How are we feeling about Section 8?

Question

I have a duplex in Santa Barbara County. One side is rented at market rate to a family with section 8. It has been a very positive experience. The other side is coming up for rent. At this point no new vouchers are being issued, but none are being taken away. With our current administration making sweeping cuts to government programs, what are your thoughts on the section 8 program and HUD in general going forward? I am hesitant to put all my eggs in that basket, but the market demand in that area is significant.

Ghassan Jabali · Answer

Hello Amy,

I hope you're doing well. There is definitely uncertainty about Federal Funding for HUD, however, there may still be funding from the States to approve Section 8 Housing tenants for you. That can still help you with your real estate goals for renting the duplex. However, if you are also wanting to diversify your portfolio, then you can also rent to non-Section 8 tenants and/or offer the premises as a short term rental.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Mike Anderson · Answer

Glad the are finally going to limit it. While it is beneficial to some land lords who work in this market, these sort of programs at the federal need a massive overhaul, we simply can't afford all of this anymore.

Amy Gardner · Answer

Thank you! Yes, I think I will need to diversify in order to sleep at night. Too much uncertainty!