SFH and small MF rentals in Travis County. After reading previous forum posts, I've come to find out Section 8 can be tenant or landlord "friendly" but this varies from market to market and even county to county. Has anyone had experience renting to Section 8 tenants in Travis County? My properties are in solid B class areas and have been well maintained and will be professionally property managed.

I like the idea of guaranteed rent checks, especially with such tumultuous and uncertain economic times and am not turned off by the idea that my properties have to be kept up to code and in good shape. Assuming the applicants are properly vetted and found to be qualified, what are your thoughts on renting to section 8 tenants? Pros vs cons? Can they be treated like any other tenant in that if they violate the lease agreement they can be evicted (assuming not due to a COVID-related hardship)? What's the process like for raising rent to market value year after year (any restrictions about this)?

Thanks in advance!

I know that many will discourage you form this for many good reasons as it’s not for everyone.  I can tell you that in my situation it was successful.  Only two properties and only held it for 3 years. Sold  before the crazy market. Tenants were great and zero issues. They had no plans of getting a better job as they didn’t want to lose their vouchers.  Getting those vouchers are very hard for them.  I don’t know how it is now.   I think it boils down to really knowing how to manage them, etc.  and being understanding of their situation and needs.  

Originally posted by @Nina Hayden :

I know that many will discourage you form this for many good reasons as it’s not for everyone.  I can tell you that in my situation it was successful.  Only two properties and only held it for 3 years. Sold  before the crazy market. Tenants were great and zero issues. They had no plans of getting a better job as they didn’t want to lose their vouchers.  Getting those vouchers are very hard for them.  I don’t know how it is now.   I think it boils down to really knowing how to manage them, etc.  and being understanding of their situation and needs.  

Thanks Nina, could you elaborate on reasons not to rent? I understand there's a certain stigma that comes with Section 8 tenants but would love to hear your experiences. Feel free to PM me. Thanks again!

@Mike De Lota  it honestly is no different than any other tenant, the goal is to find responsible and considerate tenants either way.  As @Nina Hayden mentioned the process to qualify for the program can be arduous and if they violate stipulations for the program, such as violating lease terms, they risk losing the voucher.   To my knowledge the renewal process takes considerable time.  It is important to note that housing vouchers can come from different entities: county, city, etc.  I have multiple voucher tenants with different programs and they are mostly similar but not entirely the same.  

@Bryan Noth Thank you! After their lease expires and you pla on raising rent to market rent, do you have to get that approved by HUD? My worry is that Section 8 may stifle the natural appreciation of rent prices to keep up with the market. Thanks for your insights!

In Portland, so TX may be different.  Here you cannot discriminate based on source of income, even if it is a Sec 8 voucher.

Having said that, I have no problem taking apps using Sec 8, however, they need to pass the same screen as any other applicant (which is good practice in general in light of fair housing rules).

I broker LIH and some people love Sec 8 (mainly because you get the EFT on the 1st), but most times you have a tenant co-pay that you need to collect.  So I'd consider Sec 8 not a swing factor either way.

@Steve Morris a thanks for the insight!

@Mike De Lota If the comparable inventory suggests rents can go up then absolutely.  For housing programs you have to give market comparisons for current rates to justify an increase.  If the respective housing authority accepts your proposal then you can request an increase.