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Updated about 2 months ago on . Most recent reply
Section 8 Indianapolis
I've been speaking with brokers and property managers in Indianapolis and hearing mixed reviews about Section 8. Some have mentioned issues with the Indianapolis Housing Authority, including delays in payments and cases where landlords with new tenants haven't been paid since January 2024.
Do any local investors have insights or experiences with this? I'd appreciate hearing about the process, any challenges, or tips for navigating Section 8 in the area. Thank you!
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As a local Indy Investor and RE consultant I have been flowing the IHA development closely to see what kind of developments have been happening. There has been quite a bit of complaints in the past year of IHA mishandling payments or not paying at all and little to no communication. Some landlords have not been paid and some tenants are unable to make up for the rent owed by IHA and have either been evicted or are in the process of. There has been a lot of emotional damage to both sides.
There is a organization called Mirror Indy who, IMO, has written a couple of great articles about the IHA challenges. The articles show the devastation done by the lack or poor business practices of the IHA.
Does this mean section 8 is bad, NO, but this can happen in any city or state.
Part 1 -
https://mirrorindy.org/broken-housing-iha-indianapolis-secti...
Part 2 -
https://mirrorindy.org/broken-housing-indianapolis-iha-hud-s...
I have spoken to multiple investors from OOS and local about section 8 throughout the years. I have found that most have had a positive response to having section 8 tenants. Investors normally get there payments on time, most of the tenants stay for long periods of time because if they move it is a hassle for them, and since section 8 requires that the property stay in certain condition it will help keep the maintenance costs down. The negatives are what you will read in the articles.
In the end it is about your risk tolerance.