Detroit Housing Commission Section 8 System

[William Burns]

Hi BP Community,

Has anyone here had experience investing in Detroit with Section 8 tenants? Is the program really as problematic as it’s been portrayed? Any insights from your experience, whether positive or negative, would be greatly appreciated.

The attached link explains the current situation with the Detroit Housing Commission (DHC), highlighting that they are severely understaffed and have limited communication with both tenants and landlords. Some landlords report that it regularly takes around six months to start receiving direct deposits from the government. The article quotes: "The DHC regularly takes many months to initiate payments or approve rent increases and rarely responds to landlords’ messages." Additionally, some landlords are still waiting on over $5,000 in payments from the program.

This market is right in my backyard, and it seems like a good place to start, as I can afford to buy homes in the $65,000–$80,000 range and am familiar with the area. The numbers for investing in Detroit look promising, but I am hesitant to proceed with purchasing a property and accepting Section 8 tenants due to the long delays in rent payments.

There are many Section 8 voucher holders looking for homes, and many tenants have shared horror stories about their previous landlords. I want to be a part of this market because I know I can offer tenants a well-maintained, up-to-code home. However, the idea of running a rental business while waiting six months for payments especially with bills still coming in doesn’t seem sustainable.

Can anyone speak from experience in the current market? Was the risk worth the reward in your situation?

- Attached below is the same link in the header

https://outliermedia.org/detroit-section-8-housing-vouchers-...