Apartmetnts with all section 8 tenants

[Kyle Carter]

I want to buy an apartment building and rent it out to all section 8 tenants. How is it different than having a multifamily property or SFH will S8 tenants? In regards to the valuation of the property what impact will this have and when do you know when its time to sell? How do you value a apartment that will be rented out to primarily section 8 tenants?

[Breeya Johnson]

Quote from @Kyle Carter:

I want to buy an apartment building and rent it out to all section 8 tenants. How is it different than having a multifamily property or SFH will S8 tenants? In regards to the valuation of the property what impact will this have and when do you know when its time to sell? How do you value a apartment that will be rented out to primarily section 8 tenants?

If you're renting an apartment building to mostly Section 8 tenants, the main difference from single-family or smaller multifamily properties is scale—you're dealing with more units, so you'll need solid systems for maintenance and tenant management. Section 8 guarantees part of the rent, which is great for income stability, but the building will have regular inspections to meet Housing Quality Standards (HQS). When valuing the property, focus on its net operating income (NOI) and use a cap rate that reflects Section 8's stable, government-backed rents. Some buyers might see this as a bonus, while others may worry about tenant turnover or stigma, so it can affect the price slightly.

Sell when the building’s cash flow no longer meets your goals, market conditions are strong, or you’re ready to reinvest into something else. Timing is key—catch a hot market or a great 1031 exchange opportunity. Overall, managing an apartment with Section 8 tenants can be super rewarding, but it takes careful planning to keep things running smoothly and profitable. I love section 8 but it comes with positives and negatives just like any other strategy. I hope this helps some and good luck!