Hi All! I have bought my first duplex and going to house-hack it. The unit that is rented will be a Section 8 tenant. I have looked at the HUD fair market rents for the city I bought in, however, I don't understand how I determine what the rent for that property should be. I know that HUD pays x amount for each # of bedrooms. For example, the fair market rent in the area I purchased is $1500 per unit since it is a 3-bed. Is that the amount I charge for rent and include in all my rental advertisements? Average rents in the area I bought in, to non-section 8 tenants, is around $1000-1100. So, that being said, I am confused on how I determine the rental amount. This is my first property purchased!! Any advice is appreciated. Thank you!!
Investor · DFW, TX · Member since 2022 · 198 posts · 161 votes
3y
It would be interesting if Section 8 payments for your area were higher than what you say is average for the same bedroom count for non-voucher holders. You should consult with your local housing authority. In Fort Worth, for example, payment standards are listed here, plain and simple. The rates in that document describe the max you can charge for rent to a voucher holder. Most of them are lower than what you'd charge a non-voucher holder.
In your advertisements, yes, use the total rental rate.
Atlanta, GA · Member since 2013 · 9 posts · 0 votes
3y
I'm not sure about your market, but the housing authority sets the rent based on comps submitted here in Atlanta. I only have one section 8 property and have had good luck on having all my suggested rent increases approved.
It would be interesting if Section 8 payments for your area were higher than what you say is average for the same bedroom count for non-voucher holders. You should consult with your local housing authority. In Fort Worth, for example, payment standards are listed here, plain and simple. The rates in that document describe the max you can charge for rent to a voucher holder. Most of them are lower than what you'd charge a non-voucher holder.
In your advertisements, yes, use the total rental rate.
Your link references 2022 values for Fort Worth. Here are the 2023 FMR's for Fort Worth.
Hi Jevon - that is interesting because someone else sent me a link to view the fair market rents and the one I have been using (and analyzing properties with) is far different meaning the numbers listed for fair market rent are way off. After reviewing the other link, that makes more sense now because the small area fair market rent is $1280 which is much closer to the average rent in my area. I was using a HUD link but the difference is the one with the more accurate numbers is the small area site.
@Kevin L. Awesome, thank you. I am glad you are having a good experience with section 8!
I'm not sure about your market, but the housing authority sets the rent based on comps submitted here in Atlanta. I only have one section 8 property and have had good luck on having all my suggested rent increases approved.
What percentage rent increase did you get every year?