Section 8 housing is a worthwhile investment from a real estate perspective. You get a steady flow of income, and gain protection from the financial hardships of your tenants.
Those who are new to the concept should know that Section 8 is the U.S Department of Housing and Urban Development’s (HUD) Housing Choice Voucher Program. Basically, it gives low-income families the option to apply for housing vouchers, which gives them financial assistance to rent an apartment.
The U.S. government introduced Section 8 of the Housing Act in 1937, during the height of the Great Depression. It helped people with low-income live in relatively decent buildings that meet the minimum housing standards.
Under Section 8, the U.S. government shoulders up to 70% of the rent, which means that even if your tenant pays late, you will still have a steady flow of income. Naturally, not everyone qualifies for Housing Vouchers, and those who do end up on a very long waitlist.
In fact, only 20% of the families who qualify for housing assistance are currently receiving housing vouchers. Generally, only families who exhibit all of these requirements receive assistance:
Though the HUD and the PHA already pre-screens tenants, you will still need to screen your applicants yourself to make sure they are a good fit. Many investors complain about loud or rude tenants, and in the worst case scenarios, have occupants who downright trash the place.
Screening your renters will ensure that your building remains pristine and that you can minimize disturbance in the community.
At Americas Housing Alliance, we pre-screen your qualified tenants and maintain your property investments for you. For more information, contact us today.