I don't exactly mean liable but the post title only has limited space to type what I mean. I have never invested in a sec 8 property before but have been reading up on it so I'm familiar with the potential pitfalls. I realize it is possible to be completely kicked out of the program, as an investor, for various reasons. If I were to invest in a sec8 property I would prefer to pay a property management company to handle everything for me but what I'm unclear on is, if they were to do something that caused issues with section 8 would it also kick me, the investor, out of the program permanently? The property would be owned by a corporation or LLC and I would be as hands off as possible.

They would have to commit fraud to get kicked out of the program.  It is doubtful this would happen with a licensed PM company.  I've never one time heard of it happening, although I realize it is possible.  A house can get kicked out because of failed inspections that are not addressed and be resubmitted at another time after repairs are made, so I don't think it makes sense to waste brainspace worrying about this happening.

Ah ok thanks, that makes sense, glad to hear this!

In our experience they go after the PMC not the owner.