Looking to Buy: Section 8 Rents Below Market, Springfield Mass

[Marco Fontana]

I'm looking to purchase my second rental property in Springfield, MA. Currently looking at a 3 family in a C/C- area. My plan coming into this area was always to transition to Section 8 tenants. The property I'm looking at already has two Section 8 tenants, but the rents they pay are below the fair market rent for the area. HUD fair market rent for a 3 bed is $1,404. Current rents of the two 3 bed units are $1,250 and $1,000. The units aren't in amazing shape, but probably a paint job and some minor repairs away from being good shape for the area.

My question is, why would the two section 8 units be so far below FMR? Is it possible the current owner just hasn't gone back to the housing authority to request a rent increase? At least one of the tenants is less than a year old. If this is the case, when I buy the property, can I go right to the housing authority and request to raise rents to the FMR with the current tenants in place? The property is okay/not so good deal with current rents, but if I can raise all to FMR, it's a great deal.

Very curious on the process of inheriting Section 8 tenants and the success in raising their rent closer to FMR, without having to put in new tenants