sec 8 Rent Increase

[Joshua Thang]

Has anyone tried requesting a sec 8 rental increase but the rate comes in lower than the current rate? Would sec 8 decrease the rent to the calculated fair market value of rent or at worst case scenario remain the same and sec 8 decline the increase?

[Andrew Freed]

@Joshua Thang - I have never requested a rent increase and had section 8 come back and reduce the rate. From my experience, the reps at section 8 truly want to find suitable housing for their voucher holders hence I would be very suprised if they lowered the rent beyond the current rate. As a landlord, that may prompt me to not renew the tenants lease hence they would have to seek alternative housing. 

Based on my experiences of requesting rent increases on dozens of section 8 recipients, the housing organization has always granted a rent increase.... perhaps not at the level I would like but never below the current rate. 

[Jack Krusinski]

Hi Josh. I have some Section 8 rentals; no, I have never had this happen. When I asked for a bump in the past, I have received a slight increase in rent. It isn't always what I want, but it is more than what is currently in place. It has never been less. 

[Nathan Gesner]

Quote from @Joshua Thang:

Has anyone tried requesting a sec 8 rental increase but the rate comes in lower than the current rate? Would sec 8 decrease the rent to the calculated fair market value of rent or at worst case scenario remain the same and sec 8 decline the increase?

Yes. I stopped taking Section 8 for a variety of reasons. One of them was that Section 8 would not pay market rates. Why would I rent to a high-risk tenant for $850 a month when a normal renter will pay $1,000?

[Bob Stevens]

Quote from @Joshua Thang:

Has anyone tried requesting a sec 8 rental increase but the rate comes in lower than the current rate? Would sec 8 decrease the rent to the calculated fair market value of rent or at worst case scenario remain the same and sec 8 decline the increase?

 Never, matter of fact they are paying much more this year. I just got 1700 for a 4 br in Lee Harvard, and 900 for a 1 br in East Cleveland, 

All the best 

[Bob Stevens]

Quote from @Nathan Gesner:

Quote from @Joshua Thang:

Has anyone tried requesting a sec 8 rental increase but the rate comes in lower than the current rate? Would sec 8 decrease the rent to the calculated fair market value of rent or at worst case scenario remain the same and sec 8 decline the increase?

Yes. I stopped taking Section 8 for a variety of reasons. One of them was that Section 8 would not pay market rates. Why would I rent to a high-risk tenant for $850 a month when a normal renter will pay $1,000?

 Interesting in my market they pay MORE than market rents. 

[Nathan Gesner]

Quote from @Bob Stevens:

Q

Yes, I've heard there are some cities where Section 8 pays very well. It's a shame because that encourages welfare dependency for the tenant and the landlord, but that's another conversation.

[David Leggett]

Yes, CMHA just raised their Section 8 rental rates and are really trying to encourage more Section 8 properties in this area.  That's pretty rare that it would come in under the current price, normally like Jack said, they will give you some type of rent increase, even if it's not the full amount you requested.

But it's a completely different existential debate about Section 8 and whether they're really that much more high risk than traditional cash tenants.  I think it really depends on the neighborhoods, but in Cleveland, I've seen cash tenants with great background checks and 700 credit completely trash units and were some of the worst tenants imaginable, so I think it really depends on the area.  

But when you meet these subsidized tenants and listen to their stories, you can definitely sympathize for where they're coming from and understand that the program really does help people and the immense need for it in this area.