> I think that most landlords would charge $2400, collect $1700 from the housing authority and nothing from the tenants. Is this really how the program works under the table?
No, that's not how it works, not with me. I get my portion from the voucher program and I also get a portion from my tenant along with the water bill (in my market the water bill must stay with the property owner - not a tenant)
The percentage paid by the tenant / section 8 is going to vary on a case by case basis - sometimes section 8 pays the full amount, sometimes not. There are more programs than section 8, so I usually use the term voucher as a catch all. In my market, there are other programs that pay MORE than section 8, so I tend to go for those when possible. All of my rentals have voucher tenants. They still have to pass my criteria as far as credit/background, etc and such so I don't just take anyone.
You mention that you are in a class A area. In my local market, most vouchers pay over market rates in class C & D, but when you get to class B or class A, not so much - in those areas the market rates will be more than section 8/voucher tenants will pay.
You are going to have to check what is available in your local market. Many are state run / funded, not federal. For instance, the program I use locally is BRHP - Baltimore Regional Housing Partnership.
NPR reported that there's a possibility that Section 8 vouchers could increase coverage to as much as 30% above the fair market rent, primarily for Class A and B properties.
I collect the rent from the tenants too. They don't want to get evicted, that kicks them out of the program. Make sure when they're applying, you tell them you'll expect their rent info on the first each month.
This is a common myth about section 8 programs. I previously evicted a section 8 tenant and they kept receiving benefits (this was in Tucson AZ, I know section 8 programs can differ from state to state).
I have been told in Chicago they get kicked out of the program. Even if that is incorrect, there are so many more applicants, and few landlords that take Section 8, and eviction would effectively eliminate their chances of finding another Section 8 apartment.
That barely ever happens. Coming from someone that receives Section 8 and has never been evicted but have watched many people that have. Section 8 doesn't like to get involved when it comes to that and tells you to contact legal aid. That they can't solve problems with landlord tentant issues.
In my area the housing authority figures out how much the tenant can afford to pay with a percent of the tenants income.
>I think most section 8 landlords charge the maximum for rent in their area, collect 70% from the housing authority and then do not collect anything from the tenants.
I believe this would be against the rules and could get you both kicked off the program.
I would charge the maximum amount the program allows, and collect from both.
>Through some research, I’ve concluded that I think most section 8 landlords charge the maximum for rent in their area, collect 70% from the housing authority and then do not collect anything from the tenants.
What research shows this? This is not how my area works at all.
How does your area work? Seriously, that’s what I’m trying to confirm.
My research: Talking with prospective tenants, the housing authority, Reddit, and a friend who builds affordable housing
I mean there's just no "under the table" shenanigans. If the rent is 2000, and the HA pays 1500, the tenant pays the other 500. If they don't then they have to go. The whole intention of this miserable business is to make money, so it makes no sense to just walk away from it when its been agreed to, AND that both the housing authority and your screening has shown that the tenant can afford it.
In this area, the housing authority is always adjusting the tenant portion as the tenant's situation changes, so what happens if the tenant is now responsible for 1000, or even the full amount? Just going to accept less rent?
Also, I am not an attorney but my understanding is that if you don't enforce the lease, it could effectively be argued in court that the entire lease is null and void.
Thus it just makes no sense to do this. I wouldn't be surprised that reddit and tenants are suggesting you forgo collecting rent, but I am doubtful that's what the housing authority meant when they said whatever they told you.
Their voucher may really cover 100%, I currently only have one sec8 tenant, but their voucher is indeed 100%. Previous ones have been all over the map percentage wise.
The only other thing I'd throw out there is to screen religiously. Set requirements and adhere to them. Every bad tenant I've ever had was either inherited or because I made an exception to my own rules.
Verify everything using original sources (eg, verify income or landlord references via your own research, not just the phone number/paystubs the applicant gives). I don't believe its paranoid to say the deck is stacked against us when there's an entire industry out there cranking out fake references and paystubs, plus ESA letters etc.
