Section 8 question on inherited

[Eric McCarty]

Hey everyone 

I’m closing on two properties.  The first property is a 4br/2br that has a section 8 tenant currently residing in it.  She’s been there for 18.5 years and has been great; needless to say I want to keep her.  The market rent for this property is 1350.  She is currently paying 650.  I don’t know much about section 8 yet, but I do know that she has a voucher for 2br.  So the max I could charge her would be around 850; that’s what the local office told me.  Can I get her to apply for a 3br voucher or even a 4?  She has her grandson living with her as well.  What is the easiest way that I could increase her rent while still keeping her living there? 

 thanks all!!  

Eric

[Cassi Justiz]

In our area, they base the bedroom vouchers off of the current needs. So since it's just the two of them she may not be able to qualify for a higher bedroom count. It's worth trying though! 

Unfortunately, with Section 8 you can only charge what they approve. You have to apply for an increase and they decide what rental rate they will pay. With it being significantly under rented, you should be able to get it up to at least her max voucher allowance if you can provide proof of market rates.  One thing to keep in mind is that even if you and the tenant agreed on her making up the "difference" in rent, you are not legally allowed to collect any additional funds from the tenant without section 8 approval. You also have to honor their current lease and request a price increase at the time of renewal. 

This COULD be different in your area, so definitely double check with your local office. This is based on my experience with Section 8 in my area.