Top Benefits of Investing in Section 8 Rentals

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Section 8 is a federal program managed by local public housing agencies (PHAs). It was institutionalized in 1974 and is officially the HUD’s “housing choice voucher” program. Those eligible under the program (e.g. disabled, elderly, low-income families) can choose a rental unit that their voucher can pay for up to 70% of the rent including the bills. The tenant pays the rest.

Getting Section 8 rental investments can be very beneficial. There are many advantages to the program that other non-Section 8 rental properties don’t have.

Regular Payments

A clear benefit of Section 8 is the timely and regular payments from the government. Through the program, monthly payments are received from the HUD. The government pays out at least 50% of the tenant’s rent depending on their income and expected utility costs.

Protection from Non-Payment

Under typical tenancy settings, non-payment of rent is a common issue that could end up to eviction at the most. In Section 8 rentals, since the HUD will pay the rent, any non-payment from the tenant due to personal hardships or unemployment are secured.

Competitive Rental Rates

The rent you may get from your Section 8 tenant is better than a comparable rental property. Monthly rents under the program are charged competitively, normally at the higher end of the current market price range. This is due to the difficulty of Section 8 voucher holders to find a potential unit.

Wide Tenant Pool

Section 8 offers a great supply of potential tenants easing the search efforts of property owners. There are some websites that keep a waiting list of verified tenants under the program. They also keep a listing for owners to advertise their properties.

Shorter Vacancy

The average rental unit encounters typical dry spells or when the property is left vacant for a long time. Under Section 8, units are often rented out for long periods as tenants get an obvious incentive to stay longer.

Section 8 rentals are very beneficial, as they’re federally guaranteed. Common rental issues that hound non-Section 8 rental properties are avoided, hence, ensuring the investor or property owner sustained profitability.

About Eleanor Sharp
Eleanor Sharp is the author of AGSE Law. As a paralegal, she has worked with attorneys in many fields to ensure their clients get the best advice and representation. She is passionate about helping people understand the complexities of the legal system so they can make better decisions for themselves. Eleanor loves reading, travel, and spending time with her family. She hopes her articles will help others navigate life’s legal intricacies with confidence.