All Forum Posts by: April Adams

In the S8 world this is called Reasonable Rent. 

HUD allows PHA's to conduct a FMR survey and redetermine the rent at anytime.

If the FMR don't support the current rent you are receiving they can 'ask' you to reduce the rent. If you don't, the tenant will have to vacate your unit to find a unit that meets HUD guidelines on affordability.

If the tenant moves, now you have a vacancy and you will have to find another tenant. If the new tenant is on S8, the PHA will use the new lower FMR to make a rent offer to you.

So, basically, there is no way around having a lower FMR affect you. Your true decision is, do you want to keep your current tenant or not.

Many landlords participating in the Section 8 Housing Choice Voucher Program are unaware that they may be entitled to late payment penalties if their first Housing Assistance Payment (HAP) is delayed. Under federal guidelines, specifically HUD Form 52641—the Housing Assistance Payments Contract—landlords have the right to collect late penalties from the public housing authority (PHA) if the initial HAP is not paid within a timely manner.

Let’s break it down: once a Request for Tenancy Approval (RFTA/RTA) has been submitted, the unit has passed inspection, and the contract is executed, then the tenancy officially begins. According to the HAP contract, Section 7(a)(3), ‘If housing assistance payments are not paid promptly when due after the first two calendar months of the HAP contract term, the PHA shall pay the owner penalties’. Late penalties must be legal in your jurisdiction and customary in your business practice and the amount is included on the lease.

In simpler terms, if your contract started on April 17, 2025, the PHA has until June 17, 2025 to issue that first HAP. If the payment is not received by then, you may request a late penalty—just as you would from a tenant who pays rent late under a private lease agreement. This applies for each month that the HAP becomes more than 2 calendar months old.

Unfortunately, many landlords leave these funds unclaimed, either because they’re unaware of the rule or too overwhelmed with other property management tasks. This rule is a crucial protection for landlords who are often burdened by delays that are outside their control. It’s also a provision that many owners either forget or simply don’t know exists. The local statute of limitations may apply.

Hi Ben.

I would focus on verifying proof of payment history and past inspection reports. I'd definitely have a conversation with the previous 2 landlords. 

And HUD requires the housing authority to provide the new potential landlord with the name and contact information of the current and previous landlords.

Many landlords participating in the Section 8 Housing Choice Voucher Program are unaware that they may be entitled to late payment penalties if their first Housing Assistance Payment (HAP) is delayed. Under federal guidelines, specifically HUD Form 52641—the Housing Assistance Payments Contract—landlords have the right to collect late penalties from the public housing authority (PHA) if the initial HAP is not paid within a timely manner.

Let’s break it down: once a Request for Tenancy Approval (RFTA/RTA) has been submitted, the unit has passed inspection, and the contract is executed, then the tenancy officially begins. According to the HAP contract, Section 7(a)(3), ‘If housing assistance payments are not paid promptly when due after the first two calendar months of the HAP contract term, the PHA shall pay the owner penalties’. Late penalties must be legal in your jurisdiction and customary in your business practice and the amount is included on the lease.

In simpler terms, if your contract started on April 17, 2025, the PHA has until June 17, 2025 to issue that first HAP. If the payment is not received by then, you may request a late penalty—just as you would from a tenant who pays rent late under a private lease agreement. This applies for each month that the HAP becomes more than 2 calendar months old.

Unfortunately, many landlords leave these funds unclaimed, either because they’re unaware of the rule or too overwhelmed with other property management tasks. This rule is a crucial protection for landlords who are often burdened by delays that are outside their control. It’s also a provision that many owners either forget or simply don’t know exists. The local statute of limitations may apply.

Landlords often misunderstand the difference between eligibility and suitability. This confusion can lead to significant challenges and frustrations. It's crucial for landlords to grasp that while the Housing Authority screens for income eligibility, they do not screen for tenant suitability.

