The Section 8 process - the Good vs the Bad

[Yakini Pierce]

Hi Everyone! For those who used the Section 8 process, can you tell me the good and the bad of using this option when you are renting out your home?

[Patti Robertson]

SEC 8 MISCONCEPTIONS

• SEC 8 tenants are all users who are cheating the system.
• SEC 8 tenants “tear up” properties.
• The SEC 8 inspections are onerous.
• SEC 8 doesn’t pay market rents.
• SEC 8 tenants live for free.

SEC 8 REALITIES

• SEC 8 tenants have to have a job unless they are disabled.
• No adult on the SEC 8 lease can have a drug or felony conviction.
• When a SEC 8 tenant gives their landlord notice that they plan to move, SEC 8 sends a form to the current landlord giving them 10 days to respond saying the tenant is or is not in compliance with their lease – IE – owe any money for rent or repairs. If they do, and the landlord responds within the 10 day allowance, that tenant’s voucher can get placed “on hold” until compliance is made with the current landlord.
• If a SEC 8 tenant has an outstanding landlord judgment, HUD will not reissue their voucher so they can move until the judgement is satisfied or a payment plan has been agreed upon.
• SEC 8 tenants are educated in the process of home inspections and are quick to call if they see a problem that may compromise the house, such as a water leak.
• In most markets, SEC 8 pays “market rent” based on comparable non-SEC 8 units that have rented in the same city within a 5 mile radius, within the last 6 months.
• After the first 12 months, SEC 8 will consider a reasonable rent increase, regardless of the lease term.
• SEC 8 tenants almost always pay a portion of their rent. SEC 8 sets their subsidy based on the premise that the tenant can spend 30% of their income on rent and utilities.

There is SO much more, but one’s fingers can only do so much typing.  LOL People ask this question VERY often on BP.  You can search any key term to pull up the old posts.  To save myself from typing the same thing over and over, I wrote a blog about SEC 8 that contains lots of tips that you can find here. Patti’s SEC 8 Blog Post