Section 8: An Owners Guide
Section 8 housing is a HUD assistance program dedicated to subsidize housing for low income families and individuals, the elderly and the disabled. It pays a portion of the rent to owner/managers that accept section 8.
Participating landlords must offer reasonable rent, as defined by the Section 8 program. If tenants choose a home with a higher rent than the programs definition of fair market value, the tenant would pay the landlord the difference themselves. Section 8 tenants can also choose a lower cost rental and pocket the difference.
Eligibility
1. Tenant eligibility is based on the total annual gross income and family size
2. It is limited to US citizens
3. Some non-citizens who have eligible immigration status may be eligible.
4. Participating family's income may not exceed 50 percent of the median income for the county or metropolitan area the family chooses to live in.
5. A PHA must provide 75% of its vouchers to applicants whose incomes does not exceed 30% of the median income for the area. A tear sheet is published by HUD for your area.
How It Works
The administering PHA or section 8 agency inspects the rental unit to be sure it complies with HUD quality standards. If the unit meets HUD guidelines and the rent is deemed fair, the PHAs enter into a contract with the landlord to provide housing assistance payments. This contract is in addition to the lease. If the landlord fails to meet the lease obligations, the PHA can terminate payments. The PHA will make two annual inspections. First to be sure the tenant(s) still meet income and family composition qualifications and an annual inspection of the unit to ensure it continues to meet minimum housing standards.
Landlords
Why Do It
Advantages:
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Participating landlords must offer reasonable rent, as defined by the Section 8 program. If tenants choose a home with a higher rent than the programs definition of fair market value, the tenant would pay the landlord the difference themselves. Section 8 tenants can also choose a lower cost rental and pocket the difference.
Eligibility
1. Tenant eligibility is based on the total annual gross income and family size
2. It is limited to US citizens
3. Some non-citizens who have eligible immigration status may be eligible.
4. Participating family's income may not exceed 50 percent of the median income for the county or metropolitan area the family chooses to live in.
5. A PHA must provide 75% of its vouchers to applicants whose incomes does not exceed 30% of the median income for the area. A tear sheet is published by HUD for your area.
How It Works
The administering PHA or section 8 agency inspects the rental unit to be sure it complies with HUD quality standards. If the unit meets HUD guidelines and the rent is deemed fair, the PHAs enter into a contract with the landlord to provide housing assistance payments. This contract is in addition to the lease. If the landlord fails to meet the lease obligations, the PHA can terminate payments. The PHA will make two annual inspections. First to be sure the tenant(s) still meet income and family composition qualifications and an annual inspection of the unit to ensure it continues to meet minimum housing standards.
Landlords
Why Do It
Advantages:
- Owners get rent security. A guaranteed rental income paid by the US Govt
- Mandatory annual home inspections of the unit
- Fair market rental rates
- Strict renter responsibilities defined in the lease addendum
- On-time payments
- Tenants can be removed from the program for damages to the unit or failure to pay rent.
- Increase your pool of available renters. A Waiting list provides landlords with a stream of eligible renters
- Two Contracts: Your standard lease and a Govt contract with HUD.
- Loss of Control: Govt is another party to the tenant landlord relationship
- Rules may be different
- Annual Govt inspections of the unit by Govt inspectors to assure quality housing
- Fair Market Rent is the cap the Govt imposes on what it will pay for your rental unit - you may feel you can get more for the unit
REsourced from www.yourpropertypath.com
You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
Related Articles
How to Rent Your Property Faster
Research your Market
Filling The Vacancy
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