Section 8 tenant in a high rent area

[Jay Thomas]

I am currently considering renting my rental property to a section 8 tenant but the problem is that the market rent is about $300 higher the HUD Fair Market Rent. The property is located in suburban cook county. Since it's outside city of Chicago, it is not part of the mobility area. I don't understand where HUD got their values. Is it possibly to rent to a section 8 tenant without lowering my rent?

[Jeffery Drayton]

@Jay Thomas

I have a SFH that I rent out section 8 in suburban cook county. Unfortunately it's ran under the PHA of the Cook County Housing Authority. The HUD fair market rent definitely is lower vs CHA that runs the program in the city of chicago. You can get higher rent for the property if the tenant isn't already paying 40% of their adjust monthly gross income. Typically the section 8 tenant only pays 30% of their adjusted monthly income towards the rent , so you can ask for that to be increased by an extra 10% up to the max of 40% to cover more of your asking rent amount. The tenant will have to pay the amount over the fair market rent amount. It might not cover all of your desired rent amount…but it will get you a little closer. During the screening process I usually ask my prospective tenants, " how much is your rent at your current unit? And how much of that are you responsible for paying? This will give you a better idea of if they have enough income to cover the extra 10%