How to Become a Section 8 Housing Landlord – Requirements, Pros & Cons

Im trying to explain good & bad about dealing with section 8 program.

How to Become a Section 8 Housing Landlord – Requirements, Pros & Cons

Section 8 is a program run by the United States Department of Housing and Urban Development (HUD) that provides rent assistance for low-income families. A section 8 landlord is a landlord that rents apartments to section 8 tenants. Under the section 8 program, HUD pays the landlord a portion of the rent while the tenants pay the remainder.

Section 8 will determine how much they will pay for each voucher based on a number of factors. The maximum amount they will pay will vary based on standards such as the town you live in and your income level. The amount of the Section 8 voucher may be more or less than the amount the landlord could receive for the rental on the open market.

How Section 8 Works for Landlords
The Section 8 process is fairly straightforward. In order to operate a Section 8 rental, the local housing authority must approve both the landlord and the property itself. Different housing authorities may have their own requirements, but typically any landlord can use the Section 8 program, including private owners and property managers.

As a landlord, you will need to complete an application and provide personal information. The housing authority will also review your rental rates to ensure that they fall in line with rates for comparable dwellings in your area. One major drawback is if the housing authority feels you are overcharging for your rental, you may be required to lower your rates.

Once the housing authority approves you as a landlord, an inspector will visit your rental property to make sure it meets all local building and safety codes. The inspection process is a lengthy one. At the very least, you must have working locks on every window and door, the structure must be sound, and the wiring and plumbing must work safely. Depending on the area, you may need to install heating or cooling appliances, such as central air or radiant gas heaters. Some local codes may also require that you install handrails or safety ramps outside the property.

Once the inspector approves your property, you can begin accepting Section 8 housing choice vouchers. At that point, you find your own tenants and complete a separate lease agreement with them.

Then, once a month, the housing authority will mail you a portion of the rent and the tenant will pay you the rest.

Pros to Section 8 Housing
The Section 8 program has several advantages. Many landlords think the better aspects of the program outweigh the bad, but it is up to you to decide.
Guaranteed Rent. One of the biggest problems landlords face is getting the rent on time every month. With Section 8, you will always get the majority of the rent on time, every time. Typically, Section 8 tenants pay their portion on time as well. Since failure to live up to the lease can cost them their housing voucher, Section 8 tenants can be even more reliable than private tenants.
Pre-Screened Tenants. The housing authority reviews every case before approving a Section 8 housing voucher. Mostly, the housing authority is looking at income levels, but many housing authorities will turn down tenants with past criminal problems. This screening process may provide extra protection for your rental, and chances are that if the tenant passes both your tenant screening process and the housing authority’s, you won’t have any problems.
Wider Access. Section 8 is a popular program and most urban areas have hundreds of tenants on a wait list. By accepting Section 8, your property becomes marketable to a wider pool of tenants which gives you a better chance of getting it rented.
Free Advertising. The U.S. Department of Housing and Urban Development offers a website that tenants can use to find low-income housing. Several local housing authorities also maintain a website or a separate list of Section 8 landlords in their area. Both of these services are provided free of charge to tenants and landlords.


Cons to Section 8 Housing

Routine Inspections. To get into the Section 8 Housing Choice Voucher Program, your property will need to pass a safety inspection and possible routine inspections depending on the area that you live in.
Rent Control. The housing authority will not tell you what to charge for your house or apartment, but you will need to keep your rent within the median for your area. If you have an extremely well done or nice rental in a bad area, you may lose out on rent you could have otherwise charged outside of the Section 8 program.
Potential for Difficult Tenants. . Since these tenants are not paying much for the rental, they have less incentive to keep the property in great shape. Moreover, Section 8 can attract low-quality tenants that give you trouble. With that said, if you do your homework and keep an eye on the property, there is no reason you can’t find a great tenant and enjoy the experience.