How can I rent my property to a Section 8 tennant and accept Section 8 payments?
The Section 8 and Subsidized Housing Online Packet can instruct one on how to become a section 8 landlord as well as helping them to find tenants for a section 8 dwelling. HUD allocates funds to a Housing Authority to administer the program locally and then that PHA pays the landlord the remainder of the rent over the tenant's portion, subject to a cap referred to as "Fair Market Rent" (FMR) which is determined by HUD. Each year, the federal government looks at the rents being charged for privately owned apartments in different communities, as well as the costs of utilities (heat, electricity, etc.) in those communities. The "Fair Market Rents" are an estimate of the average gross rents (rents plus utilities) for medium-quality apartments of different sizes in a particular community. As an example, 2012 FMR for 1 bedroom housing in San Francisco is $1522 and in New York is $1280 while in many other places it is less than $500. The landlord cannot charge a Section 8 tenant more than a reasonable rent and cannot accept payments outside the contract. In addition, a Section 8 landlord application will allow a landlord to complete the Housing Assistance Payment Contract, sometimes referred to as a Section 8 landlord application although required to meet fair housing laws, are not required to participate in the Section 8 program. Tenants in this program have unfortunately gained the reputation of being unruly, because of this, some landlords will not accept a Section 8 tenant. This can be attributed to such factors as: not wanting the government involved in their business, such as having a full inspection of their premises by government workers for HUD's Housing Quality Standards (HQS) and the possible remediations required fear that a Section 8 tenant or their children will not properly maintain the premises a desire to charge a rent for the unit above FMR unwillingness to initiate judicial action for eviction of a tenant (HUD requires that Section 8 tenants can only be evicted by judicial action, even where state law allows other procedures) Depending on state laws, refusing to rent to a tenant solely for the reason that they have Section 8 may be illegal.
With the Section 8 and Subsidized Housing Online Packet, one can also learn how to apply for Section 8 online. A Section 8 landlord can use only general means of disqualifying a tenant (credit, criminal history, past evictions, etc.). However, other landlords willingly accept Section 8 tenants, due to: a large available pool of potential renters (the waiting list for new Section 8 tenants is usually very long, see below) generally prompt regular payments from the PHA for its share of the rent tenants incentive to take good care of the property (PHA's require that tenants not damage rental properties. In many instances a tenant may be removed from the program if they owe a previous landlord monies). Whether voucher or project-based, all subsidized units must meet the HQS, thus ensuring that the family has a healthy and safe place to live. This improvement in the landlord's private property is an important byproduct of this program, both for the individual families and for the larger goal of community development.
Section 8 Landlord ApplicationThe Housing Assistance Payment contract is really what could be considered a Section 8 landlord application. Applicants that want to fill out a Section 8 application form. Potential tenants that receive Section 8 vouchers find their own rental housing and use the vouchers they receive from their housing agency to help pay the rent. Basically, the voucher means that the Federal Government will pay a specific amount of the rent. If you wish to rent to Section 8 Voucher holders, you should inform the local Housing Authority of the availability of your property and also indicate in your advertising that you welcome Section 8 Voucher holders. Ultimately, it is the voucher holder's decision whether or not to rent your property. Of course, as the Section 8 landlord, you would screen the Section 8 voucher holder just as you would any other prospective tenant.