The Housing Authority's primary responsibility in the Section 8 program is to determine whether an applicant meets the eligibility requirements. This process involves verifying that a family’s income falls within the specified limits to qualify for housing assistance. Housing Authority's also verify their assets, and family composition to ensure that only those who genuinely need financial help are granted vouchers, but they do not assess whether the family will be good tenants.

The Housing Authority’s involvement does not extend to assessing the suitability of the Section 8 family. Suitability encompasses various factors beyond income. Suitability refers to the likelihood that a family will meet the obligations of the lease, including paying rent on time, and taking care of the property. Evaluating these aspects of the family is the landlord's responsibility, necessitating a comprehensive tenant screening process.

One of the most overlooked yet critical components of tenant screening is verifying the family’s payment history. Landlords should request payment ledgers or obtain rent payment receipts or bank records covering at least the prior 6 months. This verification process helps confirm whether the prospective family has a history of making timely rent payments. No matter what their monthly portion, verifying the family’s payment history is vital as it provides insight into their reliability and financial responsibility.

Understanding the distinction between eligibility and suitability is crucial for landlords participating in the Section 8 program. The Housing Authority’s role is limited to determining eligibility based on income, leaving the responsibility of screening for suitability squarely on the landlord's shoulders.

As you may know, effective January 1, 2025, the Section 8 voucher payment standards (VPS) in many zip codes in the City (and County) of Los Angeles were reduced. The Department of Housing and Urban Development (HUD) relies on comprehensive statistical data to determine the fair market rent (FMR) for regions across the U.S. Until recently, HUD approved the Housing Authority of the City of Los Angeles's (HACLA) request to set their VPS at 120% of the FMR. For example, in 2024, HUD set the FMR for a 1-bedroom unit in Los Angeles at $2,006, while HACLA's VPS for the same unit was $2,407—$401 above the FMR. This higher VPS was designed to incentivize property owners to participate in the Section 8 program.

However, with the recent designation of source of income (SOI) as a protected class under California state law, HACLA no longer needs to provide this incentive. Property owners are now prohibited from discriminating against potential tenants based on their use of rental assistance, such as Section 8 vouchers and security deposit assistance.

The previous higher VPS levels were part of a strategy to ensure HACLA could fully utilize its voucher allocations from HUD. By utilizing more vouchers, HACLA maximized its earning potential in administrative fees from HUD. In 2023 the Los Angeles Mayor said, "This coordinated action to raise the value of the vouchers is a major step toward bringing more people inside into permanent housing." However, this approach inadvertently led to rising rental costs, which contributed to many non-Section 8 tenants being priced out of the rental market in Los Angeles. It is frustrating to see how easily these higher rent levels have been tethered to property owners, when they were part of a broader strategy designed with specific intentions in mind.

I Can't Believe This Is Happening

Hello, Bigger Pockets community! Although I’m not new to this fantastic platform, I have some exciting news to share. After a rewarding 20-year career as a Section 8 supervisor, I’ve transitioned into a new role that I’m passionate about. I am a property owner myself and now the proud founder of RentWiseLA, a company dedicated to helping property owners navigate the complexities of the Section 8 program, especially when it comes to lease-ups and rent increases.

Having spent years in the trenches, helping owners fill their vacant units with Section 8 families, I’ve always taken pride in educating property owners about the ins and outs of Section 8. But as I focus exclusively on representing landlords in their interactions with Housing Authorities, my perspective has shifted significantly. I see firsthand how crucial it is for owners to stay vigilant and informed about how their rent is calculated—both during initial lease-ups and at the time of rent increases.

I can’t believe this is happening, but I’m here to ensure you receive the rent you truly deserve. 

I work for Section 8 in California. Housing Authority's only screen for eligibility for the program. Basically, income and criminal history. They are very lenient with the criminal. You need to do your own background check. Be sure to check for payment history and housekeeping. Credit score doesn't give a complete picture in regards to Section 8 tenants. It's primarily payment history and housekeeping. Ask the previous LL if they'd rent to them again, did they pay their rent on time and did they leave the unit damaged? You will collect a portion of your rent from Section 8 and a portion from the tenant. Enforce your lease. Hope this helps.