Deal w/sect 8 tenants messing up cashflow opp... - Posted by Tiffany (MA)

Posted by Ben (FL) on March 12, 2001 at 08:55:07:

I was approached by a very persistent Sect. 8 apllicant that wanted to rent one of my apartments. I wasn’t sure, so I went down to the Section 8 office and sat with one of the administrators. Here’s what I think I learned - the section 8 program decides what the market rent is. If you want $495 for your 2/1 apartment, and they think the market is $380, the tenant does not pay the difference between $495 and $380 - they pat the difference between the level of assistance they qualify for and the $380. Now, it is possible that, when you include utilities, the program will pay close to $495, but the utilities have to be paid out of that.

You may, occasionally apply to have the rent raised in a unit $5 or $10 each year to cover cost of living increases, etc, and inflation.

I have 16 rental units that take no more to than a week or two to fill at $460 to $470 per month. HUD says the max rent is $380, So I just say “No” to HUD.

Deal w/sect 8 tenants messing up cashflow opp… - Posted by Tiffany (MA)

Posted by Tiffany (MA) on March 12, 2001 at 07:48:04:

I’m looking at a package deal of 3 properties with a total of 20 units. Gross monthy income of $12,933. 10 units are section 8 rental subsidies (state sponsored) where the tenants pay between $15 and $185 out of pocket. The rents are below market and I’m wondering how and if I can raise rents on sect 8 tenants once getting the property. I see about 6 of them where this would be reseasonable in my eyes but I don’t know about sect 8 rules. Any help is appreciated.


Re: Deal w/sect 8 tenants - Posted by Mark (SDCA)

Posted by Mark (SDCA) on March 12, 2001 at 11:14:18:

Interesting comments. In my area, HUD rents are well ABOVE fair market rent. As to whether you can raise the rent, the other posters are right, HUD will make the determination as to what FMR is. It also depends where in the lease you are, HUD typically requires a 1 year lease.


Re: Deal w/sect 8 tenants … - Posted by Jim Rayner

Posted by Jim Rayner on March 12, 2001 at 10:36:53:


Below you will find the current rates for all of massachusetts for the period 10/1/00 through 9/30/01.

you can not just increase the rents. Your contract with the housing authority requires 60 days notice minimum to either terminate participation or to get the rate raised to the current HUD approved rates. You can charge more than the approved rate however the housing authority will only pay up to the going rate and any difference must be paid by the tenant. The HUD FMR Rates include the cost of utilities except telephone and cable.

For others seeking a easy way to find out your current rates I have set up an online database at

the user name is guest and the password is guest

State: MA
Code: CNTY25001
SRO: 363
Zero: 484
One: 664
Two: 884
Three: 1106
Four: 1239
MHP_PAD: 354

State: MA
Code: CNTY25003
SRO: 290
Zero: 386
One: 469
Two: 553
Three: 758
Four: 908
MHP_PAD: 221

State: MA
County: DUKES
Code: CNTY25007
SRO: 491
Zero: 654
One: 665
Two: 885
Three: 1107
Four: 1242
MHP_PAD: 354

State: MA
Code: CNTY25011
SRO: 312
Zero: 416
One: 515
Two: 659
Three: 826
Four: 997
MHP_PAD: 264

State: MA
Code: CNTY25013
SRO: 315
Zero: 420
One: 572
Two: 763
Three: 1015
Four: 1252
MHP_PAD: 305

State: MA
Code: CNTY25015
SRO: 441
Zero: 588
One: 595
Two: 794
Three: 996
Four: 1114
MHP_PAD: 318

State: MA
Code: CNTY25019
SRO: 557
Zero: 743
One: 996
Two: 1328
Three: 1660
Four: 1858
MHP_PAD: 531

State: MA
Code: CNTY25027
SRO: 351
Zero: 468
One: 488
Two: 650
Three: 814
Four: 910
MHP_PAD: 260

State: MA
Msa: Barnstable Yarmouth MA MSA
Code: MSA0740
SRO: 376
Zero: 501
One: 671
Two: 896
Three: 1122
Four: 1256
MHP_PAD: 358

State: MA
Msa: Boston MA NH PMSA
Code: MSA1120
SRO: 521
Zero: 695
One: 782
Two: 979
Three: 1223
Four: 1437
MHP_PAD: 392

State: MA
Msa: Brockton MA PMSA
Code: MSA1200
SRO: 348
Zero: 464
One: 611
Two: 750
Three: 932
Four: 1063
MHP_PAD: 300

State: MA
Msa: Fitchburg Leominster MA PMSA
Code: MSA2600
SRO: 272
Zero: 363
One: 510
Two: 662
Three: 851
Four: 925
MHP_PAD: 265

State: MA
Msa: Lawrence MA NH PMSA
Code: MSA4160
SRO: 377
Zero: 502
One: 606
Two: 763
Three: 953
Four: 1172
MHP_PAD: 305

State: MA
Msa: Lowell MA NH PMSA
Code: MSA4560
SRO: 383
Zero: 510
One: 659
Two: 796
Three: 997
Four: 1115
MHP_PAD: 318

State: MA
Msa: New Bedford MA PMSA
Code: MSA5400
SRO: 365
Zero: 487
One: 595
Two: 677
Three: 846
Four: 950
MHP_PAD: 271

State: MA
Msa: Pittsfield MA MSA
Code: MSA6320
SRO: 245
Zero: 327
One: 464
Two: 571
Three: 717
Four: 888
MHP_PAD: 228

State: MA
Msa: Springfield MA MSA
Code: MSA8000
SRO: 305
Zero: 407
One: 503
Two: 635
Three: 793
Four: 976
MHP_PAD: 254

State: MA
Msa: Worcester MA CT PMSA
Code: MSA9240
SRO: 338
Zero: 451
One: 546
Two: 681
Three: 850
Four: 953
MHP_PAD: 272

not nearly an expert…but my .02 - Posted by brandon_ma

Posted by brandon_ma on March 12, 2001 at 08:59:38:

I am no expert, but I believe each town/city has section 8 rental figures set. If you call the housing department, they should be able to tell you what they pay for one, two, and three bedroom section 8 apartments. I do not believe you can charge more than those rents to sec 8 tenants. Someone correct me if I am wrong please.

Brandon MA