The section 8 voucher pays $1,550 per month to 3 bedroom properties according to the Cuyahoga Metropolitan Housing Authority.

I recognize that this a very subjective statement. 

Even though it is not accurate in all markets, recognize there are markets worse and better than 50% rule and be able to justify any discrepancy.  

. • The requesting person is the property owner or authorized agent of the property owner. • The real property that is being occupied includes a residential dwelling.• An unauthorized person or persons have unlawfully entered and remain or continue to reside on the property owner's property.• The real property was not open to members of the public at the time the unauthorized person or persons entered. • The property owner has directed the unauthorized person to leave the property. • The unauthorized person or persons are not current or former tenants pursuant to a written or oral rental agreement authorized by the property owner. • The unauthorized person or persons are not immediate family members of the property owner. • There is no pending litigation related to the real property between the property owner and any known unauthorized person. 

A few things to keep in mind:Section 8 requires the property to pass an inspection based on HUD’s Housing Quality Standards (basically making sure it’s safe and well-maintained).The rent you charge has to align with Fair Market Rents (FMRs) in your area, so it’s good to check what similar properties are renting for.You’ll still be responsible for maintaining the property, but the upside is that a chunk of the rent is guaranteed by the government, which can provide steady income.Check with the local housing authority about any specifics for your area—every jurisdiction does things a little differently.This could be a great niche if you can find a good deal on the land and make sure your expenses (like maintenance, insurance, and occasional vacancies) are covered by the rental income.

And also where it would be tough to learn the industry over one or two deals because the deal time-frame is so long (I could make mistakes that I didn't recognize until 5 years into the deal).In this case, we're talking about notes.

If you consistently analyze properties, recognizing a good deal will be much easier when it shows up.

If you get a section 8 tenant the authority will need a closet and outlets as well as the egress you mentioned.

Just wanted to chime in from a tax perspective, something to keep in mind and plan to have some discussions with your CPA:Using the property for personal use during the year will prevent you from recognizing some expenses on your property.

If it is in San Diego, it will likely be a sophisticated value add and not passive.So if you house hack a local property at high LTV, recognize it will cost you significantly more than renting a similar unit.