All Forum Posts by: Jeffrey K.

To be honest, I use Section 8 to get highest possible rate. If there is room to increase rent to HUD's fair market rate (FMR) I would increase the rent even if new tenants don't move in. In my experience, section 8 tenants don't usually care about rent increases as they only pay 30%. As a side note, housing authorities will go up to 110% of FMR without necessitating HUD approval. Diane is right though, there may be a limit on family size and FMR is based on bedrooms not number of adults. So if you were expecting a rent increase based on family size, this wont be possible unless they appeal directly to HUD. This will probably take time and is not a guarantee of an increased rate. IMO, if you want to keep the current tenant, the current tenant is responsible/takes care of the place and you can get more rent do it. Thats a win win. As a side note, i believe section 8 security deposit is capped at 1 months rent. You may be able to get more money to insulate yourself against wear and tear, but its probably not going to be a lot.

However, in my area there is a serious lack of section 8 rentals. Therefore, I have found it extremely easy to re rent units. So, this is may be a possibility. However, there is a lot to be said for a good, low maintenance, tentant. 

Yes, so I purchased a fourplex with three out of four units occupied (the fourth was for me to live in.) You can use the current rents as specified in the lease or the rental rates as determined by your FHA appraisal, whichever is lower.

I just bought a four plex with FHA. FHA considers 1-4 units residential, you can even use the current rents to boost your income. Before you move forward make sure that 75% of current rents cover the entire PITI. This is the "self-sufficiency test" mentioned above, and it can really get in the way of closing the loan.