How to Become a Section 8 Landlord

There are many benefits for landlords who rent to Section 8 Housing Choice Voucher tenants. If you are a landlord interested in leasing to tenants with rental assistance, this guide will help you navigate the process step-by-step.

Before diving into everything, if you want to know more about how the Section 8 HCV program works, we recommend starting with our What is the Section 8 Housing Choice Voucher Program? Guide.

While this program is aimed to help renters, it was also designed to benefit landlords as well. Most importantly for landlords, rent payments are split between tenants and the housing agency that manages the voucher. So, you can expect to receive timely payments from the local housing department every month for their share of rent.

Other key benefits include:

• The ability to request reasonable annual rent increases from the local housing agency.
• Free inspections that can identify maintenance needs before they become too severe.
• Gratification from providing affordable housing to renters with low incomes, who are in great need of this assistance.

Many landlords are aware of these benefits, but are still hesitant to rent to Section 8 tenants because of widespread myths about the program. Let’s spend some time addressing the facts:

• Section 8 tenants are no more likely to damage units or fail to pay rent than tenants without rental assistance. In fact, Section 8 tenants are typically steady, long-term residents who often live in their unit for several years.
• Your Section 8 tenants can be evicted for lease violations just the same as tenants without vouchers. Section 8 tenants are bound by the terms of their lease, just like any other tenant.
• Landlords are not required to rent to someone just because they have a Section 8 voucher. You may screen all tenants with your own background check, and deny them if they fail to meet your requirements. (Just be aware that in many areas of the country, you cannot deny a Section 8 tenant only because they have a voucher.)

If you are looking for an opportunity to rent to Section 8 tenants, start by reaching out to your local housing authority.

1. Contact the local housing authority.

   First, contact the local HUD Public Housing Agency (commonly called a housing authority), and let them know of your interest in renting to Section 8 tenants. The housing authority can provide details about the local process and what Housing Quality Standards (HQS) need to be met.

   Housing authorities are not allowed to recommend a particular landlord or property to voucher holders. However, many housing authorities maintain a list of landlords who accept vouchers, and share this with their voucher households. The housing authority may also share access to websites or platforms used to advertise available units.

   Many housing authorities have an office in the local area, but there are also many communities that are not served by a locally-based agency. This is often the case in rural areas. Depending on your area, you may have to reach out to a regional or state housing authority that serves your community.

   You can use the Housing Authority Directory on Affordable Housing Online to find the agency that serves your area.

2. Set rent that falls within area Fair Market Rents.

   Now, it is up to you to set the monthly rent amount.

   The Section 8 program does not dictate what rents landlords must charge. However, rents must fall at or below local Fair Market Rents (FMRs). This is the cost to rent a moderately priced dwelling in each housing market.

   HUD updates FMRs for each state and metropolitan area annually. FMRs are set for different apartment sizes, ranging from efficiencies to four-bedroom units.

   The local housing authority will have the FMRs for its service area. You can also look up the current FMRs for your housing market using HUD’s FMR Documentation System.

3. Make sure the unit meets Housing Quality Standards.

   Housing authorities need to make sure that HCV tenants will be living in homes that are safe, sanitary, and in good condition. HUD has Housing Quality Standards (HQS) that must be met before an HCV tenant can rent an apartment.

   You can get details about meeting HQS from the local housing authority. HQS inspections will assess the following items:

   • Sanitary facilities
   • Food preparation and refuse disposal
   • Space and security
   • Thermal environment
   • Illumination and electricity
   • Structure and materials
   • Interior air quality
   • Water supply
   • Lead-based paint
   • Access
   • Site and neighborhood
   • Sanitary conditions
   • Smoke detectors

   The housing authority will inspect the unit before completing a rental assistance agreement with the landlord. Once the Section 8 tenant moves in, HQS inspections will be done annually.

4. Review applications from Section 8 tenants.

   You would screen Section 8 tenants the same as you would an applicant without a voucher. This includes common things like checking rental or criminal histories. You should use the same criteria for all applicants to avoid renting to problem tenants.

   Once a Section 8 tenant’s rental application is approved, you will need to fill out their Request for Tenancy Approval form.

   The housing authority will confirm the rent falls within area FMRs. The housing authority will also make sure the rent charged is not higher than rent for any comparable unassisted units at the property.

5. Sign the HAP contract and start receiving rent payments!

   Once a lease is signed with the Section 8 tenant and is submitted to the housing authority, you will receive a Housing Assistance Payments (HAP) contract to sign.

