3 times income to rent for section 8/vouchers?

Question

I've read you should require 3 times the income for your rental price.

Do you apply this to section 8/HCV?

Or do you submit each application and see what the government will pay you and go from there?

If their voucher covers their rent, you can still make them pay for their utilities?

thanks

Dennette A Green · Answer

How is it legal to deny someone who has a voucher a place if they meet the requirements to move in? On what basis would the denial be if they have met the requirements and still denied because they don’t make the actual amount of someone who does make three times the rent? That is discrimination based on a prospect being on a low income program, especially when they’re rejected to let someone who makes much more money rent instead of someone who is struggling to find a place because of financial difficulties! If Hud  is paying their portion, they’re going to get their money from the tenant, and if they don’t pay their rent, it’s out they go, just like anyone else! At least with the voucher, the landlord isn’t out thousands of dollars, since a voucher holder couldn’t get that far behind in rent without violating their Hud contract.

Dennette A Green · Answer

Keep in mind that not every one who receives housing assistance is lazy, dirty, trouble, or destructive. It would be good to meet the tenant at their current residence before they are approved to see how they live. It would reassure you that you’re renting to someone who will keep your place in good condition. I am one of those people!😉

Rose Carter · Answer

Update in 2022. I’ve seen where it looks as if Jennifer from LA has answered this question correctly. Yes, to be correct housing vouchers cover majority of the tenants rent. As tenants are not supposed to pay more than 30% of their income in bills and 40% being the most they could pay in bills after a year! So for example if a tenants income is $100 every month the tenant would pay a portion of $30 directly to their landlord ( the rent portion is also known as the Total Tenant Payment- TTP ) which goes directly to the landlord from the tenant, and the housing choice voucher would cover the remaining $70 to the landlord monthly. If a tenant is looking to rent from an apartment community, realtor, or private owner and the income requirement is 3*s the rent the correct way to calculate the tenants 3*s the rent would be 3*s their Total Tenant Payment ( TTP ) in this case, if the tenants portion is $30, the tenant would be responsible for showing proof of income in $90 monthly! This is the correct way to calculate the tenants income requirement as tenants are not responsible for what the housing voucher would pay, or what the asking rent amount is. The tenant is only responsible for their portion. Please keep in mind that you can’t require the tenant to make 3*s the original asking rate, or even 1 or 2*s the original asking rate because many voucher holders are considered as low- mid income and don’t have the proof of income to show for the full asking rent amount which is why they are approved to hold a voucher. Anyone who has a voucher could be on disability, making minimum wage, or receives government assistance. This is why we don’t require voucher holders to make the original asking rent price. Vouchers will ALWAYS cover the rent, even if the tenant has lost wages, or loses their income for some reason. Section 8 housing vouchers will assure the entire rent amount is paid monthly as we are aware that things in life happen. I find that income requirements to be approved for a home is one of the biggest misunderstandings when it comes to working with housing vouchers, so yes to best answer your question to calculate income requirements please calculate 3*s the tenants portion. If your property requires 1* the rent or 2*s the rent, you would only calculate the tenants portion not what the asking rate of rent is, or not what the voucher would cover monthly. Lastly, by law this is not discriminating and a landlord can not be sued for having different requirements for tenants that hold housing vouchers because the individual holds a housing voucher, if they didn’t hold a housing voucher that would then be a different call. I hope this helps. Thank you.  

- Supervisor Of A Housing Authority.

Kim Banks · Answer

I’m experiencing this now was denied an apartment because of the 3 times the rent rule. I’m disabled and have a HCV here in Louisville Kentucky with LMHA is there anything in writing about this from HUD. I thought they were supposed to apply that rule against my portion of the rent TTP and do the 3 times the rent with that being that I’m not responsible for the full rent. Please advise

Patti Robertson · Answer

I require one times the rent for a voucher holder.

Karen O. · Answer

Definitely not for everyone. And you can't trust the applicant to know the rules (had one today want a 3bdrm for 7 people - S8 won't approve them except for a 4Bdrm, max 2 per room, plus children can't share with adults unless under 2, etc).

Jane S. · Answer

S8 is def not for me! I need to see the cash for full rent/sec dep immediately!

Matt Bailey · Answer

@Karen O. holy moly what a process

Karen O. · Answer

Somewhat. You set the rent, take apps and if you approve someone with a voucher AND they pay you the security deposit (in full, I recommend) to hold it, you then wait until you get inspected (here, 2-3 weeks, I've heard some areas can be a couple of months), then schedule the lease signing (about a week here; again, longer in some areas) and on that day, provided the applicant has turned on utilities in their name (a Section 8 requirement, here, as well as mine) and has their money order ready, you sign lease and hand over keys (and sign lease and paperwork with Sec 8). Sec 8's portion starts paying at end of month following the current one (it takes them a while), but includes catch-up amounts. The tenant is responsible to pay their own on the 1st of following month and there-after. The portion they pay can change at any time (you'll get a letter in the mail), so you have to keep up with it. That also means amount S8 pays can change up or down - I've had tenants go to nearly nothing, lose job and be back at full rent paid for them - the danger at this level is that they have to keep up their utilities, too, with no income, so again, you have to keep an eye on the property, esp in winter.

There may be a question as to whether S8 will pay what you want, as well - they call other landlords with similar properties in your area and look at other units in a multi, to see if what you are setting is truly market rent (if below S8 max, you can't just charge S8 max, only "market") and some people in this position think they can badger you into a low amount, since at this point in the process, you've been inspected, approved, etc, and are often a few weeks with the unit off the market and no rent coming in yet. So, you have to be pretty sure of the rates you set.

You can guess, I suppose, why some landlords no longer want to deal with S8 -- attempting to force landlords to take it won't work, as many will just set short holding times and non-refundable holding fees that any S8 voucher holder will hopefully refuse to pay, as it isn't a short process.

I have several S8 tenants, they are pretty good, pay on time, take care of the place, etc. I've had others in the past that have had to be evicted, for various reasons, just as with other tenants; the prospect of losing a voucher isn't sufficient motivation for some to pay on time, care for the premises or not try to move in the drug dealing boyfriend or the violent baby-daddy that breaks windows throwing hammers (that one broke her windshield, too). So, you do need to screen for behavior, as well. When you get a good one, tho -- my oldest S8 lease is around 20 years, I think.

3 times income to rent for section 8/vouchers?

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