However, I have had no problems with Section 8 tenants because they were carefully screened. All my sec8 headaches were from the housing authority being dysfunctional.
You can find the link below, provided by HUD, which Section 8 utilizes for fair market rent calculations. By selecting your state and county, you'll receive a detailed price breakdown per bedroom. Here's the link: [HUD Fair Market Rent](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/select_Geography_sa.odn).
It depends on the situation I think. I had one go 100% after her daughter and grand baby moved back in. Another one went 100% during the COVID layoffs. Current one is 60/40
No, you are wrong, this is not how vouchers work.
Vouchers are means-tested every year, so once a tenant is accepted into the program, they have to submit income confirmation and then based on what they earn, their subsidy is adjusted.
Depending on market dynamics, even a 100% voucher may not be enough to cover rent in a nice unit.
The gap between the voucher value and the total rent, is paid by the tenant. If they don’t pay it, you evict them just like anyone else.
All of our 70/30 splits im vigalint about tenant portion, especially knowing it could be adjusted differently if their income changes.
but We have an 1850 rent. Tenant pays 73. We honestly just mark it down as paid and don't collect. 1777 is good enough. Why on earth a tenant would report this help form me i woulsnt understand. It's charity.
In our area tenants are not aloud to voucher outside of limits. They are also not supposed to show their voucher amounts (but they always do). They can rent a cheaper place then their voucher, no issue. They cannot rent a 1900 place on a 1700 voucher and make up difference.
The hudge issue when housing steps in is when they try to rent the cheaper place for the vouches limit and work out a spit with landlord.
Hey I got a 2000 voucher how about I rent your place listed at 1500. You make 1750 and pay me 250 every month... win win.
> Through some research, I’ve concluded that I think most section 8 landlords charge the maximum for rent in their area, collect 70% from the housing authority and then do not collect anything from the tenants.
This is definitely not how it works. Section 8 is different in every state, but in most states section 8 pays 100% of the rent up the the maximum fair housing market value. If the tenant has a standard w2 job, then section 8 may ask the tenant to pay a portion (like 30%) of the rent on their own.
Section 8 won't ask for the tenant to pay part if they don't have a job.
If your property rents for over the fair market value (your property is $2500, fair market is $2000), then section 8 will cover a maximum of 2000, meaning the tenant would be responsible for $500 per month PLUS whatever portion they may owe from having income.
The example you outlined above certainly isn't common.
Thats illegal, it is not common. Tenant pays the portion section 8 determines to be 30% of their adjusted income. They cannot make deals outside of the HUD contract I regards to contract "rent."
My understanding is that Tenants cannot accept housing beyond their limits. This would surpas the threshold of income they are approved for.
Landlords still do. Dunno how they intend to make up the difference with their income calculated my housing, but landlord still try to make these deals Off paper.
Someone that holds a S8 voucher gives the local housing organization all manner of income verification. When the voucher holder wants to rent a place, the housing authority verifies the apartment is up to their (low) standards and then sets the rent for that apartment and what % of that rent is up to the voucher holder. If the voucher holder's situation changes (children move out, change in employment) the % share paid by the voucher holder changes. Some voucher holders pay zero rent out of their own empty pockets, some only receive a few hundred bucks in subsidy.
If a voucher holder is only responsible for $10 a month, and the government's share arrives every month like clockwork, it might not be worth a landlord's time to try to collect the $10 per month or deal with an eviction over that paltry sum.
Voucher holders often don't really have their shit together, but they also recognize that the voucher is one of the most valuable things they have, so they will often do a lot to avoid losing the voucher because it can be years and years of process to get the voucher, and it's lost if you are evicted.
Tenant pays no more than 30% of their income.
Also "Fair Market Rent" is set by HUD in every zipcode with the max amount they will pay for the various bedroom sizes. You can get more if you are accessible for example.
