Telling When It's Right: Student Housing and Section 8

[Jewel B.]

When it comes to student housing and Section 8, investors and landlords either welcome students and voucher holders with open arms and embrace the higher guaranteed payouts or shudder at the thought of higher wear and tear and rowdy or destructive tenants. However, at the end of the day, screening tenants properly, considering local landlord-tenant laws, and having an detailed attorney-created lease is key.

Universities are more or less permanent. New students turn over every year, in and out. Voucher holders will always exist. Students can have parent guarantors and often have lower and more manageable per person costs. Voucher holders have guaranteed payments through the government (though they have paperwork to stay up to date on). There are typically a long list of other students and Section 8 holders waiting in line for a student or Section 8 specific rental, which, when properly screened tenants, could mean they actually are more respectful of the property because they know how replaceable they are and how limited their options are (high demand, low supply). Plus, the higher cash flow should afford a little wiggle room for a little extra wear and tear.

What are things to look for when selecting a location for student housing? For Section 8 housing?

For student housing, what radius to the school? Universities only or colleges too? What radius from bars and clubs? What size schools? How important is parking, especially if close to the school? What types of schools are definitely NOT good for student housing?

For Section 8 housing, what types of neighborhoods or properties? B/C? What should you look for nearby? Since they are likely single mothers or younger couples with a child, I would imagine, schools, parks/playgrounds, public transportation, and grocery stores? What types of areas are definitely NOT good for Section 8? A (awkward?) or D & F (unsafe for children) neighborhoods?

Thanks in advance! I would love to hear your thoughts or experiences.