Renting to Section 8 Tenants
The Housing Choice Voucher Program (once called section eight) was put in place by HUD for low income families to rent property. Many landlords choose this program for one reason…guaranteed rent every month on time. Unfortunately, it’s not always that simple. In some areas the tenant uses 30 percent of their income towards housing when enrolled in the program. For example, if the tenant makes $25,000 per year they are required to pay $625 of the monthly rent. If your rent is $900/month then the program only subsidizes $225/month. The $225 is the only portion that is guaranteed by the government. The rest must be collected from the tenant and there are no guarantees. This is a common misconception of the section 8 program. However, there are no guarantees at all when renting to anyone else. If you have been a landlord for a while, you have experienced this first hand.
posted in Real Estate Investing, Renting | 5 Comments
