What is Section 8 Housing?
This is a question that I have been asked by a lot of young, up & coming real estate investors lately. Almost like a HUD home, the term itself seems to have a negative connotation in people’s minds. I would disagree on both.
Section 8 housing is housing that’s provided by the government for very low income families. The qualification income requirements differ by county in Texas. Tenants would need to contact their county and go through their qualifying process. Once they’re approved, they find housing in the area that they want or need to live in within the price that the government is offering to help them with.
Once they find a place to live, the home has do be deemed acceptable by the agency. The local authority for HUD will sign the lease along with the tenant as there are three parties bound by the agreement: landlord, tenant and Section 8 authority.
The benefit as a landlord is that the rent is typically covered 100% by the Section 8 voucher which is automatically paid each month. You don’t have the same risk with other tenants as the rent is almost guaranteed so long as the tenants remain at the property. Landlords can attend local meetings on marketing their properties for free through the local Section 8 housing authority so long as their properties are deemed qualified for the program through the authority.
If you’re thinking about purchasing investment properties, give me a call or email. I would be happy to help you weigh the different options of leasing them out, flipping or building. (817) 771-0998 AngelaSellsDFW@gmail.com
Here are some informational links & additional information for the Dallas/ Fort Worth area:
What is Section 8 housing?
On how tenants qualify for a Section 8 voucher:
How to get all units Section 8 approved:
Important Things to Know:
Roles – the tenant, the landlord, the housing agency and HUD
Once a PHA approves an eligible family’s housing unit, the family and the landlord sign a lease and, at the same time, the landlord and the PHA sign a housing assistance payments contract that runs for the same term as the lease. This means that everyone — tenant, landlord and PHA — has obligations and responsibilities under the voucher program.
Landlord’s Obligations: The role of the landlord in the voucher program is to provide decent, safe, and sanitary housing to a tenant at a reasonable rent. The dwelling unit must pass the program’s housing quality standards and be maintained up to those standards as long as the owner receives housing assistance payments. In addition, the landlord is expected to provide the services agreed to as part of the lease signed with the tenant and the contract signed with the PHA.
Housing Authority’s Obligations: The PHA administers the voucher program locally. The PHA provides a family with the housing assistance that enables the family to seek out suitable housing and the PHA enters into a contract with the landlord to provide housing assistance payments on behalf of the family. If the landlord fails to meet the owner’s obligations under the lease, the PHA has the right to terminate assistance payments. The PHA must reexamine the family’s income and composition at least annually and must inspect each unit at least annually to ensure that it meets minimum housing quality standards.
HUD’s Role: To cover the cost of the program, HUD provides funds to allow PHAs to make housing assistance payments on behalf of the families. HUD also pays the PHA a fee for the costs of administering the program. When additional funds become available to assist new families, HUD invites PHAs to submit applications for funds for additional housing vouchers. Applications are then reviewed and funds awarded to the selected PHAs on a competitive basis. HUD monitors PHA administration of the program to ensure program rules are properly followed.