Section 8 - Posted by Deb Van

Posted by Deb on June 03, 2007 at 11:02:38:

Thanks for all your help. Here’s the paragraph on the hud website that let me to believe the tenant must pay the difference between the standard Hud sets and the actual rent set by the landlord. Am I reading this wrong?
The PHA determines a payment standard that is thamount generally needed to rent a moderately-priced dwelling unit in the local housing market and that is used to calculate the amount of housing assistance a family will receive. However the payment standard does not limit and does not affect the amount of rent a landlord may charge or the family may pay. A family which receives a housing voucher can select a unit with a rent that is below or above the payment standard. The housing voucher family must pay 30% of its monthly adjusted gross income for rent and utilities, and if the unit rent is greater than the payment standard the family is required to pay the additional amount. By law, whenever a family moves to a new unit where the rent exceeds the payment standard, the family may not pay more than 40 percent of its adjusted monthly income for rent.

The rent subsidy
The PHA calculates the maximum amount of housing assistance allowable. The maximum housing assistance is generally the lesser of the payment standard minus 30% of the family’s monthly adjusted income or the gross rent for the unit minus 30% of monthly adjusted income

Tenant’s Obligations: When a family selects a housing unit, and the PHA approves the unit and lease, the family signs a lease with the landlord for at least one year. The tenant may be required to pay a security deposit to the landlord. After the first year the landlord may initiate a new lease or allow the family to remain in the unit on a month-to-month lease.

standards and be maintained up to those standards as long as the owner receives housing assistance payments. In addition, the landlord is expected to provide the services agreed to as part of the lease signed with the tenant and the contract signed with the PHA.

Housing Authority’s Obligations: The PHA administers the voucher program locally.

Section 8 - Posted by Deb Van

Posted by Deb Van on June 02, 2007 at 13:37:16:

I searched the archives for this topic but too many of the pages come up as “not available”. I am looking to purchase some properties in Ohio and was wondering how a home gets to be Section 8 so you can rent to those who have vouchers. Is there an application process? I’d also like to know if any of you have done this and what your experience has been.

Ohio is affordable for me, you can pick up a house that’s ready to rent for 15k. I plan to pay cash and get some + cash flow going, rents go for 400-500/mo in that area. This seems to be a good investment. What do you all think? Let me know if you think I’m being too naive.


Re: Section 8 - Posted by Mark (SDCA)

Posted by Mark (SDCA) on June 03, 2007 at 11:24:25:

Agreeing with all that has been written. Here is my .02.

Remember that Sec 8 is a FEDERAL program but it is administered LOCALLY. In other words, your local housing authority office (caseworkers, inspectors etc) have A LOT of influence. And there ARE no administrative appeals. If your local office is incompetent they can be basically impossible to work with.



Re: Section 8 - Posted by seldon

Posted by seldon on June 02, 2007 at 15:16:43:

call your local housing athority and they will send you a landlords packet explaning all phases of getting into the system.its really easy to get a home HUD aproved, basicly it boils down to health and safety issues for the inspection.Almost all my rentals are now section 8 and I am quite comfortable with the whole program as tenant pay only a small portion of the rent and tend to stay in one place for longer periods of time because of the lack of this type of housing in my area(WV).I also have a huge lever to make them comply with all the lease terms (including timley rent co-payments) because if they get evicted for any reason they lose all benifits and have to re-apply,even if reinstated the waiting list for vouchers is about 10 months so I have far less trouble out of these people than those that pay thier own rent.biggest downside is that HUD pays about 15% less than market rental but if you have bought right (and it sounds like in your area you can)it wont be a problem to take a little less. S

Re: Section 8 - Posted by Deb

Posted by Deb on June 02, 2007 at 15:41:58:

Actually, I live in NC, but want to purchase in Ohio. I will call their local housing authority and ask for the landlords packet. One question, I thought what HUD doesn’t pay is paid for by the tenant. Is that not correct?

Some More Thoughts - Posted by Jimmy

Posted by Jimmy on June 03, 2007 at 06:35:38:

I’ve had Section 8’ers in my units for about 7 years. the other answers you got were accurate. here are some other stuff to consider:

  1. there could be more than one housing agency covering your area. find out. they often overlap.

  2. some agencies have a bulletin board or list in their office where available rentals can be listed. if so, make sure you are on it. when you put signs out or post newpaper ads, make sure to say “Sec 8 welcome.”

  3. NEVER put yourself in a position where you depend on the agency for tenants, or for your desired rent. if the only way you can get $800 rent for a 4/2 is through the agency, and real market rent is $650, you need to acquire the property assuming the $650. and if you are in an area where almost all the tenants are on assistance, and almost no “regular” tenants live, stay away. Here’s why: you become a welfare baby. and you cannot control the availabilty of tenants and vouchers. I used to get 50% of my tenants and rent from housing. Now, its more like 13%. for 2-3 years, there were no new vouchers issued in my area. and since you can’t control what Congress does with HUD funding, don’t put yourself in a position of dependence. make sure your properties are in areas attractive to different kinds of tenants (elderly, working class, S8, etc.)

  4. Good News and Bad News about tenants on big vouchers (e.g., 100%). the bad news, in my experience, is that these are some of the most irresponsible people you will ever encounter. expect them to be thoughtless, welfare-minded morons who will not think twice about trashing your place. the good news is this: a tenant on a big voucher will do almost anything to protect it. its an “asset” to them, and they cannot live without it. you can sue this tenant in small claims court for damages and ANY back rent. and the tenant will have to pay you, or they lose the voucher. I have a lady paying me $30 a month for the REST OF HER STINKING LIFE. all I have to do is call her case worker is she is late, and I get my money order muy pronto.

not true - Posted by seldon

Posted by seldon on June 02, 2007 at 19:01:02:

section 8 has guidelines of maximum rent allowable for a particular size unit in a certain geographical area,also taken into account are the number of eligible occupants and monthly household income.this means that if the housing authority determines that Jane Doe and her two kids can lease your 2 bdrm house and total payments per month are to be $425 with hud paying 400 and tenant paying 25 you are NOT allowed by federal law to collect more than 25 dollars from that tenant.serious penalties can result if you make side deals with tenants not to mention that now THEY have the lever on you because you have broken the law.better to accept what the gov is offering or not do section8 at all. S