Section 8 sets rent prices; Are they negotiable?

[Daniel Parrella]

Hello everyone! So I'm working my way through my first deal (which I'll make a post about in the near future, discussing all of my mistakes and successes.... Mostly mistakes 😂), and one thing we've decided to try is Section 8. What I've found is that our local housing authority, does an inspection and then determines how much they will give for the unit in rent. What we've also found, is that the rent they offered is quite a bit lower than what we could get for the unit with a non section 8 tenant. They also will not allow the tenant to supplement the rent out of their own pocket. Does anyone have any experience in similar situations? Is that amount negotiable? Any input is welcome, thank you all for reading!

[Richard Sherman]

@Daniel Parrella   We have around 15 units that are section 8, my experience is that they are typically near the market for the same types of property sometimes a little low, but not bad, you can also increase each year.  I imagine it does vary by market.  It might be worth going to the local housing authority and talking to them, get their market rates for each type of property and see if that makes sense.