Future of Section 8

[Ron Steele]

Hello

I own a few rental properties in B and C class neighborhoods. I've purchased the properties at low price points so they have minimal debt service. My dilemma is that a good number of them are section 8 rentals. Most section 8 pays a portion of rent and the tenant the other portion.

I'm concerned with what is the future of section 8? If the U.S. decides to cut its budget and eliminate these programs I would be exposed a bit, but I'm priced well enough to where I could significantly reduce rents and still stabilize property for minimal cash flow.

If U.S does keep these programs in place and increase the benefits, because more people would depend on the program then all of our taxes will continue to go up, but I would be on the receiving end of the government subsidy for providing the housing.

Please Advise?

[Rob K.]

Section 8 is already being cut. I have Section 8 tenants that are being told they need two people per bedroom. Even if that means a 40 year old woman and her 16 year old son.

I don't have a problem with it. I think that this gravy train has gone on long enough. I think there will be cuts to Section 8 and I also think it will make the neighborhoods better. I have already noticed in the are of my rentals that I now have higher quality neighbors in some areas. Rents are currently going up. If Section 8 lowers the voucher amounts, the welfare people will just have to go rent in the war zone.