According to the Federal Reserve, low-income families spend 56% of their income on rent. Therefore, many landlords wonder should they allow section 8 tenants since the cost of renting is too high for people.
You should know as a landlord, there are some advantages to renting to section 8 tenants. But, of course, there are some disadvantages. If you would like to learn more about section 8 rental properties, then continue reading.
What Is the Section 8 Program
Section 8 is a government program offering low-income help to cover the cost of their rent. The Department of Housing Housing and Urban Development (HUD) administers the program.
Also, it is not a part of the public housing program. The section 8 program was created to help those in need of housing and limit the risk of homelessness. For someone to be considered for the section8 program, they must earn 50% less of the local area’s median income.
Why Should a Landlord Accept Section 8 Vouchers
So, should I become a section 8 landlord? You’re wondering is it worth it to start offering a section 8 rental housing list. You might start opening to the idea after reading the advantages of it.
Advantages of Section 8 Tenants
So, what are the advantages of offering renting to section 8 tenets? Below is the list of reasons why you should section 8 rental listings.
- Stable and guaranteed monthly rental payments
- Section 8 rental vacancy rates are lower because tenants stay there longer
- Section 8 landlords can fill properties faster
- You may be able to charge higher rent
- Marketing costs can be lower
Remember, the tenant covers 30% of their rental when it comes to section 8. So you will always receive the government’s part of the rent on time. Also, since HUB knows not too many landlords are willing to accept section 8, they allow property owners to set rental rates higher.
Disadvantages of Section 8 Tenants
Of course, there are some disadvantages to section 8 property management. Below are some things to consider before you decided to open your properties to Section 8 tenants.
- Government red tape
- There’s a 60-day delay in payment from the government after a new section 8 tenant moves in
- There are additional inspections done to be approved to rent to section 8 tenants
- You will still have to go through background and credit checks on section 8 tenants
- Evicting a section 8 tenant is a complicated process
HUD has a detailed guide on what is required when it comes to evicting a Section 8 tenant. It might be a good idea to review this before you get into section 8 rental properties.
Should You Start Offering Section 8 Rental Properties
Now that you know the pros and cons of renting to section 8 tenants, it is up to you to do this as a landlord. You might find section 8 rental properties easier to deal with than regular property management.
If you are looking to start renting to section 8 tenants, contact us today to help you!
