Section 8 HUD pricing

[Rodger Fore]

After listening to this weeks podcast, it opened my eyes to Listing a rental with Section 8 housing.  Here in San Antonio, I found that the San Antonio Housing Authority (SAHA) breaks down pricing by the zip code and the number of bedrooms.   I only found pricing up to a 4 bedroom.

1. Is there another pricing chart when dealing with 5 or mor bedrooms?

2. If you fix up any house as nice as a flip in a certain zip code, can you automatically rent it for the highest Fair market rent listed for that zip?

3. What does local HUD look for when confirming your rental rate?

If anyone has any experience with SAHA I would love to hear from you.

Thank you for your time.

[Patti Robertson]

The number you see on the chart includes total housing budget, which is rent plus utilities. Your building will also dictate budget.  The older it is, the lower they will pay.  The bigger it is, the lower they will pay.  The more exposed walls, the lower the budget.  The more items that require gas or oil the lower they will pay. All of these are because of the estimate of the utility budget that will be subtracted out of the total housing budget.  The more utilities will be, the less money is left for rent.  

Also very pertinent is finding a tenant with enough income to make the rent you are asking for “affordable”. I require a SEC 8 tenant to have a minimum of one times the rent in verifiable, reliable income.

In my market, SEC 8 pays about $250 less than what the HUD chart says - that's the amount they allocate to utilities.