by Shae Bynes
• For investors, turnover and vacancy are the biggest expenses. Housing Choice program minimizes turnover and vacancy.
• The Housing Choice program is also Housing and Urban Development, Section 8 (HUD Sec 8).
• The majority of Section 8 (Sec 8) vouchers are for families with children.
• Section 8 renters typically stay for five to 20 years in the same location. For landlords, this means little to no churn, very few (if any) empty months with no income, fewer listing fees, no extensive remodels, and more savings over time. • Most Sec 8 tenants have no criminal background. They merely want to live in a quality house in a nice area and rent from a good landlord.
• “Often, a housing voucher is a tenant’s golden ticket to a neighborhood free from drugs, gangs, and other negative influences. A gateway to a better quality of life for the entire family. So, when they move into one of my houses, they usually stay for many, many years.” • HUD promises on-time payments
• “Payments come on time every single month via direct deposit into your business checking account. HUD doesn’t give excuses about late rent. The money is there. In fact, their housing assistance payments have been consistently funded in full for decades and hold billions of dollars in reserves.”
• Housing Choice vouchers - “Housing choice vouchers allow a tenant to live anywhere that accepts vouchers. This makes up the bulk of the Section 8 program. Only households with a monthly income less than 50 percent of the median income for the area in which they reside can apply for the program.”
• “HUD sets and maintains median income values for each region of the country, and the data can be accessed on HUD’s Office of Policy Development and Research website. Vouchers can be used for multiple-unit housing, single-family homes, or townhouses.”
• Housing Choice vouchers - “Housing choice vouchers allow a tenant to live anywhere that accepts vouchers. This makes up the bulk of the Section 8 program. Only households with a monthly income less than 50 percent of the median income for the area in which they reside can apply for the program.”
• “HUD sets and maintains median income values for each region of the country, and the data can be accessed on HUD’s Office of Policy Development and Research website. Vouchers can be used for multiple-unit housing, single-family homes, or townhouses.”
• Landlords Receive Protection from Tenants’ Financial Hardships
• If a tenant goes on unpaid medical or maternity leave from work, HUD covers the payments while they recover. Landlords won’t face a need to evict or have an unexpected vacancy as could arise with other tenants in the same situation.
• HUD protects the landlord’s near-term cash flow. It also helps the tenant through a tough time.
• If a tenant goes on unpaid medical or maternity leave from work, HUD covers the payments while they recover. Landlords won’t face a need to evict or have an unexpected vacancy as could arise with other tenants in the same situation.
• HUD protects the landlord’s near-term cash flow. It also helps the tenant through a tough time.
• Section 8 Rents Can Be Higher
• HUD has a predictable and reasonable “fair market” rate based on zip codes. Check your property zip code at their documentation system.
• Tenants pay a fixed amount of their income and HUD pays the difference. This means Sec 8 tenants can afford more expensive rental properties in upscale zip codes. Sec 8 tenants help keep the rental comps high rather than dragging them down. Meanwhile, property appreciation equally matches the primary market.
• HUD has a predictable and reasonable “fair market” rate based on zip codes. Check your property zip code at their documentation system.
• Tenants pay a fixed amount of their income and HUD pays the difference. This means Sec 8 tenants can afford more expensive rental properties in upscale zip codes. Sec 8 tenants help keep the rental comps high rather than dragging them down. Meanwhile, property appreciation equally matches the primary market.
• Long Section 8 Waiting Lists = Short Vacancies
• Once a house is approved for Sec 8 habitation, it can be filled quickly by a qualified tenant at the “fair market” rent.
• There is a ready, willing and able list of Sec 8 tenants ready to move where they are welcome.
• “Keep in mind that public housing authority social workers also conduct thorough screening of all waiting list candidates. And it doesn't stop there—if you have an issue with a tenant or family member, you have extra recourse outside of eviction. In addition, you can contact the social workers directly to mediate any issues with a tenant who's stepping outside of the lease agreement.”
• Landlord requirements: Property must be inspected for basic habitability and approved for the program by HUD Real Estate Assessment Center (REAC) employees. There’s an annual inspection thereafter. The tenant is also motivated to help keep the property in habitable condition and keep their “golden ticket.”
• There is a ready, willing and able list of Sec 8 tenants ready to move where they are welcome.
• “Keep in mind that public housing authority social workers also conduct thorough screening of all waiting list candidates. And it doesn't stop there—if you have an issue with a tenant or family member, you have extra recourse outside of eviction. In addition, you can contact the social workers directly to mediate any issues with a tenant who's stepping outside of the lease agreement.”
• Landlord requirements: Property must be inspected for basic habitability and approved for the program by HUD Real Estate Assessment Center (REAC) employees. There’s an annual inspection thereafter. The tenant is also motivated to help keep the property in habitable condition and keep their “golden ticket.”
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