How Is Rent Determined With Sec 8 Housing?
I live in Houston Texas and am considering renting a property out to someone that qualifies for Sec 8. Someone told me that rent is determined by the number of bedrooms the home has i.e. 3 bedrooms = $800 a month. This sounded a little strange to me so I wanted to check with you guys. I would appreciate it if anyone could tell me what the guidelines are for determing monthly rent for Sec 8 properties.
Thanks in advance
Michelle
If you do a search on the internet there are set guidelines available from the Section 8 authorities in your area. Here in Florida it is at every county's website. Unfortunately I dont know where the texas one is. You may want to go straight to the horses mouth by going to the federal sites that set the standards though.
Good Luck,
Kyle
Here in Atlanta, it's each county that sets the guidelines, loosely based on the Fed guidelines. Two side-by-side counties, and they both pay different amounts based on different criteria.
Check with your local Sec 8 authority. They'll give you the lowdown. Basically there is a Sec 8 inspection making sure everything is up to code in the unit and to make sure it's legit - so you're not asking $2000 for a unit that should rent out at $1000. From my understanding Sec 8 will cover up to a certain rent amount depending on the size of the unit. If there is anything left over, then it falls on the tenant to pay that amount. They'll give you the breakdown on the numbers if you call, and then you tell them you've got housing available for sec 8. They put your name on the list and then tell everyone who qualifies for sec 8 that you've got a whatever bed / whatever bath available. They tenants check the place out and if they like it they give you a stack of papers to fill out. That's my understanding of it.
Ryan J. Schnabel
I have several section 8 properties the rents are as follows:
4 bedroms= $883.00 per moth
3 bedrooms= $775.00 per month
They are the only houses I buy so I don't have any other figures.
Lori
[addsig]
The amount paid for a certain size property is determined by the local/county housing department. I have several in the program which rent as follows 6 BR-$1,200.00,5 BR-$1,075,4 BR-$975.00,3 BR-$800.00,2 BR-$600.00,1 BR-$350.00-$450.00.
In addition to the comments above, the quality of the property will also determine how much Section 8 (gov't) will provide the landlord. I personally know of two landlords who got a significant increase in their Sec 8 funding because they cared enough to keep the buildings in good shape.
The original concept behind Section 8 is the government's way to decentralize low income housing; decreasing the number of inner city ghettos and moving Sec 8 tenants out to other areas. Maintaining good properties pays off - especially if the Sec. 8 office comes to know your property management skills and quality of housing.
Don't just look at Sec. 8 ownership as short-term cash cow because not all 2/1 or 3/1 get the same amount.
Quote:
On 2004-04-02 06:21, KyleGatton wrote:
If you do a search on the internet there are set guidelines available from the Section 8 authorities in your area. Here in Florida it is at every county's website. Unfortunately I dont know where the texas one is. You may want to go straight to the horses mouth by going to the federal sites that set the standards though.
Good Luck,
Kyle
Interesting...I'll have to check this out.
JB
[addsig]
What has been your experience w/sec 8 tenants? I've seen some real pig stys (NY), while others really take care of the prop (NC, GA).
I have props I'm considering renting to sec 8 that are in mint condition. Do you visit their current residence (w/adequate notice, but not too much lead time) as part of the screening process?
Do a search in the forums theres tons of info about section 8.
Its also true from 1 county or town to the next it will vary.
HUD will pay fair market rents for the area and I've found thats about right.
Ed
Sorry didn't answer your question completely.
Can't tell you exactly how but they (HUD)
take renters income into consideration as well as a property checklist wich includes amenitys into such as amount of bedrooms room size cieling fans storage area porch size and the list goes on and www.on.Then and only then they compute some kind of program to arive at what they will pay for rent.
Ed
Dealing with this right now as we are inheriting sec 8 tenants....a few variables go into the mix....(speaking form CA perspective) My tenant will only be able to stay for another year because her children are getting older and after next year she will only qualify for a 2 bedroom. Thats important thing to know as i dont want short termers....She works so, here section 8 has a chart for what her max utilities can be and then adds that to adjusted income # and when it all comes out in the wash it means that her share of the rent can only be 30-40% max of her income. In our case the 3 bed sect 8 amount is $876....but I was told we could charge up to $957 max with that amount being calculated at 40% of her income. And it will actually climb a bit because the utility allowance amount are going up soon. Call the office and ask lots of questions. One lady tried to tell me $876 was the max period. She's wrong if the section 8 client is a person who actually works (as mine is) and is not just on a fixed income (welfare or social sec) you can actually charge more than the sec 8 limit for rent. Market rent for this unit is somewhere in the neighborhood of $950......her rent is way below market at $700 her portion being around $457 and sec 8 is $243 under current rent......if raised , her portion will prob go up $100mo and the sec 8 portion will cover the difference. I spoke with an inspector for the office....she advised me to never take the word of a previous landlord cuz they will do anything to get some bad sec 8 out and to really do my due diligence in screening, even inspect current living arrangements.....she knew personal knowledge of my tenant and confirmed i should have no probs as we also came to the same conclusion with the condition she kept her unit in. For notice to vacate Sec 8 requires 90 day notices instead of 30/60. And the lease is a year contract.