Section 8 - Share your experiences!

[Justin Wingfield]

Hello BP peoples!

First, I am a relatively new multi family investor. I have a duplex that’s on the market to rent and I keep getting asked if I accept Section 8 vouchers. This makes me realize that I don’t know enough to answer that question one way or the other.

So I’m turning to you all! Please share your experiences with Section 8. Good or bad! Is it reliable income that’s government backed? Is it 100% of the rent? Should the tenant screening process the same even with section 8?

Thank you all in advance! This is a great community full of helpful insights!!

[Jennifer Donley]

I always love this question because it gets such varied responses.  I love Section 8, it's all I do.

I can't disagree with anything anyone has said here.  There are 5 main reasons I like Section 8:

1. Guaranteed Rent - even if the tenants pay a portion of their rent, and most of mine do, I don't have to chase it because if the tenant gets evicted, they can lose their voucher. I am currently owed $0 in rent from my Section 8 portfolio.

2. Higher Rents - in some of my areas, I get slightly higher rents that I would from market tenants.  Not always and I never count on it.  The rents are supposed to be comparable to market rents up to the Fair Market Rent amount but here, our HAs use different comp systems than I do so sometimes they come back with amounts that I wouldn't expect.

3. Long tenancies - generally, Section 8 tenants will stay longer because the processes to move are difficult.

4. Extra layer of accountability - the tenants have to follow your lease and if they break it and/or get evicted, they put their voucher at risk.  So pick good tenants and they will follow the rules.

5. Supply & Demand - the demand for quality S8 housing is very high and the supply is nowhere near enough (also a reason people stay put). So I've found that if I have one of the nicest properties in the area, I get a ton of interest (not uncommon for me to get 30 showings in a weekend and 10 applications).  That allows me to be very picky about who I pick to rent.

Good luck, let me know if I can help further!