Section 8 voucher limits

[Joseph Rios]

Hello BP Community,

I have a tenant who lost her job and recently got approved for section 8. She was only approved for a 1-bedroom apartment and the rental unit I'm currently renting to her is a 4-bedroom (she lived with other family members but they all moved out prior to COVID). I've been helping her look for a 1-bedroom apartment however there is shortage of 1-bedroom apartments in the area and the only ones available are either above the voucher limit or require income verification. I am closing on another 2-family property soon (around this area) which I'm planning to hold, it is made up of Two 2-bedroom apartment units. I was hoping of maybe moving my tenant from the 4-bedroom apartment to one of the 2-bedroom apartment units in the new house, however that would mean taking a loss since the voucher is for a 1-bedroom apartment unit instead of a 2-bedroom.

My question is, could section 8 increase the voucher limit to reflect that of a 2-bedroom apartment? or would she be allowed to make up the difference if section 8 cannot increase the limit?

[Amy Davidson]

In the greater Tampa Bay area I've seen that Section 8 will often pay more than I would ask for on the free market.   Have you verified the rate Section 8 will pay for that one-bedroom Section 8?    There is a small chance that it would be comparable to the Fair Market 2 Bedroom rate.   

I don't know how familiar you are with Section 8, but they often require the tenant to pay a portion of the rent.  It's also worth checking in advance to see what portion Section 8 will cover.  If they're paying 100%, you're guaranteed to get full payment every month which may also make it worth receiving slightly less initially.  

One last point, with my Section 8 tenants I haven't had any issues with yearly rent increases of 5%+ even during Corona.   I just fill out the one-page request at least 2 months before the end of the lease, they ask no questions and just increase the payment amount.  

Pros and Cons to mull over.