Being a section 8 landlord in 2023 can be a stress-free way to manage tenant relationship and a great source of rental income. Many Americans are looking for houses for rent by owner accepting section 8 applicants. There are numerous benefits to landlords for enrolling in the Section 8 program, including:
Guaranteed payments from
Annual rent increases
Lower tenant vacancy rates
Rental income profit margins
What is the Section 8 Program?
The main purpose of the Section 8 program (also known as the Housing Choice Voucher) is to help low-income tenants find affordable housing in the private market.
In order to get Section 8 approved, landlords must ensure that their property meets certain standards. In addition to basic amenities such as heat, hot water and electricity, properties should also have smoke detectors and fire extinguishers installed. It is also advisable to have landlord insurance in place.
The criteria for income limits vary across the country. Section 8 official eligibility requirements are set by HUD, and may be adjusted depending on what each individual state decides. Generally speaking, in order to qualify for Section 8 assistance, you must be a US citizen or permanent resident. The property owner will also need to verify that the applicant has no criminal record.
Properties can be found through a wide variety of sources, from classified advertisements in local publications to websites. If you want to rent your property especially to tenants with Section 8 housing vouchers, you could do a few things to speed up the process.
You can either go directly to the local PHA in your area and follow all the steps recommended by them before any tenant will reach you, or list your properties on www.Gosection8.com.
How to Register a House For Rent By Owner Accepting Section 8 Applicants
Public Housing Agency
To register your properties in the Section 8 housing program with the help of a local Public Housing Agency you should:
Contact your local PHA.
See all their requirements and check if your property fits. If there are any aspects that your unit does not tick from the 'must-have' list, you should change this before moving on to the next step.
Complete an inspection for your rental unit (this should take place a few days after the tenancy approval). During the visit of a Public Housing Authority staff member, your property must pass certain points to complete the rental process successfully. Usually, they will check the sanitary facilities, illumination, electricity, water supply and a few other things.
After your rental unit passes the inspection, you will have to go through a series of signings and exchanging of documents to make the monthly payment by voucher possible.
Now you're all set up to start finding your tenants. The PHA office will be with you at this stage, helping to promote your property and making sure that potential tenants meet all the necessary criteria for renting your unit.
Section 8 Website
The ‘Go Section 8’ website provides property rental listings directly to Public Housing Authorities and will make your properties visible to many tenants daily looking for Section 8 rental housing in their area. Here's what to do if you choose this option instead:
Post your property on their website provide information about your unit exactly as you would do on any other rental website — upload pictures and give all the details about your address, unit capacity, utilities, parking lot, monthly rent and deposit amount required, and anything else related to your property characteristics.
Wait to receive a message from a tenant interested in your property and contact the Department of Housing and Urban Development to review their application in order to see if they can afford your rent out your unit.
Schedule the inspection and wait for your property to be checked by an authorized inspector.
Sign a rental agreement with your tenants and the final Section 8 contract received from the Housing Authority.
The Section 8 program can bring advantages for both landlords and tenants. With a Housing Choice Voucher, tenants can rent houses and apartments in safe areas that they could not have afforded without help and use their remaining income for other necessities.
Landlords have more tenants to choose from and the guarantee of monthly payments, making it easier for them to rent out their properties. Although this may be true, accepting Section 8 vouchers are not beneficial to all landlords.
Some of them prefer to stay away from the program because they do not want to limit the rent of their property, be surprised by unpleasant tenants, or are simply afraid that the Housing Authorities could interfere too much in their business.
Nonetheless, circumstances may vary from one landlord to another and the nature of their properties. That being said, if you are in a position to decide whether to become a Section 8 Landlord, you should first do a deep analysis of how this change could affect your rental real estate business in the long run.