Rhett Wiseman is a seasoned real estate investor who excels in Section 8 real estate investing and offers valuable coaching based on personal experience. In the following article, “the Section 8 Guy” explains how Section 8 is alleviating the housing crisis.
In a time where the cost of necessities is ever-accumulating, housing costs are certainly not exempt. The availability of Section 8 housing creates both the opportunities for tenants to thrive as well as for landlords to create new streams of income and pave the way to their goals of financial freedom.
How does it work, though?
Rhett Wiseman delves into the benefits of being a Section 8 tenant or landlord. But first, a discussion on the current problems in finding and providing housing.
The Current Economy: Its Impact on the Real Estate Industry
CNBC’s article states that rent has increased by 5.5% in the past year – and COVID-19 and its effect on the economy are the primary culprits.
Rhett explains that, to renters slowly recuperating from the pandemic, high rental prices can dissuade an interest party from renting. Instead, many people have transitioned to living with family and friends while they recoup.
Rhett notes, however, that not everyone has this option. According to 2023 data by the National Alliance to End Homelessness, nearly 600,000 Americans are currently homeless.
So, how can Section 8 be the solution?
Shelters for the Unsheltered
The Housing Choice Voucher (HCV) program, also known as Section 8, provides housing assistance for low-income households. To be eligible for the program, one must be of the following:
| Income Bracket | Qualifications |
|---|---|
| Low-income | Earning 80% of the AMI. |
| Very low-income | Earning 50% of the AMI. |
| Extremely low-income | Earning 30% of the AMI. |
To find out the AMI (Area Median Income) limits in each state, check out the Department of Housing and Urban Development (HUD).
Consistent Income and Contribution to the Community
Section 8 vouchers may be primarily issued to low-income households, but landlords can also take advantage of this program.
The PHA Issues Scheduled Rent Payments
Regardless of the Public Housing Agency (PHA) that issues the Section 8 voucher to tenants, all PHAs send a monthly rental payment to landlords.
Rhett notes that, typically, the rental payment depends on the PHA and the FMA (Fair Market Rent). Once they determine the house or apartment unit’s value, they’ll cover at least 70% of the rent.
Rhett explains how Section 8 not only secures landlords’ income from the properties they’re renting out, but it also benefits them through the program’s free-of-charge inspections.
Free Inspections
Part of owning or renting a Housing Choice Voucher Program rental is having the PHA annually inspect the property. While inspections are inherently quite dreadful, in this case, picture them as a cost-effective benefit.
- Worried about carbon monoxide?
- Does the foundation of the building seem unstable?
Usually, tenants and landlords hire rental property inspectors to answer these questions – and these professionals get paid to do that. However, with Housing Choice Voucher Programs, the PHA covers the cost of property inspections.
And the Section 8 program provides more than just free property inspections.
Added Exposure
Local PHAs typically keep – and publish – lists of Section 8 rental properties. Because of this, landlords need not worry about when or how long the next renters will arrive. There is no need to worry about posting advertisements, because the local PHA will do it.
Even if there won’t instantaneously be tenants lined up, there’s still a better chance of getting one quickly since the PHA posts these properties on their platforms.
Apart from the financial benefits, Section 8 can also inspire feelings of altruism in landlords.
A Sense of Fulfillment
Few professions receive such an opportunity to help others directly – and providing housing for the less fortunate is one of those. Imagine being the person to provide a single parent with a home, the only one to open the door for a patient in recovery, or perhaps the only landlord around to not discriminate against a disabled veteran.
Rhett says that nobody will know exactly why every low-income renter is in their current situation, but Section 8 housing availability creates stable and safe housing opportunities for many people who would not have access otherwise.
Conclusion
Don’t ignore the significance of Section 8. For landlords, a tenant with a Section 8 voucher means that PHA secures property rental. To tenants, the HCV makes it easier to find and secure a place to call home.
Don’t be afraid to utilize Housing Choice Voucher Programs – it can help tenants secure a stable income and give hope to renters that deserve shelter.
