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The U.S. Federal Government is committed to helping as many people as possible enjoy access to safe, affordable housing. The Section 8 Housing Voucher Program is one of the initiatives designed to assist these endeavors.
While many state-owned buildings are involved in this scheme, private landlords can apply to house recipients of these vouchers, provided their rent is reasonable.
Read our landlord guide to Section 8 to find out how this program determines whether your rental unit is eligible.
How Section 8 Works
The Section 8 program provides qualifying individuals with vouchers that they can use to pay a portion of their rent. The vouchers are managed by local public housing agencies across the nation.
Families must meet certain criteria to qualify for the Section 8 program. In most cases, they must earn an amount that's less than 50% of the average income for their area.
Family size can impact the lower earnings limits, and factors like disabilities may also help their cause. Seniors also get priority when it comes to housing voucher allocation.
People who qualify for the HCV program can choose any housing that suits their needs, e.g., single-family homes, apartments, or townhouses. The public housing authority pays rent directly to the landlord according to the voucher allocation for that family.
The tenant must pay the rest.
Why Become a Section 8 Landlord?
The obvious benefit of housing Section 8 tenants is having a guaranteed rental income. These tenants are also highly likely to take good care of your property and renew their lease agreements.
That's because Section 8 housing is hard to come by, and they could lose access to Housing Choice Vouchers if they don't pay their rent on time or damage the landlord's property.
It's still important to screen these tenants, as the local housing authority only does a few initial background checks.
What Is Reasonable Rent Under Section 8?
Like tenants, landlords can apply to benefit from the Section 8 initiative via their local housing authority. One of the main Section 8 rental criteria for landlords is rent reasonability.
The Section 8 program is based on fair market rent calculations for non-metropolitan counties and major metropolitan areas. A fair rent calculation equals the 40th percentile of gross rents, i.e., an amount common to 40% of standard-quality homes in the area.
The housing authority publishes a list of fair market rents by zip code and will pay vouchers valued at 90% to 110% of the FMR for that location. Every area has a predetermined percentage, called the payment standard.
Landlords receive rent equal to 30% of the tenant's income plus the payment standard.
Make the Most of Your Rental Property in Saratoga Springs
Now that you know the drill when it comes to Section 8 rent determination, it's easier to decide whether applying to be a Section 8 landlord is worth it for you.
Veno Properties can help you calculate fair rent prices for your properties, regardless of the tenants you want to attract. We offer a full range of property management services, including tenant screening, maintenance coordination, and property inspections, to preserve the value of your property.
We stand out for our professional, reliable service and state-of-the-art property management technology. Discover the ultimate solutions for your Saratoga Springs investment property today.
