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Should You Rent to Section 8 Tenants? (Benefits and Challenges)


Whether you have one or more rental properties, surely, you'll be asking the question: Should I accept section 8 tenants?

Section 8 tenants are tenants who have qualified for the Housing Choice Voucher Program. This is a government program that provides housing to very low-income families. In this case, the program helps them afford housing by paying 70% of their rent each month.

Some landlords like the idea of renting to section 8 tenants, while others find it a difficult decision to make. To help you, we've listed advantages and disadvantages of going section 8. At the end of the day, you decide. 

Pros and Cons of the Section 8 Program

Advantages

1. Consistent rent payment  

Who doesn't like guaranteed rent? It's no secret that landlords worry about rent being paid on time each month. By renting to section 8 tenants, you will receive consistent monthly payment. A check will be mailed to you or the money gets deposited into your account. If you have struggled with late paying tenants for so long, you will appreciate this benefit of being a section 8 housing landlord.

2. No shortage of tenants 

Filling vacancies as quickly as possible is no longer a problem you worry about. Section 8 opens your rental business to many potential tenants who cannot afford rent. Contrary to popular belief, you can and definitely should screen section 8 tenants as you would anyone else.

3. Low-cost marketing 

Another benefit of renting to section 8 tenants is that you can list your rental property for a very small fee and still get a ton of attention. Check out GoSection8. This website allows you to list your rental property and access prospects that match your listing.

Disadvantages

1. More inspections 

Prior to opening your doors to renters, your property will have to undergo a separate inspection specific to section 8. That's on top of the inspections conducted by your city or county. If your unit does not comply with HUD’s Housing Quality Standards, you will be provided a list of items that need to be fixed or remedied. You have about a month to make the corrections.

2. Concerns regarding property damage 

There are horror stories surrounding section 8 tenants. You may have heard about destroyed floors, cracked toilets, and possible illegal use of the property. While these issues are possible, still, keep in mind that it can happen to any tenant you rent to - section 8 or not. 

Final Thoughts

If you are a new landlord, make sure that you do proper research about being a section 8 landlord. Consider the good and bad of it. 

And be sure to double-check your state laws, because some states prohibit discriminating against a tenant due to their source of income, which can include income sourced from the Section 8 program. Some states, Like California, prohibit any blanket statement sin advertising such as "No Section 8". So be sure your advertising does not create a blanket ban on Section 8 tenants; consider each applicant individually.


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