Section-8 Investors Please give your opinions / thoughts!

Investor · Cleveland, OH · Member since 2023 · 3 posts · 5 votes

Hello Bigger Pockets, My team and I are looking for a tip to point us into the right direction of how to convert our current tenant from regular rent she pays to a Sect. 8 Voucher (where rents in that zip code are much higher), she will have a percentage of the monthly rent paid for her by the government. Where we find a drawback on this move is our lack of knowledge of the legality of the question: "Can the Investment owner Legally ask their tenant to try to apply for the section 8 voucher?" If anyone knows the answer please leave a reply and any other cool section 8 or real estate tips / things to avoid.

Thanks!

Avi.

1 Reply

17 views

Most Popular Reply

Kyle MccawBusiness Member

Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes

@Avi Zarbavel your tenant needs to apply for section 8.

Here in Dallas Fort Worth section 8 pays market rent. They do not pay a premium. Sometimes people think they will based on the calculation on the voucher. HUD uses rental comps when approving the lease amount.

McCaw Property Management4.4902 Reviews

Website View Page

2 Reply

See this reply in the discussion

4 Replies

Jump to latestLatest

Sort by

Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
2y
@Avi Zarbavel your tenant needs to apply for section 8.
Here in Dallas Fort Worth section 8 pays market rent. They do not pay a premium. Sometimes people think they will based on the calculation on the voucher. HUD uses rental comps when approving the lease amount.
McCaw Property Management4.4902 Reviews
Website View Page
2 Reply
Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
2y
Quote from @Avi Zarbavel:

Hello Bigger Pockets, My team and I are looking for a tip to point us into the right direction of
She would need to qualify income wise and family size wise and apply to the housing authorities likely in the Cleveland area. If she has a job and can afford the rent now, I'm thinking she would not qualify for Section 8 assistance. Also it is not just as easy as applying in most places. There are limited spots and often those spots fill up quickly. In some areas people are on the waitlist for years. You probably know some of her details like income from her application. Find the Cleveland Housing Authority website and look at the application process and income requirements and that might give you a start. However she will have to apply, not you for her.
0 Reply
Pete Harper
Rental Property Investor · Streetman, TX · Member since 2018 · 527 posts · 495 votes
2y
Quote from @Avi Zarbavel:

Hello Bigger Pockets, My team and I are looking for a tip to point us into the right direction of how to convert our current tenant from regular rent she pays to a Sect. 8 Voucher (where rents in that zip code are much higher), she will have a percentage of the monthly rent paid for her by the government. Where we find a drawback on this move is our lack of knowledge of the legality of the question: "Can the Investment owner Legally ask their tenant to try to apply for the section 8 voucher?" If anyone knows the answer please leave a reply and any other cool section 8 or real estate tips / things to avoid.
Thanks!
Avi.
Section 8 voucher system really doesn't work that way. The tenant would need to apply for the program and be approved. There is normally a waiting list. Once they are approved you would need to have your property inspected and approved as well. This inspection is normally just a formality looking for health and safety issues. In your specific case I don't see a lot that you can do. I'd suggest increasing rent to market at the next available opportunity in your lease. If the tenant decides to move you have the opportunity to re-rent to a more qualified individual at Market Rent.

Generally we consider section 8 the bottom of the market. Your local housing authority will publish a list of market rent based on the size of the unit. If your current rents are below the HUD market rent in your area you have an issue. Either your current rents are too low and/or the property is in poor condition. We frequently inherit section 8 tenants with the purchase of a new property. Our strategy is to improve the property and raise rents above the HUD rate. In the meantime section 8 provided reliable income stream to assist with carry costs.
2 Reply
Jasmine Vida
Investor · Jacksonville, FL · Member since 2019 · 90 posts · 41 votes
2y
Why not just raise your rent?
If she can afford your rent now she will not qualify for section 8 unless she loses her job or her hours get cut dramatically, and even then I think the process takes a while to get approved
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.