Baltimore Section 8

[Tim Pass]

Hello Bigger Pockets,

I am looking to buy in Baltimore Md to rent to Section 8 qualified tenants. What are everyone's thoughts of section 8? I've seen some horror stories on YouTube but believe the program can be very beneficial especially starting off. 

Thanks 

Tim 

[Sherman Ragland]

While Section 8, or "Housing Choice Vouchers" are a Federal program coming out if the US Department of Housing and Urban Development (HUD), Counties and Cities (over 50,000 population) are free to set their own rules, as long as they don't violate Federal guidelines. This means they way Prince George's County (or Howard County) administers their program can be quite different than the City of Baltimore. One huge difference is that in Baltimore the Housing office is much more "Pro Tenant"versus being Landlord/Tenant "neutral" in PG. Baltimore Housing, and the tenants play lots of games with Landlords, so you'll want to be sure to hire an experienced property manager who knows how to combat the tricks the City and tenants will inevitably try to play on you. Here are just a few:

a) At the outset of the lease the City will find a half dozen reasons not to pay you the full amount of the voucher, starting with the excuse that another housing voucher recipient across the street is only getting "x" and therefore that's all they will pay for houses on your street;

b) You agree to lease to a tenant with a voucher, but it is "subject to an inspection". The inspector is a no show, despite the fact you took off that day and never saw them at your property. But despite your protest. You go to the back of the line and gave to wait another 4-6 weeks before the inspector can come back. Meanwhile, your unit stays empty for another month;

c) once you get a tenant in, they file a complaint with the housing office because a (as an example) shower knob broke off. Because they never called you, you know nothing of the problem until the rent us due from the city, but you don't get paid. 5-7 days later when you actually get in touch with someone in the housing office you're told (for the first time) of the problem and told you'll get paid, only once the problem is BOTH fixed and inspected by a housing inspector. 4-6 weeks later you get paid, maybe. If you're lucky the tenant will call you first the next time there is a problem and the tenant is not a "pro" who pulls this stunt every month;

d) on the one year anniversary of the lease you get a written notice from the Housing office notifying you that there are too many people who need housing vouchers and the only way the City can accommodate all the needy renters is to drop what they are willing to pay you by 5%-7% the coming year. If you accept, the tenant stays and you make less money. If you reject, you're out of the program. If the tenant holds over, you have to ho to landlord/tenant court to evict.

The main reason put up with all this is because Section 8/Housing Choice will usually pay 20% above comparable rents in marginal neighborhoods for good quality units. In the Better parts of Baltimore you're better off without all the headaches.