Housing Choice Voucher (section 8 housing)

[Dana Kennedy]

Considering purchase in Georgia market that is currently rented as Section 8.  What are the pros and cons of this type rental? Are rentals taxed the same or differently? Any guidance much appreciated. 

[Ty Coutts]

Hey @Dana Kennedy, great question!

Obviously there is a lot to discuss on this topic, but for a very quick glance, here are a few pro's and con's to consider when thinking about section 8 rentals:

Pros:
Guaranteed Rent Payments -> The government pays a significant portion (if not all) of the rent directly to the landlord, providing a reliable and steady income stream.
High Demand -> There is often a high demand for Section 8 housing, reducing the risk of long vacancy periods.

Cons:

Inspection and Compliance -> The property must pass an initial inspection and comply with health and safety standards set by the local housing authority. This can mean additional costs for repairs and maintenance to meet these standards.
Administrative Burden -> There can be significant paperwork and administrative work involved in maintaining compliance with Section 8 requirements.

Please reach out to me directly if you want to go deeper into the subject, especially on the financing/loan side of things! Hope this helps!

[Andrew Syrios]

Pros: More likely to get rent paid, in some areas in makes it easier to lease 

Cons: Tenants are more often difficult (although there are plenty of good Section 8 tenants), the inspections can be annoying and (oftentimes) the bureaucracy can be really arduous to deal with. Here in KC, it's awful (don't return calls, take forever, often pay late and of course don't pay late fees, etc.)