Exploring Section 8 Multi-Family Investments in St. Louis, MO – Advice Needed

[Isaac Hanai]

Hi everyone,

I’m currently evaluating a multi-family property in St. Louis, Missouri, and based on the numbers, it seems like it could be a great fit for Section 8 tenants.

I’d love to hear from anyone with experience in the St. Louis market:

• How strong is the demand for Section 8 housing in the area?

• Are there any specific neighborhoods or zip codes to target or avoid?

• Any insights into working with the St. Louis Housing Authority or tips for streamlining the inspection and approval process?

I’m excited about the opportunity but want to make sure I’m fully prepared before moving forward. Any advice or lessons learned would be greatly appreciated!

[Paul Cijunelis]

Quote from @Dustin Hagemeier:

As someone in property management, I’m pleased to share that we’ve had significant success with the Section 8 program. [...] In fact, approximately 40% of our business involves the Section 8 program.

40%... It saddens me to see this percentage creeping upward constantly. So many dependent on government. I hope this improves.

S8 can be a challenge. I'm not in St Louis, rather Chicagoland. People you talk to will either love or hate S8. It depends on the experience they've had. For me, on my properties, it's been pretty good. But there are challenges for sure. The key for any tenant, S8 or not, is screening, imo. 

You'll typically need to set up your account and get familiar with the process of working with the local housing authority. Reach out to them. They are the source. In terms of the areas, you will be best served driving it. I don't ever recommend someone buy a property having never seen or been there.

It sounds like @Dustin Hagemaier would be a great resource for you. As a PM, his team would be familiar with areas and could help underwrite the property and take care of the day to day headaches. 

If you're going to do it alone, make sure you your due diligence: estoppels, inspection, review, consult with a local attorney familiar with the local regulations, etc. and good luck.