   When the HAP contract with the housing authority is executed, you will start receiving housing assistance payments from the housing authority. Section 8 tenants will separately pay you their own portion of the rent.

PAGE LINK:  https://affordablehousingonline.com/what-is-section-8/become-a-landlord

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03-06-24 –

Low-Income Housing Without A Waiting List

Due to the high demand and low supply of affordable housing, it’s extremely rare to find affordable housing with no waiting list. But it’s possible to find housing assistance quickly if you know what to look for.

Section 8 Housing Choice Vouchers (HCV)

Waiting lists to apply for this program open infrequently, and usually for a short time. If a household is able to get their application placed on the waiting list, the time it takes to get to the top of the waiting list could be months or years. The HCV program is in extremely high demand, and Affordable Housing Online has never discovered an area with a HCV program that has no waiting list.

Consider applying to HCV programs operated by Public Housing Agencies (PHAs, or housing authorities) in rural or small towns. Many of those areas will have shorter waiting lists, if it is open for applicants.

Be aware: You must be willing to move into their rural or small town jurisdictions for the first year of using your Housing Choice Voucher, and be in good standing at the end of the first year in order to move somewhere else with the voucher.

Note: Some PHAs set aside a small number of special Housing Choice Vouchers that are given to certain populations (like victims of domestic violence and homeless persons) without entering a waiting list.

And in other instances, a housing authority give some vouchers to persons living in toxic units (which contain lead paint, asbestos, radon, etc…); or in unhealthy units.

These special vouchers are not available to the general public, and may require a referral from a participating organization.

Section 8 Project-Based Vouchers (PBV)

A Section 8 Project-Based Voucher (PBV) is different from the HCV program, in that the voucher is tied to a specific apartment complex. A Project-Based Voucher cannot be transferred to a different property.

Waiting lists for Project-Based Vouchers are usually administered by the local HUD housing authority. Some PBV waiting lists might be administered by a property management company working with the housing authority.

Almost all Project-Based Voucher properties have a waiting list. Some properties in low-populated areas may have immediate availability, but that is rare.

Public Housing

Public Housing properties also offer rental assistance that’s tied to a specific apartment complex. Like Project-Based Vouchers, Public Housing assistance cannot be transferred to another property.

Waiting lists are either administered by a HUD housing authority, or a partnering property management company. As with PBVs, almost all Public Housing properties have a waiting list. On rare occasions, some properties in some rural areas may have no waiting list.

Rental Assistance Demonstration (RAD)

RAD properties are Public Housing developments that were renovated with Section 8 program funding. Anyone on the property’s original Public Housing waiting list stays on the list, and current residents get first dibs for a RAD unit.

HUD housing authorities are actively converting our Public Housing stock to RAD housing nationwide. To find RAD housing without a waiting list right now might be difficult and not worth the time and effort.

Project Based Rental Assistance (PBRA)

The PBRA program is directly administered by HUD’s Office of Multifamily Housing. The PBRA program is tied to specific units in a property, usually owned and managed by private owners. Some PBRA properties are operated by the local housing authority.

On rare occasions, you may find a PBRA property with no waiting list, but generally only in rural areas.

Low-Income Housing Tax Credit (LIHTC)

The LIHTC program is currently financing 90% of all new low-income housing developments. Private management companies and individual owners usually manage these communities; and some are managed by a housing authority.

There may be some LIHTC properties in areas with low populations that have no waiting list.

Rural Development (RD) Housing

Unlike most HUD programs, many apartments funded through Rural Development rental assistance programs may have a very short waiting list; or none at all.

These communities usually have a private owner or management company; but some are associated with housing authorities.

Households with the lowest incomes are given priority, so that means if you have very low or no income, you will get a chance to move into an apartment before other applicants.

Senior Housing and Housing for Persons with Disabilities

Many affordable housing developments are built for senior and/or disabled residents. In most cases, the head of household (or spouse) must be 62 and over, or have a certifiable disability. There are also “Near-Elderly” properties, which are usually for tenants at least 55 years old.

You may find Senior/Disabled properties with no waiting list in some low populated areas. And even if there is a wait, it may be shorter than other low-income rental assistance waiting lists.

PAGE LINK:  https://affordablehousingonline.com/low-income-housing-without-a-waiting-list

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03-04-24

New Guide: What is Public Housing?