Section 8/HUD rents higher than market-rents

[Mark Vella]

Good morning. I'm wondering how people go about leasing their section 8 properties when max rent allowance for a zip code is significantly higher than market-rate (non-subsidized). I've spoken with the local housing authority, but I am noticing some inconsistencies between guidelines and what the people at the authority told me. So... Can I market and receive the rent amount HUD says is the FMR?

For example: In a zip code I have in mind, the market rate rent is about $1,350 for a 3 bedroom apartment. The maximum rent allowed for section 8 in the zip code, according to HUD, is $1,860. Can I reasonably expect to get the $1,860 rent if I lease to a section 8 tenant?

To note, it seems the only zip codes where the big rent disparities exist is middle and upper class neighborhoods (this makes me think HUD is trying to incentivize section 8 in better neighborhoods/school districts). The max HUD rent in your "typical section 8 neighborhoods" is right in line with market rent. Am I missing something here? Is my thinking flawed? Am I missing some information?

[John Underwood]

Yes you can get higher rents with section 8.

It depends on the applicant and sometimes they don't qualify for the max HUD rent.

I have 4 section 8 properties and it has been good to me. When someone loses their job, gets divorced etc, section 8 will pay up to 100% (if not already at 100%) of the rent and can adjust it pretty quickly.