For those of you who take section 8, what are your screening requirements?

Question

I am just looking into section 8 and trying to learn. I understand that you screen a section 8 tenant just like you would any other tenant, but for what? They aren't going to have good credit or a lot of income, so what would be good screening requirements? Any other advice you have to give about section 8 would be greatly appreciated. Thanks

Kerlous Tadres · Answer

Hi @Carol Burns, I’d recommend looking closely at rental history, references, and how they’ve treated previous homes rather than credit scores or income levels. You still want to see things like on-time rent payments, no major lease violations, and a good relationship with past landlords. I also always verify they understand their share of rent and program rules, and I like to meet them in person to get a feel for communication and reliability. The housing authority pays the bulk of the rent, so your main risk is around property care and cooperation. Build a good relationship with your local housing authority. They’ll guide you through inspections, and once you’re in their system, vacancy risk can be lower because of steady demand.

Corby Goade · Answer

If you start changing your screening requirements based on your applicant's profile, you'll find yourself in hot water with fair housing really quickly.

We rent to section 8 and screen them the same as every other tenant, they just have a different source of income.

Patrick O'Sullivan · Answer

Hi @Carol Burns , great question. I’ve worked with Section 8 tenants for years, and solid screening is just as important, maybe even more so.

I focus mainly on rental history and landlord references. If they’ve paid their portion on time and taken care of the property, that means more to me than a credit score. That said, I still review the credit report and look for red flags like unpaid utilities or landlord collections.

Communication during the application process is also a big indicator. If they’re respectful and responsive, that usually carries over into the tenancy.

And even if the tenant’s portion is small, I treat it seriously. Consistency matters.

Section 8 can work really well with the right systems and expectations in place. Best of luck as you get started.

Sean McKee · Answer

Check out the Section 8 Bible: How to Invest in Low-Income Housing. I don't invest in section 8, but it helped me with some of class C units.

Marc Winter · Answer

Hi @Carol Burns,

Typical screening for Sec 8 and for non-subsidized tenants should be the same; credit reports, bank statements, income verification, employer verification, rental references, L/T search for actions/evictions.

Anylize the credit report to see what is causing any dings. Are there judgments? If medical collections are hurting the score, I have let that slide; if it's a utility collection like phone or electric, that is a red flag for sure. If they (or any tenant) has an eviction or mulitple l/t court filings on their record, that receives a hard-stop "no".

Receiving section 8 does not make the applicant a bad person. It does mean they have a lack of finances and/or finance education. Expect to pay a bit more attention to property condition and punctuality of paying a 'co-pay'. Don't let those co-pay payments slide, even if it's only $20.00. Yes, we've had tenants say they can't afford their small co-pay. They can always speak with their case worker to revise their co-pay if necessary. It's more about them taking responsibility for their finances and actions than just the money itself.

We have worked with dozens of sec 8 tenants. Just like the general tenant population, a few are great, most are average, and some are real stinkers.

Good luck!

For those of you who take section 8, what are your screening requirements?

For those of you who take section 8, what are your screening requirements?

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