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Updated about 12 years ago on . Most recent reply

User Stats

100
Posts
85
Votes
Josh Dane
  • Rental Property Investor
  • Chicago, IL
85
Votes |
100
Posts

Does the 50% Rule Apply to Section 8

Josh Dane
  • Rental Property Investor
  • Chicago, IL
Posted

I have learned a ton on this website, including the 50% rule regarding expenses (not including P&I). Look at gross rents (for example, $1,000 a month), and expect $500 in operating expenses. Now my question is, does this rule apply to Section 8 properties? I am trying to analyze these numbers and they look significantly better than "regular" properties. I would think expenses would potentially be higher considering the inspections and clientele.
Can anyone with experience please share your thoughts?
Thanks in advance.

Most Popular Reply

User Stats

907
Posts
258
Votes
Michael Lauther
  • Investor
  • Hampton Bays, NY
258
Votes |
907
Posts
Michael Lauther
  • Investor
  • Hampton Bays, NY
Replied

My short term experience with section 8 in Dayton is that initial rehab cost is higher due to regulation, maintenance has been the same and utilities are paid by the tenant. The up side is rent is deposited electronically like clockwork. would take all the section 8 I can get but you must screen tenants just as car fully.

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