Real Estate Investor · Dallas, TX · Member since 2010 · 449 posts · 173 votes
12y
Hey Lynne, I'd just give them a call and ask them what's up. It's possible there was a mistake. S8 are always adjusting their/our tenants portions of the rent, but so far it's always added up to the agreed upon rent. Hope you get this all sorted out in a satisfactory manner. Good luck!
Real Estate Agent · Philadelphia, PA · Member since 2013 · 150 posts · 59 votes
12y
@Lynne M. Yeah I agree with @Harry M. Just give them a call and ask them what's up. Sec. 8 does adjustments from time to time however, it mainly only affects the tenant and not the landlord. The agreed upon rent will be the agreed upon rent as @Harry M. mentioned.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
12y
@Lynne M. how did you make out with this? I was asked to accept Section 8 and am looking at the pros and cons. Your case seems to be one where they decreased the rent paid so I am curious if they can really do that.
Vendor · Washington, DC · Member since 2013 · 23 posts · 4 votes
12y
They can do that because they have adjusted the rent comps in the area. This is due to the fact that the area is not worth as much as it once was. These adjustments almost always affect the landlord. Because of the fact that section 8 only goes by 30% of their income, and then they factor in what utilities they have to pay. During this same time the tenant's income may have decreased as well that's why their rent down to 0. Let me know if you need anymore assistance
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
12y
Sounds like sequestration. Regarding "Your case seems to be one where they decreased the rent paid so I am curious if they can really do that." Per the HAP contract, they can, but only with notice. On HAP renewal, they provide the landlord the option to opt out. Cuts in my area averaged 8% to 14% and it has nothing to do with MSE market numbers, utilities, or anything else. It is/was the sequestration that is the issue.
Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
12y
Section 8 will set the rates by what the rent rate is going for in the area not by jack up rates or just because you install new carpet. However, section 8 is guaranteed rent.