Section 8 housing

[Tom Owiti]

Does anyone have experience with or know about Section 8 housing and properties? Looking at a MF property and I noticed that some current tenants are section 8 tenants.

[Alice V.]

Yes Tom, I have a lot of experience with affordable apartment buildings and although a voucher gets a bad rap, many tenants are on the waiting list years trying to get a voucher.  Many take care of their units and are happy to have the help.  

Vouchers can have a ton of upside. Look at your local 2024 FMRs (Fair Market Rents) on the HUD User website, https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2024_code...

and also google your city's local housing authority and search for the 2024 Payment Standards.  These are the rents you can go by for rent increases or renting to new tenants.

I usually underwrite for more wear and tear in my analysis to cover the bad apples, but luckily the majority of section 8 tenants we've encountered across the country have been grateful to have their unit.