Pc, no, you don’t take a lower rate. In fact, you justify your rate based on identifying three comparable homes in the area that renting. The HUD representative validates the rentals and comparable-ness. And authorizes the rate.
So basically, you get fair market rent and the Government guarentees it. The people in the program don’t want to lose it, so they are going to pay their part. Which is limited to 30% of their income. The Section 8 program makes up the different between their 30% of income payment and whatever your FMR is up to 120% of the HUD determine FMR for bedroom count in area.
For example, Say the family renting the OP’s house makes $18,000 a year. Their income is $1500/month. The max contribution from them is $500/month.
The landlord will get a $500 check from the family and a $1300 check from the government.
do you think the family is going to find a way to get the $500 and not bother you too much? I think so.
