It's estimated that nearly one-third of individuals can't afford to pay their rent. This affordable housing crisis not only affects tenants but also landlords. The good news is that government programs might represent a solution for both parties.
The Section 8 housing programs allow landlords to easily fill their rentals with tenants who can afford to live there.
So what exactly is Section 8? And how does Section 8 decide if your rent is reasonable for your Henderson property? In this guide, we'll answer these questions so you can decide if this federal program is right for your rental properties.
What Is Section 8?
Section 8 refers to the housing choice voucher program that's offered by the federal government. Here's how it works: landlords can sign up to be part of the program if they agree to offer their rent at a fair market price.
In exchange, the government will subsidize the cost of cheap homes for people enrolled in the program. That means that the person only has to pay for a percentage of their rent - the rest is covered by the HUD.
Why Is Section 8 Ideal for Landlords?
Why go through the effort of becoming a Section 8 landlord? Any landlord knows that attracting tenants can sometimes be a challenge. This is especially true if your property is located in a neighborhood without a lot of demand.
Section 8 ensures that you constantly have access to a supply of tenants who are enrolled in the program. What's more, you also get guaranteed rental income from the federal government.
For anyone who's recently been through an eviction or wants to invest in real estate, this can certainly be enticing.
How Does Section 8 Decide If Rent Is Reasonable?
When you apply to Section 8, you'll need to provide HUD with a proposed rent. They'll then decide if this rent amount is reasonable by doing a market analysis.
This is done to establish a fair market rent. This analysis will look at four main areas. This includes your property location, size, condition, and any amenities in the area.
If the HUD disagrees with your proposal on your properties in Hendersonville, you can always negotiate with them.
How a Property Management Company Can Help You
There are multiple reasons why you should consider hiring a full-service property management company to help you. First, here at PMI Blue Ridge, we can provide you with a rental analysis.
This will give you a better, more accurate proposed rent figure that you can give your local HUD. Second, they can handle all the forms and paperwork that come with applying for Section 8.
What's more, they can deal with every aspect of managing the tenant once they're in place, from maintenance to rent collection.
Interested in Section 8? Contact PMI Blue Ridge
We hope this guide helped you answer the question, How does Section 8 decide if your rent is reasonable? It's important to remember that like anything some pros and cons come with being a Section 8 landlord.
Here at PMI Blue Ridge, we're passionate about using our expertise to help landlords decide if Section 8 is right for them.
So if you have any questions or need help calculating your proposed rent, get in touch with us today.