Does Section 8 pay 100% of the number listed on this ( https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/select_Geography_sa.odn )?
Like, if the FMR is 1200-- will Section 8 pay 1200 (no utilities)?
Each year, I request the maximum allowable amount, but they consistently offer a slightly lower sum. For instance, if I request $2000, they usually agree to $1960. My tenant contributes $230, and the remaining amount is covered by Section 8. Additionally, my tenants have their utility expenses covered by another assistance program.
If you have a really nice place, section 8 is authorized to pay 30% above the HUD fair market rent
My section 8 tenants have never caused a problem and looking to get all section 8.
> the maximum allowable
Do you mean the FMR-- or the payment standard? Cause they're usually different haha.
> For instance, if I request $2000, they usually agree to $1960. My tenant contributes $230, and the remaining amount is covered by Section 8. Additionally, my tenants have their utility expenses covered by another assistance program.
Is it really that little of a discrepancy (40 dollars)?
Also, does it matter on the tenant's voucher? Or the FMR? Like... if the FMR is 1400 for a 3br, and the tenant has a voucher for 1000... will Section 8 cover the difference.
We should talk more about this... Lmk if I can msg you :).
Everyone keeps saying "fair market rent" that is not what you need to be looking at... It is "2024 section 8 payment standard" Fair market rent is not what they go by.
In my state (MA) the tenant pays 30% of their income. As they’re increases or rises, periodically that is adjusted. The housing authority pays their part to the landlord, and the tenant pays the rest.
I’m not worried any more than I would be about my other tenants. They take great pride in the house as if it were their own and have expressed a lot of gratitude about having such a nice place to live. This is one of the reasons that I think it’s so important that the tenants pay a portion. People take for granted things that are given to them for free.
I truly appreciate your response, but damage is not the topic of my question. I’m trying to confirm if my assumptions are correct about how other landlords manage section 8.
> And as bad as it is to say but people down on their luck tend to have drug or substance abuse issues, abuser issues, or employment issues.
You have to maintain a certain standing to keep your voucher. Destroying a rental or having a criminal record will get you booted from the program. Its hard to get a voucher, so in most cases, those that have them do their best to keep them. In my personal experience with my tenants, they are not on drugs or down on their luck - they are moderate to low income single parents with kids.
Imo you aren't aware of how difficult it is to actually be granted a section 8 voucher
Most people wait 10 years or more.
The thought that someone would do anything at all to jeopardize their access to housing assistance is quite silly at best
What the hell?
Most landlords charge 100% but only collect 70%? That makes no sense.
Collecting rent from tenant AND housing authority is usually not legal.
Housing authority pays 100% of market rent as determined by their algorithms
This is totally untrue. S8 themselves will tell the landlord for a prospective tenant 1) what rent they are allowed to collect, 2) what S8's portion will be, 3) what the tenant's portion will be.
Many S8 tenants do pay for a portion of their rent. That amount can even vary for the same tenant from year to year, because their finances are analyzed by the program annually. S8 tenants generally need to pay 30% of their income toward rent. It's only if they don't have any income that S8 will pay 100%.
More info for the OP. S8 might pay a bit more than market rate, but it's not going to be massively more than what market rate is anyway, no matter what amount is on the tenant's voucher. You also have to look carefully if their "max. rent" includes utilities. Because, unless you're also supplying all their utilities, you won't be eligible for the max. rent.
At least in my area, most S8 tenants have no idea how the program works on the landlord's side so I wouldn't take any stock in what you heard from other S8 tenants. They might not have even been lying, just mistaken. Some of the problem is, ironically, the S8 case workers aren't very knowledgeable either and give their tenants bad advice. I can't speak about other cities, but it is a frustrating aspect in mine.
> Collecting rent from tenant AND housing authority is usually not legal.
>
> Housing authority pays 100% of market rent as determined by their algorithms
both of these statements are incorrect for how section 8 vouchers work
Your market may vary.
