Section 8 pros and cons

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Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
3mo

Pros - Income is guaranteed via the government

Cons - Much higher chance of your house being destroyed or having tenant issues

This pretty much sums in up lol

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  • Matthew CrivelliBusiness Member
    Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
    3mo

    Pros - Income is guaranteed via the government

    Cons - Much higher chance of your house being destroyed or having tenant issues

    This pretty much sums in up lol

    [email protected]413-348-8346
    Freedom Capital Funding, LLC523 Reviews
    WebsiteView Page
    2Reply
  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 555 posts · 320 votes
    2mo

    I've found that the biggest mistake is assuming the voucher tells you whether someone will be a good tenant. It doesn't. I'd screen a Section 8 applicant the same way I'd screen any other applicant, while following all applicable fair housing and local housing authority requirements.

    There are definitely some advantages. Having a portion of the rent paid directly can provide more predictable cash flow, and many voucher holders are looking for long-term housing, which can reduce turnover.

    On the other hand, you'll need to be comfortable with inspections, program requirements, and the administrative process. Those aren't necessarily deal breakers, but they do require some additional coordination.

    At the end of the day, I'd make the decision based on the applicant, not the program. A well-qualified Section 8 tenant is often a better choice than a weak conventional applicant, and vice versa.

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  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 2k+ posts · 853 votes
    2mo

    Hi @Chris Siverhus, it's smart to consider all angles with Section 8. The guaranteed portion of rent from the housing authority is a big plus, and Section 8 tenants often stay longer. On the flip side, there can be more inspections and administrative hurdles. For due diligence, I'd screen rigorously yourself, checking their background, references, and landlord history.

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2mo

    @Chris Siverhus What is leading you to consider a voucher recipient for this particular house? It sounds like you own multiple properties, yet this is the one you're specifically considering for a voucher tenant.

    I ask because it makes me wonder whether there is an underlying issue with the property that makes you less confident in attracting a quality market-rate tenant. If that's the case, I would focus first on identifying and addressing that issue if possible. If its a location issue, than that's not something you can correct unfortunately. In my experience, guaranteed rent from a voucher program does not solve the underlying problem that leads a property owner to view voucher tenants as the only option. More often than not, those issues remain and continue to impact the property over time.

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    2mo

    @Chris Siverhus the other thing you need to do is be diligent on if the section 8 applicant has a voucher that matches your property. Your bedrooms/rent.  If they are from another area, is it portable? I haven't dealt with the former issue but the later, an out of state voucher can lead to delays. by the time they could get their items in order a market tenant rented. 

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  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    2mo

    There are plenty of S8 related posts you can search here where I detail why the "guaranteed" income is such a fallacy. There are also links to actual inspection checklist and standards that you must meet as well as discussion on other aspects based on long term experience with scores of S8 Tenants. 

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Chris Siverhus:

    I am currently looking at renting one of my houses and getting several applicants for section 8.  

    What are the pros and cons??  

    What due diligence do you recommend for a landlord??

    Happy to have you here! I've had good experiences with Section 8 tenants, but I treat them the same way I would any other applicant. The biggest pros are that a large portion of the rent is paid directly by the housing authority, demand is usually strong, and many tenants stay longer, which can help reduce turnover. The downsides are the inspection process, a little more paperwork, and sometimes waiting for approvals before move-in. For due diligence, I'd still verify income for their portion of the rent, check rental history, run background and eviction checks where allowed, and actually talk to previous landlords. I also make sure they understand my expectations for the property before signing the lease. In my experience, the program itself doesn't determine whether someone will be a good tenant. The individual applicant does. Happy to connect and answer any questions you have!
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