According to PBS News, it's estimated that half of all renters pay more than 30% of their income on rent and utilities. As rental prices continue to increase, while wages stay down, we can only expect the housing crisis in this country to get worse.
That's why federal programs that provide low-income renters with affordable housing are more vital than ever. Perhaps the most popular housing program out there is Section 8, or the Housing Choice Voucher.
But what exactly is Section 8? And how does the Section 8 program determine if the rent you offer as a landlord is reasonable? In this guide, we'll answer these questions so you can decide if you want to try to register your property with the program.
What Is Section 8?
Section 8 is another name for the housing choice voucher program that's offered by the Housing and Urban Development Department (HUD). Here's how it works: low-income families sign up to be on the program.
When they move into a Section 8-approved rental a large percentage of the rent is covered by the government. The rest they pay for. Landlords must sign up to be on the Section 8 housing list.
And, to that, you must submit a rental amount request which the HUD will determine if it's reasonable through HUD regulations.
How Can Section 8 Be Beneficial to Landlords?
Signing up to be a part of Section 8 can be a big hassle, so is it worth it to landlords? One of the biggest benefits of Section 8 for landlords is that it significantly decreases rental vacancies.
There's a long waiting list for Section 8, so you'll have no shortage of tenants. What's more, a portion of the rent is guaranteed which can be hard to find in this day and age.
Tenants in the program are eager to stay on it, so there's a better chance they'll take good care of your property.
How Does Section 8 Determine Rent Reasonableness?
The rent that you charge must be approved by the HUD as reasonable. To do this, they look at a variety of factors in the Section 8 guidelines including:
- Location
- Property quality
- Age
- Any amenities
- Unit type
- Size of the rental
- Any housing services or maintenance included in the rent
We recommend performing a rental analysis on your property as a jumping-off point. Just make sure you factor in all of the rent reasonableness criteria.
How a Property Management Company Can Help
Signing up for Section 8 is a lot of work. When you hire a property management company, they can take care of the entire application process, from the paperwork to the rental analysis for the tenant rent determination.
And once you have tenants they'll be their point of contact so you can sit back and enjoy some passive income.
Need Section 8 Rental Help? Contact PMI Wichita
We hope this guide helped you learn more about the Section 8 program here in Wichita. Here at PMI Wichita, we know all the work that goes into becoming a Section 8 landlord.
Luckily, regardless of whether or not Section 8 is right for you, we can help. We use our twenty years of experience in the area to ensure that regardless of the circumstances your rental property is successful. So if you're ready for the help you need, get in touch with us today.