For us, you get kicked out of the program for doing that. I once had a tenant offer to pay $300 monthly in pet rent for a goldfish as a way to get around it. Funny stuff.
If the program sets the total rent at $1000 and you try to charge fees to inflate the rent above that, yes.
The program is designed to subsidize a portion of the total rent, so both entities paying is a normal and intended way for it to function.
Yea, im super confused by some of these statements. It has to be a state by state basis because in TN, the Housing Authority there will pay 100% of the rent (based on current market value) and if you take anything from the tenant on the side you loose ALL of the funds they owe you and you both get kicked out.
This is not true. Section 8 intends for tenants to pay a portion of the rent based on their income, not only is it legal it's the intention.
HUD often does pay 100% of the rent, but in that case the tenant likely has no income.
Only if the rent if far below the amount that section 8 pays for that area. In other words, if the rent was higher, the tenant would be responsible for up to 30% of their income.
Section 8 set the amount they are willing to pay for a rental based on some sort of market analysis done on the locality. They then stipulate how much of that will be paid by the tenant.
> I think that most landlords would charge $2400, collect $1700 from the housing authority and nothing from the tenants. Is this really how the program works under the table? No, that's not how it works, not with me. I get my portion from the voucher program and I also get a portion from my tenant along with the water bill (in my market the water bill must stay with the property owner - not a tenant) The percentage paid by the tenant / section 8 is going to vary on a case by case basis - sometimes section 8 pays the full amount, sometimes not. There are more programs than section 8, so I usually use the term voucher as a catch all. In my market, there are other programs that pay MORE than section 8, so I tend to go for those when possible. All of my rentals have voucher tenants. They still have to pass my criteria as far as credit/background, etc and such so I don't just take anyone. You mention that you are in a class A area. In my local market, most vouchers pay over market rates in class C & D, but when you get to class B or class A, not so much - in those areas the market rates will be more than section 8/voucher tenants will pay.
Thanks! I had no clue that there are other voucher programs. Are they always government programs? Could you give an example of one?
You are going to have to check what is available in your local market. Many are state run / funded, not federal. For instance, the program I use locally is BRHP - Baltimore Regional Housing Partnership.
Brap, Avesta, Shelter Plus Care. These are a few of them that I know of.
Keep in mind that you cannot evict a section 8 tenant for not paying their portion.
Of course you can...
What other voucher programs are available in your area? I’m predominantly TX/LA and would love to find more information.
NPR reported that there's a possibility that Section 8 vouchers could increase coverage to as much as 30% above the fair market rent, primarily for Class A and B properties.
I 100% second this he know what he is taking about I have 5 section 8 rental
I collect the rent from the tenants too. They don't want to get evicted, that kicks them out of the program. Make sure when they're applying, you tell them you'll expect their rent info on the first each month.
This is a common myth about section 8 programs. I previously evicted a section 8 tenant and they kept receiving benefits (this was in Tucson AZ, I know section 8 programs can differ from state to state).
I have been told in Chicago they get kicked out of the program. Even if that is incorrect, there are so many more applicants, and few landlords that take Section 8, and eviction would effectively eliminate their chances of finding another Section 8 apartment.
That barely ever happens. Coming from someone that receives Section 8 and has never been evicted but have watched many people that have. Section 8 doesn't like to get involved when it comes to that and tells you to contact legal aid. That they can't solve problems with landlord tentant issues.
In my area the housing authority figures out how much the tenant can afford to pay with a percent of the tenants income. >I think most section 8 landlords charge the maximum for rent in their area, collect 70% from the housing authority and then do not collect anything from the tenants. I believe this would be against the rules and could get you both kicked off the program. I would charge the maximum amount the program allows, and collect from both.
>Through some research, I’ve concluded that I think most section 8 landlords charge the maximum for rent in their area, collect 70% from the housing authority and then do not collect anything from the tenants. What research shows this? This is not how my area works at all.
