Section 8 Rental- To Install Central A/C & Washer/Dryer

[Brandon Rosenblatt]

I put my first investment property in Baltimore, MD recently.  I am about to start the rehab and plan to rent it as a Section 8 property once I'm finished.  I am deciding now what level of renovation will give me the most "bang for my buck." I've heard that Section 8 pays more for properties that have things like ceiling fans, central air conditioning, and washer/dryer in unit.  That said, I haven't been able to find definitive confirmation on this topic. Moreover, I would be interested in hearing some firsthand experience on how much extra income I could expect to see if it justifies the added initial expense.  

[David Shapiro]

@Brandon Rosenblatt I have a property I rehabbed and has been rented to Section 8 tenants for the past 4 years. You might know this, but The Housing Authority does a market analysis of comparable properties to decide how much they are going to pay. Every year I request more and they approve an amount based on comps. I've never seen a report, and I could be corrected by somebody that has worked for a housing authority, but I don't think it's that advanced (although this year they authorized an amount $5 less than I requested haha). My guess is they go based on primary features i.e. # Bathrooms, # Bedrooms. Either way, my recommendation would be to not put in AC. It's expensive and even if you get more rent, it's probably not enough to be worth it. Because of the lack of landlords that accept Section 8, I don't think people with housing vouchers can be that picky. I have several houses with AC and it costs me on average a couple hundred dollars per year in service calls (these aren't particularly old systems either, two of them installed in last decade).

If you are going to have the ceilings open as part of your rehab and you can put the ductwork in so you can easily add AC in the future, I think that's a great idea. With no AC, I would put in some inexpensive ceiling fans.

I would make sure there are washer/dryer hookups, but I wouldn't supply the appliances themselves. The fewer appliances you are responsible for, the better. No garbage disposal either. Put in the most durable materials you can (e.g. Tile Floors).