Section 8 & HAP classes
Desmond HayesPro Member
Member since 2026 · 1 post · 0 votesSection 8 & HAP classes
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Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
17hHere is a link to the S8 Fair Market Rent amounts, by ZIP Code. Regardless of S8's "approval" of a prospective tenant, they are not performing a screening to protect you or your income. That job is up to you, and you need to determine how, and to what criteria, you will be doing that.
Here is a link to the current S8 Inspection Form AND Standards. This is being phased out.
Here is a link to the new NSPIRE inspection report and the new standards.
Here is a link to the current HAP contract and associated documents that you will be required to attach your rental agreement to, and incorporate with; and sign in agreement.
Contrary to popular opinion, S8 is NOT guaranteed income. It is common for tenants to stop paying "their portion" of the total. Depending on what an eviction costs in your locale, that may, or may not be worth chasing. OTOH, if you complain to the Housing office about that, or other tenant issues, they often simply remove the family from the program...leaving it up to you to evict and actually remove them from the premises. Also, there are delays working with Housing. It varies by locale, but it takes days, to weeks, to schedule a required inspection prior to occupancy. This is time that you never received rent payment for. If you fail an inspection, it will be days or weeks before you can get re-inspected...still without rent income.
5 Replies
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes17h
Here is a link to the S8 Fair Market Rent amounts, by ZIP Code. Regardless of S8's "approval" of a prospective tenant, they are not performing a screening to protect you or your income. That job is up to you, and you need to determine how, and to what criteria, you will be doing that.
Here is a link to the current S8 Inspection Form AND Standards. This is being phased out.
Here is a link to the new NSPIRE inspection report and the new standards.
Here is a link to the current HAP contract and associated documents that you will be required to attach your rental agreement to, and incorporate with; and sign in agreement.
Contrary to popular opinion, S8 is NOT guaranteed income. It is common for tenants to stop paying "their portion" of the total. Depending on what an eviction costs in your locale, that may, or may not be worth chasing. OTOH, if you complain to the Housing office about that, or other tenant issues, they often simply remove the family from the program...leaving it up to you to evict and actually remove them from the premises. Also, there are delays working with Housing. It varies by locale, but it takes days, to weeks, to schedule a required inspection prior to occupancy. This is time that you never received rent payment for. If you fail an inspection, it will be days or weeks before you can get re-inspected...still without rent income.
- Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes17h
Quote from @Richard F.:
Here is a link to the S8 Fair Market Rent amounts, by ZIP Code. Regardless of S8's "approval" of a prospective tenant, they are not performing a screening to protect you or your income. That job is up to you, and you need to determine how, and to what criteria, you will be doing that.
Here is a link to the current S8 Inspection Form AND Standards. This is being phased out.
Here is a link to the new NSPIRE inspection report and the new standards.
Here is a link to the current HAP contract and associated documents that you will be required to attach your rental agreement to, and incorporate with; and sign in agreement.
Contrary to popular opinion, S8 is NOT guaranteed income. It is common for tenants to stop paying "their portion" of the total. Depending on what an eviction costs in your locale, that may, or may not be worth chasing. OTOH, if you complain to the Housing office about that, or other tenant issues, they often simply remove the family from the program...leaving it up to you to evict and actually remove them from the premises. Also, there are delays working with Housing. It varies by locale, but it takes days, to weeks, to schedule a required inspection prior to occupancy. This is time that you never received rent payment for. If you fail an inspection, it will be days or weeks before you can get re-inspected...still without rent income.
All reasons why I respectfully decline to participate in any of the voucher programs. I know others who have experienced everything you mentioned, and more (uncovered damages, unauthorized additional residents unable to be evicted, etc).
Skyline Properties - Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes7h
JD, just be sure your locale has not added "source of income" to their Fair Housing protected "classes". You can still use debt to income ratio as a criteria...total actual monthly expenses such as tenant portion of rent, car payment and other transportation costs, groceries, utils, cable tv, credit card, and anything else that shows up on background, vs. tenants total income minus the voucher amount.
- 9hJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 752 votes
Desmond, start with your local housing authority, not a course. That is where the real rules live for your market: how to list, how the inspection works, and how the HAP contract gets signed. Every housing authority runs it a little differently, so a general course will not tell you what Memphis does.
In Memphis, Section 8 is a big part of my business across 236 single-family properties. I focus on 3BR or larger, where Section 8 rents run $1,395-$1,950. That rent is what makes my BRRRR numbers work: buy under $100K, ARV $180K-$265K, and refinance at 70-80% LTV on DSCR.
Two plain truths Richard is right about: the rent is not guaranteed, because the tenant still owes their portion, and inspections take time. I budget for that delay and for the tenant portion not always coming on time. Get one unit through the full process, inspection to first HAP payment, before you scale it. What market are you buying in?
- 2hJohn RacinePro MemberRental Property Investor · Casselberry, FL · Member since 2008 · 244 posts · 119 votes
Desmond, I'd second James on starting with your local housing authority, and I'd add one thing I learned the hard way: talk to them before you buy, not after.
My first purchase was two duplexes in Orlando that would have been ideal for Section 8, and I couldn't get them approved. At the time, the housing authority didn't need any additional units. I ended up renting to tenants who paid weekly, and there were constant issues.
The lesson I took from it: before you buy, know all of your options and what roadblocks might be there if you have to pivot. If Section 8 is plan A, ask the housing authority whether they're adding units in your area and what it takes to get one approved, and walk the property against that list before you close.
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