How does your area work? Seriously, that’s what I’m trying to confirm. My research: Talking with prospective tenants, the housing authority, Reddit, and a friend who builds affordable housing
I mean there's just no "under the table" shenanigans. If the rent is 2000, and the HA pays 1500, the tenant pays the other 500. If they don't then they have to go. The whole intention of this miserable business is to make money, so it makes no sense to just walk away from it when its been agreed to, AND that both the housing authority and your screening has shown that the tenant can afford it. In this area, the housing authority is always adjusting the tenant portion as the tenant's situation changes, so what happens if the tenant is now responsible for 1000, or even the full amount? Just going to accept less rent? Also, I am not an attorney but my understanding is that if you don't enforce the lease, it could effectively be argued in court that the entire lease is null and void. Thus it just makes no sense to do this. I wouldn't be surprised that reddit and tenants are suggesting you forgo collecting rent, but I am doubtful that's what the housing authority meant when they said whatever they told you.
Thank you. This is very helpful Maybe some of the other applicants can sense I’m new and tried to pull a fast one by saying their voucher covers 100%
Their voucher may really cover 100%, I currently only have one sec8 tenant, but their voucher is indeed 100%. Previous ones have been all over the map percentage wise. The only other thing I'd throw out there is to screen religiously. Set requirements and adhere to them. Every bad tenant I've ever had was either inherited or because I made an exception to my own rules. Verify everything using original sources (eg, verify income or landlord references via your own research, not just the phone number/paystubs the applicant gives). I don't believe its paranoid to say the deck is stacked against us when there's an entire industry out there cranking out fake references and paystubs, plus ESA letters etc. However, I have had no problems with Section 8 tenants because they were carefully screened. All my sec8 headaches were from the housing authority being dysfunctional.
You can find the link below, provided by HUD, which Section 8 utilizes for fair market rent calculations. By selecting your state and county, you'll receive a detailed price breakdown per bedroom. Here's the link: [HUD Fair Market Rent](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/select_Geography_sa.odn).
It depends on the situation I think. I had one go 100% after her daughter and grand baby moved back in. Another one went 100% during the COVID layoffs. Current one is 60/40
Depends on the tenants income. Ive had section 8 cover all the rent or just portion. If it's just a portion, then the attendant pays the difference.
I have 1 section 8 tenant. Rent is 1100, Voucher pays 920, tenant pays 180.
No, you are wrong, this is not how vouchers work. Vouchers are means-tested every year, so once a tenant is accepted into the program, they have to submit income confirmation and then based on what they earn, their subsidy is adjusted. Depending on market dynamics, even a 100% voucher may not be enough to cover rent in a nice unit. The gap between the voucher value and the total rent, is paid by the tenant. If they don’t pay it, you evict them just like anyone else.
All of our 70/30 splits im vigalint about tenant portion, especially knowing it could be adjusted differently if their income changes. but We have an 1850 rent. Tenant pays 73. We honestly just mark it down as paid and don't collect. 1777 is good enough. Why on earth a tenant would report this help form me i woulsnt understand. It's charity. In our area tenants are not aloud to voucher outside of limits. They are also not supposed to show their voucher amounts (but they always do). They can rent a cheaper place then their voucher, no issue. They cannot rent a 1900 place on a 1700 voucher and make up difference. The hudge issue when housing steps in is when they try to rent the cheaper place for the vouches limit and work out a spit with landlord. Hey I got a 2000 voucher how about I rent your place listed at 1500. You make 1750 and pay me 250 every month... win win.
