Memphis Section 8

[Michael Hayes]

Question for anyone investing in Memphis and focusing on section 8. I've managed a couple of section 8 rentals before, but I don't believe I was actually maximizing the rent. I'm planning on doing some BRRRR's but with a focus moving forward of accepting housing vouchers. I'm seeing that the HUD fair rental prices are increasing pretty good going into 2024. I never paid attention to this before and only focused on what the rent was for the particular area. When you guys are pricing your rent based on accepting housing vouchers, are you always marketing it based on what the fair market rent is per HUD? And how often is HUD paying 100% of this? Also, does https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2024_code...

[Steven Goldman]

Quote from @Michael Hayes:

Question for anyone investing in Memphis and focusing on section 8. I've managed a couple of section 8 rentals before, but I don't believe I was actually maximizing the rent. I'm planning on doing some BRRRR's but with a focus moving forward of accepting housing vouchers. I'm seeing that the HUD fair rental prices are increasing pretty good going into 2024. I never paid attention to this before and only focused on what the rent was for the particular area. When you guys are pricing your rent based on accepting housing vouchers, are you always marketing it based on what the fair market rent is per HUD? And how often is HUD paying 100% of this? Also, does https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2024_code...

From a lending perspective you should use the fair market rent because that is the formula that lending institutions use. Obviously if the HUD voucher is more than your income will be higher. If you are going to borrow against the property the lenders will use Fair market rent as determined by the appraiser or in place lease whichever is lower. Good luck!