I have a handful of properties that are local to me (Houston, Tx). All of them have a decent cash on cash return and I’ve always been selective of my purchases. Most of my properties have section 8 tenants and I can’t say I’ve run into any major issues. They tend to stay longer, they pay their portion timely & they don’t trash the house. I think that’s in part due to the rules of the program as well as proper tenant screening.

I’ve seen multiple Section 8 gurus on social media advertising their courses to buy properties in medium sized markets in less expensive states & get insane returns. Usually along the lines of 5-700ish net income per property with the properties costing less than $100k. In my most recent personal experience, the housing authority here didn’t pay the full amount the tenant qualified for based on her affordability worksheet for the zip code/tier the property is in. That number would’ve been around $3000/month. The housing agency did a market assessment and determined they’d pay a little above market rent. I was okay with that since I got the property at a good price and it still makes 3-400/month in cash flow.

That said, has anyone used any of these & do those agencies in smaller markets pay the full FMR as determined by HUD, or would they do a market assessment as well? I am open to trying it, but I don't want to commit to a property out of state and the hassles that come with that if the net income would only be $300 or so.

Thanks in advance

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Section 8 gurus - are they worth it?

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