3 Key Things to Know About Section 8 Housing

3 Key Things to Know About Section 8 Housing

If you're a property owner in the Bay Area, chances are you've heard that rents have been dropping. The San Francisco Bay Area may be one of the expensive places to live. 

Despite price drops, the Bay Area is a property owner's market. Nonetheless, you'll want a strategy to ensure a stable, steady source of rental income. It may surprise you but Section 8 housing is an underutilized option for property owners.

As a property owner, Section 8 offers you consistent, reliable renters. But there are also things to be aware of. Read on to learn three key Section 8 Housing facts you need to know. 

What Is Section 8 Housing?

Section 8 is a Federal program. Section 8 enables low-income renters to afford private market housing.

Elderly, low-income families and disabled people often have a harder time. The rental market is competitive.

In 1974, the Housing and Community Development act passed. This act enables housing authorities to run Section 8 programs.

Landlords can apply to participate, just like potential tenants. If you're wondering how to rent in Section 8 housing in the Bay Area, you may find this simple guide a good start. 

First Key Insight: Section 8 Tenants Offer Steady Income

Low-income tenants can apply for a Section 8 voucher. With this voucher, they can rent from a participating landlord. They pay a portion of the rent and the federal government subsidizes the remainder.

When you apply to be a Section 8 landlord, you'll have consistent income. That's because the federal government pays rent to you on behalf of the tenant each month. They will never default or be late with their monthly payments.

Section 8 tenants are more likely to stay for a long time when they move in. Additionally, Section 8 housing is in high demand. No matter what, you'll always have tenants to fill your vacancies. 

Scond Key Insight: Your Tenants Will Be Pre-Screened

When you are a Section 8 landlord, your tenants will be pre-screened by the authorities. You should always do your own background checks. If you don't, you may end up regretting it later.

But you can rest assured that your tenants will have filled out extensive paperwork. Their immigration status, income, and criminal background will be pre-screened by the authorities. 

Third Key Insight: Be Aware of Your Responsibilities

When you are renting in Section 8, you'll be subject to a yearly inspection. You will need to pass the requirements and standards set out by the housing authorities.

You are also responsible for alerting your tenants of rental increases. You can only increase the rent within the rates set out by your local authorities. They do so to ensure the rent prices are fair. 

Managing Your Section 8 Property

Now you know three key facts about renting Section 8 property. Keep this in mind when you decide whether to participate in the Section 8 program.

It can be a wise business move for you, ensuring consistent rent payments. But you are also subject to more regulation and rules than operating alone. 

We know managing property is vital as a property owner. We have experience managing 800+ units on the Peninsula, including Section 8 units.

Interested in discussing your options and strategies? We're here to provide you hassle-free support. Get in contact with us to discuss your property needs.  

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