Why Section 8 is more than just "guaranteed rent"
Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes
Why Section 8 is more than just "guaranteed rent"
Most Popular Reply
Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 935 votes
6mo@Mario Benavidez I think your assessment of Section 8 tenants and the program is very optimistic. It is a good program, but I would describe it as less rosy than your words. I've had mixed experiences over 13 years with multiple S8 tenancies.
Screening is great for all tenancies. The challenge with S8 is the prospects all come with checkered backgrounds, often some criminal, low credit, pending collections, bankruptcies, low paying jobs, no savings, etc. They are never strong applicants or they wouldn't be in S8.
On the profitable side, consistent rent payment from the government is a nice plus. I have very much appreciated that. I think of it as my government tax dollars coming back to me. Holding the spectre of the tenants losing their voucher over them can be helpful, but keep in mind you already have a problem with them if it gets to that point.
Wear and tear, and damage, is often heavier with S8 tenants. Charge them for damage, you say? You have the security deposit and all the blood you can squeeze from an old turnip. These folks are poor. They have no savings. Sue them, someone might say. Sure, you get attorney, court costs, and a judgement you can't enforce. They will add it to their list. Of course, this is for the problem tenants. Screening certainly helps avoid them, but some still get through.
The tenants are always 1 day ahead of broke. It's paycheck to paycheck every month and sometimes others win the bill pay lottery. Lost job. The kid is sick. The other kid is sick. I'm sick. The car broke down. Someone died (again). Child support is late. I'm not getting enough hours at work. My husband left....and so did my boyfriend! We're helping someone out (and not paying me!) There can be an endless list of excuses for why they are late. I feel like I've had good S8 tenants, but a couple bad ones can consume a lot of your time and drive up your stress.
S8 offices can declare rent cannot be raised on the property and you get no increase year-over-year. This seems to be S8 office specific as I've had one office tell me increases are frozen while another from the next town over does increases.
Beware of government shutdowns, not that you can plan for them. Your government paycheck ends when HUD runs out of money. That didn't affect me, but the S8 offices had the countdown running for when they are out of money. It would have affected me if the latest shutdown ran another month. It's "almost" guaranteed payments. This becomes a much bigger issue for landlords who are heavily dependent on S8.
Just some experiences from the real playing field... To be fair, these issues can happen with traditional tenants as well. S8 tenants are just more vulnerable to disruptions.
11 Replies
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes6mo
What happens when the Tenant does not pay their portion of the total rent? Typically, a Tenant might actually be responsible for $100 or more per month. Also, how do you get Tenants to pay for damaged items discovered by the S8 Inspector at the Annual Inspection?
- Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes6mo
HI @Richard F. a comprehensive tenant screening process generally mitigates most issues related to the resident's rent contribution. Section 8 residents are typically very conscientious about lease compliance, knowing that violations jeopardize their voucher status. Furthermore, housing inspections are conducted strictly to verify habitability; if the resident causes any property damage, they are charged and held financially accountable just like any other tenant
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes6mo
@Mario Benavidez, do you have any specific answers to the questions I asked at the top of this thread?
- Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes6mo
@Richard F. if the tenant does not pay their portion, you can file for an eviction. If the tenant causes damages, they are charged.
sometimes these scenarions can be avoided by having a strong tenant screening process.
Please let me know if you have any other questions, Happy to Help.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes6mo
So filing for and carrying out an eviction (based on one or more months of Tenant not paying their portion), which will incur potentially thousands of dollars in lost rent (because S8 will stop payments if you do so) and attorney fees to actually remove the Tenants lawfully is the answer? Similarly, the Tenant damages, you "charge" them (IF S8 does not direct you to make repairs at the cost of the LL (which is highly dependent upon the integrity of the inspector, and the LL actually being present for the inspection to defend his position), and then try to collect from folks that you already know have very low actual income?
Sorry, over 30 years and hundreds of S8 Tenants, in hindsight it would have been better to upgrade the units to attract the top 10% of the tenant pool for the price range, and avoid being forced to accept less desirable and more troublesome tenants. You simply cannot extract blood from a turnip. There are far more Good Tenants than Bad out there.
- Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes6mo
@Richard F. Thanks for the reply, not all areas will atract non-section 8 residents. Thanks for the comment, have a nice day.
- Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 935 votes6mo
@Mario Benavidez I think your assessment of Section 8 tenants and the program is very optimistic. It is a good program, but I would describe it as less rosy than your words. I've had mixed experiences over 13 years with multiple S8 tenancies.
Screening is great for all tenancies. The challenge with S8 is the prospects all come with checkered backgrounds, often some criminal, low credit, pending collections, bankruptcies, low paying jobs, no savings, etc. They are never strong applicants or they wouldn't be in S8.
On the profitable side, consistent rent payment from the government is a nice plus. I have very much appreciated that. I think of it as my government tax dollars coming back to me. Holding the spectre of the tenants losing their voucher over them can be helpful, but keep in mind you already have a problem with them if it gets to that point.
Wear and tear, and damage, is often heavier with S8 tenants. Charge them for damage, you say? You have the security deposit and all the blood you can squeeze from an old turnip. These folks are poor. They have no savings. Sue them, someone might say. Sure, you get attorney, court costs, and a judgement you can't enforce. They will add it to their list. Of course, this is for the problem tenants. Screening certainly helps avoid them, but some still get through.
