Section 8 HUD Rent Increase Approval Tips - Recourse if Denied

[Harrison Biddulph]

I recently purchased a property that already has a section 8 tenant in place. HUD pays 100% of their monthly rent. Id like to know your experience when requesting a rent increase through HUD. Please note: I understand how HUD calculates fair market rent and I'm within the limit in my area. Moreover, I'm prepared for their yearly inspection.

1. If HUD denies the rent increase request what recourse do you have? I've heard others say that HUD might counter (e.g. you ask for a $100 rent increase which they don't approve but HUD says they'll allow a $50 rent increase). However, if this isn't the case and its simply denied what can be done to prevent you from having to wait another year to request an increase through your local housing authority?

2. Any tips for getting the rent increase approved in the first place? 

Thanks for the help! 

[Jennifer Donley]

Hi @Harrison Biddulph.  I own a portfolio of S8 properties in the St Louis area and teach other investors how to maximize the niche.

There isn’t a straightforward answer here unless someone from your county can respond because every PHA operates differently on how they set and increase rents. I work with 2 here.  One is very easy to get increases from, one is not.  For the one that isn’t, the first time I had an increase denied, I politely thanked the person for their time and help and asked what the process was to escalate/appeal the decision.  Then I followed the process (it includes sending at 3 rent comps for similar units within a half mile) and followed up over and over until I got it.

Good luck.