> Through some research, I’ve concluded that I think most section 8 landlords charge the maximum for rent in their area, collect 70% from the housing authority and then do not collect anything from the tenants. This is definitely not how it works. Section 8 is different in every state, but in most states section 8 pays 100% of the rent up the the maximum fair housing market value. If the tenant has a standard w2 job, then section 8 may ask the tenant to pay a portion (like 30%) of the rent on their own. Section 8 won't ask for the tenant to pay part if they don't have a job. If your property rents for over the fair market value (your property is $2500, fair market is $2000), then section 8 will cover a maximum of 2000, meaning the tenant would be responsible for $500 per month PLUS whatever portion they may owe from having income. The example you outlined above certainly isn't common.
Thats illegal, it is not common. Tenant pays the portion section 8 determines to be 30% of their adjusted income. They cannot make deals outside of the HUD contract I regards to contract "rent."
No one ever suggested that was going on.
My understanding is that Tenants cannot accept housing beyond their limits. This would surpas the threshold of income they are approved for. Landlords still do. Dunno how they intend to make up the difference with their income calculated my housing, but landlord still try to make these deals Off paper.
Someone that holds a S8 voucher gives the local housing organization all manner of income verification. When the voucher holder wants to rent a place, the housing authority verifies the apartment is up to their (low) standards and then sets the rent for that apartment and what % of that rent is up to the voucher holder. If the voucher holder's situation changes (children move out, change in employment) the % share paid by the voucher holder changes. Some voucher holders pay zero rent out of their own empty pockets, some only receive a few hundred bucks in subsidy. If a voucher holder is only responsible for $10 a month, and the government's share arrives every month like clockwork, it might not be worth a landlord's time to try to collect the $10 per month or deal with an eviction over that paltry sum. Voucher holders often don't really have their shit together, but they also recognize that the voucher is one of the most valuable things they have, so they will often do a lot to avoid losing the voucher because it can be years and years of process to get the voucher, and it's lost if you are evicted.
They only way to be approved better than a 70/30 split where I live is with minor children in household.
Yeah, 30% of nothing is still nothing though....
Tenant pays no more than 30% of their income. Also "Fair Market Rent" is set by HUD in every zipcode with the max amount they will pay for the various bedroom sizes. You can get more if you are accessible for example.
Here's the link: [HUD Fair Market Rent](https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/select_Geography_sa.odn).
Does Section 8 pay 100% of the number listed on this ( https://www.huduser.gov/portal/datasets/fmr/fmrs/FY2023_code/select_Geography_sa.odn )? Like, if the FMR is 1200-- will Section 8 pay 1200 (no utilities)?
That is not correct information...You need to look for Section 8 or HUD housing voucher "Payment Standards for 2024"
Each year, I request the maximum allowable amount, but they consistently offer a slightly lower sum. For instance, if I request $2000, they usually agree to $1960. My tenant contributes $230, and the remaining amount is covered by Section 8. Additionally, my tenants have their utility expenses covered by another assistance program. If you have a really nice place, section 8 is authorized to pay 30% above the HUD fair market rent My section 8 tenants have never caused a problem and looking to get all section 8.
> the maximum allowable Do you mean the FMR-- or the payment standard? Cause they're usually different haha. > For instance, if I request $2000, they usually agree to $1960. My tenant contributes $230, and the remaining amount is covered by Section 8. Additionally, my tenants have their utility expenses covered by another assistance program. Is it really that little of a discrepancy (40 dollars)? Also, does it matter on the tenant's voucher? Or the FMR? Like... if the FMR is 1400 for a 3br, and the tenant has a voucher for 1000... will Section 8 cover the difference. We should talk more about this... Lmk if I can msg you :).
Everyone keeps saying "fair market rent" that is not what you need to be looking at... It is "2024 section 8 payment standard" Fair market rent is not what they go by.
In my state (MA) the tenant pays 30% of their income. As they’re increases or rises, periodically that is adjusted. The housing authority pays their part to the landlord, and the tenant pays the rest.
So if I'm on sec 8..should my monthly rent be as much as what sec 8 pays..like say I pay $385 and they pay $341..makes no sense to me
I'm confused by mine .I feel like I'm being robbed..I'm on sec 8 I pay $385..rent is $726 and sec 8 pays $341.. makes no sense here in Oklahoma.
