Section 8 Experience in Memphis

[Thien Tran]

Hi everyone - I was wondering if any investors or PM have experience with renting SFH to Section 8 tenants in Memphis. Do you mind sharing some of your experiences, pros/cons, etc? I have some interest from section 8 tenants in one of my rentals but have not had any prior experience leasing to section 8. Just wanted to get an idea of how these things typically goes in Memphis before making a decision. I'm also curious to know if anyone has ever evicted a Section 8 tenant before and if that is any more rigorous than usual? Thanks in advance for your input.

[Lisa S.]

Hey @ThienTran,

I'm in Georgia and do not have any experience how your state is with Section 8 tenants but I can give you a little background in my experience with renting to Section 8 tenants.

I agree with @Curt Davis you do want to make sure that the voucher covers the full rental amount and it is the allowable size of the home. Also, request the applicant provides proof of what their rental voucher amount allowance is.

It is always a great idea while processing the application to reach out to their case worker confirming all information. Share with the case worker the applicant name, property address, rental amount, and size of home. Most case workers will confirm or share with you that their voucher does or does not cover it.

If the Section 8 application is approved by your application criteria, in Georgia the case worker will then schedule for a property inspection. The home must pass the inspection per their guidelines for tenant to move in and payments to begin. They will also ask for a copy of the signed lease agreement.

There are yearly inspections. In order for payments to continue the home must pass inspections. If it does not pass there is a time frame to correct the items. If not corrected during that time frame payments will not continue nor do they back pay if items are corrected after the time frame. They just reschedule an inspection and pick back up with rental payments.

Definitely want to make sure your lease agreement is clear on what the tenant responsibilities are with maintaining the home so you are not stuck with fixing all the items the inspector may discover at time of yearly inspections. Put some of the responsibilities on the tenant. 

In some situations the tenant may be responsible for their own portion. For example: Rental amount $1250. Tenant is responsible for $450 and the assistance of the program will pay the rest. 

With Section 8 tenants there is just a little more foot work in getting them approved and the yearly inspections. I have had great Section 8 tenants and I have had not so great Section 8 tenants. 

As far as eviction, in Georgia it is no different than evicting a tenant without government assistance. The steps are the same. Most likely you will be filing dispossessory on the tenant for not paying their portion because for the most part government assistance pays the rent and on time. 

It is really just a decision if you would like to rent to Section 8 tenants and follow their guidelines. Definitely take some time to research the process and if it is something you are interested in doing...Dive in. If after trying and it is something you feel is not really your lane, you can choose not to rent to Section 8 tenants in the future. Totally up to you. You never know until you try.

Hope this helps and good luck!