Section 8 housing

User Forum Topic
Submitted by sd_matt on September 28, 2008 - 3:14pm

Is there anyone here with experience in Section 8? I realize there are probably articles floating around but I cant find where to keyword search on this site.

I have yet to buy a house but am waiting like you guys. Each house I buy after the first will be for investment...rentals.

What do you folks think about being a Section 8 landlord, the good and the bad?

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it's like running a traler
Submitted by patb on September 30, 2008 - 3:06pm.

it's like running a traler park

with the government paying th ebills.

Be careful. I looked into it
Submitted by peterb on September 30, 2008 - 3:19pm.

Be careful. I looked into it and decided against it after talking to some veterans of this type of rental. Lot's of the people are addicts of one kind or another. At least they were when I looked into this 5 years ago. Made for some real "hands on" property management issues.

If your units are mediocre,
Submitted by EconProf on September 30, 2008 - 6:12pm.

If your units are mediocre, hard to fill, and you are not expecting their values to appreciate, the Section 8 program is OK. You can get a range of tenant types, from the hard-working-but-low-income family, to the real losers. The regularity of the monthly gov't check and the long-term, uncomplaining nature of the good tenants can be great. Problem is, if you get a loser, the gov't makes it hard to get rid of them. The bureaucracy you have to work with is frustrating, and the annual inspections nit-picking little items is insulting.
You can pick and chose your Section 8 tenants carefully and do OK. Also, the S. 8 rents can often be above market rents, esp. because the gov foolishly puts units into a category based on #of bedrooms and (I think), # bathrooms. So if you have unusually small BRs or are in a rough neighborhood, you can game the system and extract higher than market rents.
Some landlords swear by Section 8. But it is not a plus when trying to sell, as it may put a damper on your value.

How much freedom do I have to
Submitted by sd_matt on October 5, 2008 - 3:39pm.

How much freedom do I have to choose my tenants? Lets say I had a friend who was not first on the list but I knew would be a good tenant? Can I choose that individual?

I think you can freely chose,
Submitted by EconProf on October 5, 2008 - 4:01pm.

I think you can freely chose, so it is something to check out (outside of the fact that I would in general not rent to a friend or relative--it has never worked out for me).
Once you pick a Section 8 tenant you are married to them, so it is the one time you really can and should be picky. The usual rules about discrimination of course apply.

I can't think of anything
Submitted by meadandale on October 5, 2008 - 5:14pm.

I can't think of anything positive about being a section 8 landlord. Maybe I should give you the phone number of a realtor buddy of mine who does PM for section 8 rentals...LOL

Thanks all for your concern,
Submitted by sd_matt on October 5, 2008 - 8:18pm.

Thanks all for your concern, but I would trust this individual with my life.

Who would be the best people to talk to about whether or not I can choose a particular tenant? I want to talk to the government last since they only seem to volunteer the least amount of information possible. Plus I would like to hear what you all say from experience and compare it to what the people in government say. Its my way of weeding out those who dont know their job.

BTW...PM for section 8...?