Lynn B. Friedman - Atlanta Homes ODAT Realty: Atlanta Investment Property - Section 8 - Let's Take A Look At Rules 1

Atlanta Investment Property - Section 8 - Let's Take A Look At Rules 1

Atlanta Investment Property - Section 8 -
Let's Take A Look At Rules

 

 

Atlanta Investment Property - HUD Section 8 is an option.


How does it work?
Public HUD housing buildings are owned by the federal government. Most HUD housing consists of apartments, although there are some duplexes, townhouses and single-family houses. People apply there for living spaces.

For Privately Owned housing:
Section 8 Certificates, issued by Public Housing Authorities (PHA) across the US, allow participants to rent a wide variety of private residence types. These include single-family houses, duplexes, condominiums, townhouses, apartments and even trailers.

Who may use Section 8 benefits?
Those in very low-income households may apply for the Section 8 Rental Certificate program. It offers additional housing choices by allowing families to choose privately-owned rental housing. Families apply to a local PHA or administering governmental agency for a Section 8 certificate. (Infographic above from Glendale, CA Housing Authority.) 

While the Section 8 program requires that Tenants to be responsible about caring for the place where they live, the program also requires that the Property Owner be responsible and provide respectful living conditions for the Tenants.

How are rental amounts determined?
The local housing authority does not set the rental amounts in the Section 8 program. Instead, Section 8 beneficiaries agree to monthly rent payments with private Landlords. However, the PHA places limits on the monthly rent amount. These limits depend on the number of bedrooms there and the average rent amounts in the area.

HUD requires local housing authorities to give out 75 percent of its Section 8 subsidies to "households that take in less than 30 percent of their area's median" with a "cut-off at 50-percent-of-median-income". Section 8 Housing uses a set formula to determine the amount of rent.

Who pays the rent to the Landlord?
The Tenant pays one of the following to the Landlord:
a) 30 percent of adjusted income
b) 10 percent of gross income
c)  the portion of welfare assistance designated for housing.

The Public Housing Authority of that locale pays the landlord the difference between the 30% of the household's adjusted income [or b) or c)] and the unit's rent. The contract rent must not exceed* the HUD-established fair market rent for the area. HUD pays the PHA in each area an administration fee to cover costs of running the program, including accepting and reviewing applications, recertifying eligibility, and inspecting the rental units. (*There amy be regional differences that vary this guideline.)

The Section 8 Rental Certificate program increases affordable housing choices for very low-income households by allowing families to choose privately-owned rental housing. Families apply to a local Public Housing Authority (PHA) or administering governmental agency for a Section 8 certificate. The administering PHA inspects the housing units to make sure they comply with HUD quality standards. 

Between the Voucher and the Certificate programs, over 1.4 million households may enjoy higher quality housing if they meet the HUD and Section 8 Guidelines. The goal is to provide assistance for qualified low-income families so they may live in affordable, decent, safe and sanitary rental units.

What are the Landlord's responsibilities?

The Landlords must receive training about Section 8 Rules and Guidelines. Landlords must agree to accept no more than fair market rent. Certificates are "tenant-based" which means that the qualifying households may use them in any rental unit where the Landlord agrees to participate in the program.

More about Section 8


The first time I took the training, I ran in the proverbial other direction! More recently, when I took the training, the rules had evolved. Rents were based on Market Values and Sensible Landlord Inspections were allowed. Tenants could be held responsible for conditions in the rental properties. Total change...

PAST - understanding the past is so important! In the “old” days, Landlords were so heavily restricted on visits to check conditions of the homes and on what could be said to Tenants that generally nothing was known until the people moved out. It was an unbalanced situation that benefited no one!

PRESENT - thankfully, the rules have changed. The first thing one should do is take classes about Section 8 housing. Know what the program offers to see if it is the right investment move for you. Both single family training and multi-family training options are available. The rules and regulations are more balanced and more clearly stated when I took a recent training session — very responsible towards the Tenants and towards the Property Owner.

My suggestion?

For Atlanta Investment Property, Section 8 is an opportunity to investigate. If it feels right for you, follow the Landlord Guidelines and Rules. Then, in addition to the Tenant's monthly check, you will receive a US Governent supplemental check for each unit.

Only other responsibility is to think of how to enjoy your new earnings!

Infographic courtesy of Glendale CA.

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Comment balloon 6 commentsLynn B. Friedman • September 10 2019 04:23PM

Comments

Certainly an indepth discussion of this area of real estate . in which not many .  of us are most probably very well educated.

Posted by Sally K. & David L. Hanson, WI Realtors - Luxury - Divorce (EXP Realty 414-525-0563) 9 days ago

Good morning, Lynn B. Friedman section 8 apartment AND home rentals are a Blessing for so many, especially women with children.... the owners of those units are guarenteed rent.... it's a good deal all the way around.... the units are inspected and most investors in my town are always happy to rent to a section 8 applicant.... I remember handling many in the past....

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 9 days ago

Hello Lynn - information is powerful. You once again prove this in this post.  The term "Section 8" is one that brings up many issues/misconceptions and your well-written post explains the nuances that will assist each person involved.  Your suggestion of education is quite valid.  It's one that needs to be fully investigated/explored.   

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 9 days ago

Hi Lynn!  Love the new rules! The less restrictive the laws are on the owners (especially the ones who actually CARE about maintaining their investments!), the happier (and safer) everyone will be, especially the tenants. 

Posted by Debe Maxwell, CRS, Charlotte Homes for Sale - Charlotte Neighborhoods (www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310) 8 days ago

Lynn up until a couple of years ago our local Financial Housing Authority who provides subsidized financing for first time buyers was allowing the Section 8 voucher to be use towards a monthly mortgage payment.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) 8 days ago

Super! Thank you for sharing this info, and thanks to Debe Maxwell I saw this post.

Posted by Michelle Carr Crowe,Altas Just Call...408-252-8900!, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty) 3 days ago

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