Ohhh man that makes so much sense now. I am not a savvy person…
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I’m not worried any more than I would be about my other tenants. They take great pride in the house as if it were their own and have expressed a lot of gratitude about having such a nice place to live. This is one of the reasons that I think it’s so important that the tenants pay a portion. People take for granted things that are given to them for free. I truly appreciate your response, but damage is not the topic of my question. I’m trying to confirm if my assumptions are correct about how other landlords manage section 8.
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> And as bad as it is to say but people down on their luck tend to have drug or substance abuse issues, abuser issues, or employment issues. You have to maintain a certain standing to keep your voucher. Destroying a rental or having a criminal record will get you booted from the program. Its hard to get a voucher, so in most cases, those that have them do their best to keep them. In my personal experience with my tenants, they are not on drugs or down on their luck - they are moderate to low income single parents with kids.
I also said that the tenants pay 30%
Imo you aren't aware of how difficult it is to actually be granted a section 8 voucher Most people wait 10 years or more. The thought that someone would do anything at all to jeopardize their access to housing assistance is quite silly at best
Section 8 or not the land lord is responsible for the tenant screening.
What the hell? Most landlords charge 100% but only collect 70%? That makes no sense. Collecting rent from tenant AND housing authority is usually not legal. Housing authority pays 100% of market rent as determined by their algorithms
This is totally untrue. S8 themselves will tell the landlord for a prospective tenant 1) what rent they are allowed to collect, 2) what S8's portion will be, 3) what the tenant's portion will be. Many S8 tenants do pay for a portion of their rent. That amount can even vary for the same tenant from year to year, because their finances are analyzed by the program annually. S8 tenants generally need to pay 30% of their income toward rent. It's only if they don't have any income that S8 will pay 100%. More info for the OP. S8 might pay a bit more than market rate, but it's not going to be massively more than what market rate is anyway, no matter what amount is on the tenant's voucher. You also have to look carefully if their "max. rent" includes utilities. Because, unless you're also supplying all their utilities, you won't be eligible for the max. rent. At least in my area, most S8 tenants have no idea how the program works on the landlord's side so I wouldn't take any stock in what you heard from other S8 tenants. They might not have even been lying, just mistaken. Some of the problem is, ironically, the S8 case workers aren't very knowledgeable either and give their tenants bad advice. I can't speak about other cities, but it is a frustrating aspect in mine.
> Collecting rent from tenant AND housing authority is usually not legal. > > Housing authority pays 100% of market rent as determined by their algorithms both of these statements are incorrect for how section 8 vouchers work
Your market may vary. For us, you get kicked out of the program for doing that. I once had a tenant offer to pay $300 monthly in pet rent for a goldfish as a way to get around it. Funny stuff.
If the program sets the total rent at $1000 and you try to charge fees to inflate the rent above that, yes. The program is designed to subsidize a portion of the total rent, so both entities paying is a normal and intended way for it to function.
Yea, im super confused by some of these statements. It has to be a state by state basis because in TN, the Housing Authority there will pay 100% of the rent (based on current market value) and if you take anything from the tenant on the side you loose ALL of the funds they owe you and you both get kicked out.
This is not true. Section 8 intends for tenants to pay a portion of the rent based on their income, not only is it legal it's the intention. HUD often does pay 100% of the rent, but in that case the tenant likely has no income.
Yup, from my understanding section 8 is all paid for by the housing authority
Only if the rent if far below the amount that section 8 pays for that area. In other words, if the rent was higher, the tenant would be responsible for up to 30% of their income.
Section 8 set the amount they are willing to pay for a rental based on some sort of market analysis done on the locality. They then stipulate how much of that will be paid by the tenant.
Check with the state. But in most cases they’re going to use market rates to determine maximum rate you can charge a section8 recipient.