raising rent new section 8 landlord

[Larry Hucks]

Hi guys,

I am in escrow on a house with a house currently occupied by a section 8 tenant in Los angeles county (Lancaster, CA). The tenant is on a month to month lease, which I am thinking about continuing after closing escrow as month to month. The tenant has a 1 bedroom voucher but the house is a 4b/2b (she stated she would be getting a 3 to 4 bedroom voucher soon), and currently pays $1150/mo. I think I can raise the rent because the FMR for a 4b/2b is a lot higher than 1150. I think it can be 1250+, and I've seen on gosection8.com, some 4b/2b in that area for $1500. My question is that if she has a 1 bedroom voucher, the FMR for LA county say the rent is $1154 (https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2016_code/2016summary.odn). Would my rental increase request be denied if the tenant just has a 1 bedroom voucher since the voucher wouldn't cover them for a higher rent? Is that how the housing authority determines if the rent can be increased? What should I do if I want to increase the rent?

[William Price]

I'm not familiar with Section 8 in LA, but in my experience with Sec. 8 in D.C., the rent the tenant pays is determined by their voucher, not the size of your unit.

I have 4BR units and I have had many applicants say that they currently have a 3 BR voucher and they will soon be getting a 4BR voucher and I always pass on them because I have found they want  a larger place, but are unable to pay the increased rent.  I think a lot of times they are hoping to get an extra BR voucher, but in reality they don't end up qualifying so you are stuck with the reduced rent.  They may offer to pay you the difference between a 3BR and 4BR voucher, but be careful because that is illegal in D.C. and even if was legal, if they stop paying the difference between a 3BR and 4BR voucher, you are stuck with the lower voucher. 

Unless the current tenant can show you paperwork that shows they have been approved for a 4BR voucher, I would evict this tenant and try to find one with a 4BR voucher so you can start collecting a much higher rent!