Who cares about who is paying the rent, why did he buy a place for 400k and go section 8? Section 8 has eligibility rules, tenants must make half the median income and the rent has to be between 30% and 40% of their income. At best he is getting 2k a month, likely it is less. 300k is the most anyone should pay for a 2k rental using the 150x multiplier as the utmost ceiling. In a year it wont be section 8, it will be a re-repo. Curently the maximum income for a family of 8 is 52k.
40% of that is 20k a year, 1800 a month being the ceiling for a family of 8 and that is pushing the envelope. Section 8 is not designed for nice houses or high rent most section 8 rentals are at the bottom tier of the housing stock. Now group homes is an entirely different scenario, that is a legitimate worry but there is a finite amount, so it’s not like 10k group homes will come in. It is possible that someone has decent income but has a disabled family member and thus receives some form of benefit but that is not the norm for section 8 and nothing you need to worry about. If he isn’t getting upwards of 3k in rent, he’s an idiot.
Don’t worry about trends like this, only a few fools are left to be separated from their money, there isn’t going to be line forming behind this guy, the line is very short to be 50% cash negative on a rental.
