Section 8 ROI

[Andres Pepping]

Hi everyone, 

We are a group of real estate investors that invest in rental properties overseas. We are looking to purchase the first investment property in the US (looking at a few cities). We are interested in Section 8 - going over the HUD rents and doing the math on the CoCROI we sometimes come up with 20%+ ROI (accounting for capex, repairs, vacancy, management, etc.)

Going over some of the forums here I see a lot of 10%-12% CocROI of investors with Sec8 properties. Can anyone tell me if there is something I am missing? Are the rents posted on the HUD website not the actual rents that are being paid to landlords? (assuming the property is in good condition). 

Thanks.