Section 8 Payments

[David Slack]

I am pondering getting into Section 8 rentals.  I am not sure this is the right time due to the cuts that the new administration is making across the board.  I have one question based upon past performance, at least.  Does the government really pay on time?  I have seen Section 8 "gurus" who boast about collection all of their rent money like clockwork from the government every month.  I have also heard horror stories about collecting the same money. If any of you out there either own or manages Section 8 rentals, can you please speak to this?  Thank you!

[Harvey Levin]

@Greg Scott Indianapolis is getting back on track. Typically, if any payment issue has occurred, it is resolved the next month if reported to the correct person. Past due rent increases have started, but the past due amounts are taking time. New tenants have the normal 30 to 60-day delay. As far as the evictions, the HUD HAP contract with the landlord expressly states that if the Housing Authority fails to pay its portion, an eviction is prohibited. Of course, since most Landlords do not read the HAP, unless the tenant has an attorney (each court has one available on the day of court), or the landlord is filing without an attorney, the court might order the eviction in error. This can be a cause of action for a civil lawsuit against the Landlord by the tenant. I do agree that it has been a real mess since February 2024, but it is getting better as they get caught up with the backlog. The current most difficult issue is that they do not allow tenants to move unless there is a compelling reason. It's great for Landlords with tenants already in place, but a longer delay in finding new tenants . Also, Indianapolis has been paying 20% above the Fair Market value of rents with no Cap on rent increases, which is a big bonus!!

If anyone is experiencing delays, feel free to DM me. I have  40 years of experience with Section 8 in Indianapolis.