For low-income families who are potentially unable to fully pay for their housing needs, Section 8 rental properties can be a great outlet. This program, a financial housing assistance program backed by the US Department of Housing and Urban Development, offers numerous financial benefits to tenants.
Section 8 investing also offers several benefits to the investor as well, however, both financially and otherwise. Here are some of the reasons it can pay to become a Section 8 landlord.
Because rent and other financial elements receive assistance from HUD, payments are very rarely an issue for landlords. HUD uses direct deposits into business accounts, and these payments are made on time and with no hassles. You don’t have to deal with excuses about why money is late, or deal with income-related problems.
HUD offers protection against potential hardships for tenants financially. Say a tenant has to take a three-month leave of absence from work due to health issues – HUD will cover 100 percent of payments until the tenant is able to return to work. Instead of an eviction and a short term vacancy, you can continue with a positive rental situation.
Especially in larger cities, filling vacancies is a very quick process once a property has been inspected and approved for the Section 8 program. There are long lists of tenants looking for these kinds of homes, and filling vacancies tends to be simple.
Not only are rent payments guaranteed and stable, HUD can mean great rental rates as well, especially in lower-income areas. This works as a two-way incentive, and benefits both families and landlords.
Down similar lines to vacancies discussed above, access to a large pool of potential tenants – and low-cost marketing – is a major benefit of Section 8 investment. For a small fee, you can get premium listings for more attention on a property while tenants are searching.
Want to learn more about any part of Section 8 investing? Speak to the experts at Americas Housing Alliance today.