The tenants are always 1 day ahead of broke. It's paycheck to paycheck every month and sometimes others win the bill pay lottery. Lost job. The kid is sick. The other kid is sick. I'm sick. The car broke down. Someone died (again). Child support is late. I'm not getting enough hours at work. My husband left....and so did my boyfriend! We're helping someone out (and not paying me!) There can be an endless list of excuses for why they are late. I feel like I've had good S8 tenants, but a couple bad ones can consume a lot of your time and drive up your stress.
S8 offices can declare rent cannot be raised on the property and you get no increase year-over-year. This seems to be S8 office specific as I've had one office tell me increases are frozen while another from the next town over does increases.
Beware of government shutdowns, not that you can plan for them. Your government paycheck ends when HUD runs out of money. That didn't affect me, but the S8 offices had the countdown running for when they are out of money. It would have affected me if the latest shutdown ran another month. It's "almost" guaranteed payments. This becomes a much bigger issue for landlords who are heavily dependent on S8.
Just some experiences from the real playing field... To be fair, these issues can happen with traditional tenants as well. S8 tenants are just more vulnerable to disruptions.
- 6moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @James Mc Ree:
@Mario Benavidez I think your assessment of Section 8 tenants and the program is very optimistic. It is a good program, but I would describe it as less rosy than your words. I've had mixed experiences over 13 years with multiple S8 tenancies.
Screening is great for all tenancies. The challenge with S8 is the prospects all come with checkered backgrounds, often some criminal, low credit, pending collections, bankruptcies, low paying jobs, no savings, etc. They are never strong applicants or they wouldn't be in S8.
On the profitable side, consistent rent payment from the government is a nice plus. I have very much appreciated that. I think of it as my government tax dollars coming back to me. Holding the spectre of the tenants losing their voucher over them can be helpful, but keep in mind you already have a problem with them if it gets to that point.
Wear and tear, and damage, is often heavier with S8 tenants. Charge them for damage, you say? You have the security deposit and all the blood you can squeeze from an old turnip. These folks are poor. They have no savings. Sue them, someone might say. Sure, you get attorney, court costs, and a judgement you can't enforce. They will add it to their list. Of course, this is for the problem tenants. Screening certainly helps avoid them, but some still get through.
The tenants are always 1 day ahead of broke. It's paycheck to paycheck every month and sometimes others win the bill pay lottery. Lost job. The kid is sick. The other kid is sick. I'm sick. The car broke down. Someone died (again). Child support is late. I'm not getting enough hours at work. My husband left....and so did my boyfriend! We're helping someone out (and not paying me!) There can be an endless list of excuses for why they are late. I feel like I've had good S8 tenants, but a couple bad ones can consume a lot of your time and drive up your stress.
S8 offices can declare rent cannot be raised on the property and you get no increase year-over-year. This seems to be S8 office specific as I've had one office tell me increases are frozen while another from the next town over does increases.
Beware of government shutdowns, not that you can plan for them. Your government paycheck ends when HUD runs out of money. That didn't affect me, but the S8 offices had the countdown running for when they are out of money. It would have affected me if the latest shutdown ran another month. It's "almost" guaranteed payments. This becomes a much bigger issue for landlords who are heavily dependent on S8.
Just some experiences from the real playing field... To be fair, these issues can happen with traditional tenants as well. S8 tenants are just more vulnerable to disruptions.
ONly a rookie or foolish landlord is going to evict a S 8 tenant for not paying the co pay of 50 or 100 a month.. EXACTLY now you have a vacancy now your at risk of vandalism and theft when tenant tells cousin Ray ray the house is vacant.. now you have to do yet another tenant turnover for 3k to 5k so on and so forth.. In my experience you have to run your numbers with those that have small co pays as your not going to get that money if you do its a bonus. And or as we know they will just move on when lease is up but you dont create a advisory position over 50 or 100 bucks a month out of a 1200 to 1500 dollar rent.. that idiotic in my experience.
Also the reality many if not most times is you have a single mother with young children there is not a tougher tenant on a house than that scenario.. so count on costlier turn overs.
- 6moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Mario Benavidez:
Hey BP fam,
Section 8 gets a lot of mixed reviews, but if you screen voucher tenants just as strictly as market-rate ones, it’s a massive cash-flow stabilizer.
Here is why leaning into the voucher program is a solid strategy:
- Recession-Proof Income: The housing authority direct-deposits their portion of the rent every single month, no matter what the economy is doing.
- High Retention: Voucher holders tend to stay much longer because moving is a hassle and finding good landlords can be tough. Less turnover equals a much better ROI.
- Proactive Maintenance: Annual inspections get a bad rap, but they actually force you to stay on top of minor repairs before they turn into massive, expensive disasters.
- Competitive Rents: Depending on your zip code, HUD's Fair Market Rents can actually meet or beat local market rates.
It takes some patience with the initial paperwork, but it’s a great way to build a resilient portfolio.
For the Section 8 landlords here: What’s the biggest lesson you learned with your first voucher tenant?
You are making a broad claim and ignoring all the other challenges of the program!
Do you work for one of the S8 gurus charging newbies $1500+ for a useless S8 program?
How will, "but if you screen voucher tenants just as strictly as market-rate ones, it’s a massive cash-flow stabilizer" solve all the other issues.?
Logical Property Management4.9458 Reviews - 6moStuart UdisPro MemberAttorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
@Mario Benavidez Wouldn't purchasing higher barrier real estate and being a proactive landlord who stays on top of opex and capex accomplish the same? The only difference is the high barrier real estate can actually absorb the costs associated with being proactive far easier than the types of properties that tend to be leased to voucher recipients.
- Property Manager · Cleveland · Member since 2025 · 52 posts · 28 votes6mo
Hello all, thank you for sharing your thoughts and experiences. Have a nice day.
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