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Do you rent out to section 8?

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  • Do you rent out to section 8?

    The first time my PM asked me that question, I asked "What's that?" after she explained, it to me, I said "why not?" Those tenants gave me no trouble for 4 years, but they're getting divorced and will be gone soon. It's a nice home in a decent middle class area. I'm willing to take another section 8, but maybe I was just lucky the first time? Any thoughts?

  • #2
    Didn't know you could choose; shows how much I know about it.

    I recently found out that what I was charging for rent qualified for lower tax rates this year.  (My tenants were fabulous and worth the decreased income.)

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    • #3




      Didn’t know you could choose; shows how much I know about it.

      I recently found out that what I was charging for rent qualified for lower tax rates this year.  (My tenants were fabulous and worth the decreased income.)
      Click to expand...


      You can choose "not" to rent to the individual applying with section 8.

       

      My parents did the same you mentioned.  My dad loved to only increase rents by like $10-20 instead of the $50-100 others were because he liked the tenants.

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      • #4
        My tenants only seem to average 2-4 years so I haven't ever increased the rent. I will raise by $50 or so a month when they vacate which has worked well over the years.

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        • #5
          I have had a section 8 renter and it was a great experience, no worry about getting paid. I had to fix up a couple of things in the house (appreciated the inspection), otherwise, good to go. The tenants (a young single mother and daughter) stayed until they moved to a new city. I would do it again, if asked.
          Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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          • #6
            We have a couple of apartment communities that we allow Section 8 renters in.  If you screen your tenants well, they can be great renters.  The housing agency will require an inspection which is never any trouble to pass assuming you aren’t treating it like a slum. Additionally, it can be difficult to increase rent.

            The only thing that I would be aware of is making sure your lender (if you have one) has let you know what they require. It’s been our experience that lenders try to stay away from Section 8 and other housing programs and like for you to keep it under 30% if you are an apartment complex.  Again, this is our experience and admittedly I don’t know much about single family rentals pertaining to housing programs, but I wouldn’t be surprised if they had an opinion.

            Ultimately, I would just stress to screen your tenants stringently and you should avoid any problems.

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            • #7
              Section 8 in the short term is fine. But it will really hamper your ability to keep pace with the market rate rents in the future.

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              • #8




                My tenants only seem to average 2-4 years so I haven’t ever increased the rent. I will raise by $50 or so a month when they vacate which has worked well over the years.
                Click to expand...


                We've never raised rent on any of our tenants that in our 15 year history of renting out properties.

                Here's an interesting story on section 8 and how HUD tried/tries to effect social change for the poor through their policies. Very interesting.  https://www.npr.org/templates/transcript/transcript.php?storyId=756028025

                My wife is the bleeding heart in the family, so she totally wants to rent out to section 8. I prefer to rely on my PM do the screening.

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