Why Should You Rent to a Section 8 (HCVP) Tenant?

Why Not?... Yes, I'm sure plenty of landlords have horrible stories about Sect 8 tenants. BUT according to Fair Housing laws everyone has the legal right to live anywhere they want (and can afford) to live. This applies to both families w/ Sect 8 or regular families paying market rates.

Fair Housing doesn't mean that owners are required to rent to anyone who comes through the door. Property owners have the RIGHT to screen applicants...YOU SHOULD BE SCREENING EVERY APPLICANT.

The key to the screening is that you must treat everyone the SAME! If you require credit and background checks from one tenant, that rule must apply to each tenant that comes to apply for the apartment.

If the landlord's screening uncovers information that indicates that the tenant will not pay their rent on time, or that they will damage the property, then the owner does not have to rent to the tenant. This is why it is for important to screen your tenants. Set a criteria for screening and it must apply to each applicant, equally and fairly.

Back to why you should rent to a Section 8 Tenant? The obvious reason...Section 8 portions are guaranteed. For those landlords that don't know what Section 8 is...it is a federal rental assistance program that is monitored by HUD, that services low income families. Their rental portions will be based on a percentage of their income and Sect 8 will pay the difference of the rental amount. So for example: You charge $1300 for rent; based on the tenants income (calculated by Sect 8) the tenant will be responsible for $300 and Sect 8 pays the difference of $1000. Another benefit is that Sect 8 will give you the opportunity to raise the rents 5% each year.

Let's talk payment standards. The payment standard is the max that can be paid on any particular unit. Section 8 will order a "Rent Reasonable" for the unit. It is an analysis of the rent for unassisted in the area. Even if the max payment standard is $1334 for a 2 bedroom if the rent reasonable comes back at $1300 that is the most Sect 8 will be able to negotiate for your unit.

Here are the Payment Standards for Newark's Housing Choice Voucher Program (Section 8).

0 Bedroom: $955

1 Bedroom: $1,167

2 Bedrooms: $1,334

3 Bedrooms: $1,597

4 Bedrooms: $1,766

5 Bedrooms: $2,090

6 Bedrooms: $2,295

At those guarantee rent prices, why shouldn't you rent to Section 8? You could find a great Sect 8 tenant that will occupy your property for a few years, with a great screening process.

Section 8 has policies in place to protect the landlords against trouble tenants. If you feel like the tenant is destroying your property, you can file a complaint with their caseworker and get the tenant out of there.

I have great knowledge on the Section 8 program. If you need help finding a tenant or any questions call or email me. Good Luck!