Texas Tarrant County Housing Authority

[Brad Thompson]

Hey Guys - I got a lead on a rental with a tenant in place, placed by the Tarrant Co. Housing Authority. I have no clue whether this is good or bad...anyone have any experience with this? 

[Hattie Dizmond]

@Damon Duperre

 @Bradley Bogdan is correct. No data to support your theory, particularly on SFR, if for no other reason than neighbors would never know a tenant was receiving Sec 8 subsidies, unless the landlord or tenant told them. We have had some issue with apartment complexes devaluing surrounding properties, but that was a result of complexes being built with the stated purpose of providing low-income housing. The entire complex was going to be Sec 8. The developer was applying for local funds to facilitate the creation of affordable housing. Therefore, there was a public notice and probably a hearing at the zoning board. For a SFR, it really isn't a big deal.

Also, there is ONLY 1 inspection.  It really is very reasonable.  Here are a list of the things the inspector will look for...

• Utilities not on
• Inoperable heat supply
• Missing or insufficient weather-stripping
• Loose or torn carpet
• Missing or cracked electrical outlet cover plates
• Cracked or peeling paint on walls
• Cracked or broken window panes
• Missing refrigerator kick plates
• Evidence of roof leaks/pipe leaks
• Dirty stoves, ovens or walls and unkempt perimeter surrounding house
• Insufficient bath ventilation and inoperable smoke detectors
• Leaking faucets or plumbing
• No temperature/pressure relief on water heaters

You screen your own tenants, then you submit the paperwork to have a tenant approved by the Housing Authority.  It will take longer to get a tenant in the property than with a non-Sec 8 tenant, because there is about a 2-week period to complete the inspection and the "Rent Reasonableness" check.  However, you can use www.gosection8.com to ensure your rent is considered reasonable for the area of the property.

I think it's generally a safe assumption that folks living in public housing are not taking care of it the way they would their own place. However, our experience has been that Sec 8 tenants placed in SFR homes are very good tenants, when those properties are located in B or better neighborhoods. They know the number of landlords in those areas willing to accept Sec 8 is limited. They suddenly have an opportunity for some degree of stability in a safe area with good schools. They don't want to chance loosing that and understand that if they get evicted, it can have jeopardize their ability to continue on the Housing Choice Voucher program.

Even though we have chosen to target only C+ and better neighborhoods for buy & hold, we've already made the decision to accept Sec 8.  We will screen those tenants with the same level of due diligence we screen any other tenant.  As long as we don't have to take a major haircut on the market rent we are able to charge, we look forward to the opportunity to help people improve their situations.