4 unit multi-family deal advice involving one unit section 8

[Keith A.]

I'm looking at a multi-family deal involving 4 units. All units are rented but one of them is rented much higher at section 8. Three are about $800 per month and the section 8 is at about $1000.

When doing the income analysis should I include that section 8 unit at it's rented price or assume it would rent normally at the $800? Logically it would make sense to use the normal rented price in case of a vacancy but thought to ask in case there is a common practice in this situation.

I'm trying to go after minimum 15% CoC returns so this would affect the price.

[Don Konipol]

Section 8 are rented higher because these tenants on average do more damage and require higher maintenance, as well as tend to chase non section 8 tenants away. So you could either add $200 month to your expenses, or subtract $200 month from the rent.

I have found that as to apartments, having all sec 8 tenants in a complex or no section 8 tenants at all is best. mixing the two does not seem to work.