Section 8 Question: Rent Guidance

[Christian Onalfo]

Hello Everyone!

I have a quick question in regards to section 8. To anyone who has experience in renting out to section 8. I'm looking to get some SFH and do section 8. My question is how do you guys manage to find what the rents will be for the section 8 tenants. I know that they have their own scale of grading and setting market rents. Is that through a comparison of what the market is around and what the comps are like? I've been told that in some cases they end up getting more through section 8 and in other cases they make less. Would love to have some advice and hear what some of you might do to get accurate numbers so that you are not surprised when you are analyzing a deal and making sure it cashflows.

Thank you

[Abel Curiel]

Hello @Christian Onalfo,

The section 8 voucher amount will depend on the utilities being paid for by the landlord. If the landlord is paying heat, cooking gas and electric, the voucher will be higher. If the tenant will be responsible for these utilities, the voucher amount will be lower. Section 8 program recipients should have a letter or voucher - this will be the most accurate way to find out rental amounts from Sec 8.

Voucher values increase from time to time so our best source for this information has been through connecting with local Section 8 and City Fheps program coordinators. Not sure how difficult it would be to make these types of contacts in your market but you may have some luck on affordablehousing.com (formerly gosection8.com). 

Best of luck to you on this!

Abel