Section8 HUD Rental Increases - Posted by carl

Posted by Rich on August 24, 2006 at 24:25:54:

Depends on what the rental market is doing. Section 8 has some regulations about keeping rents within market rates. You also have to consider what the value of the rent voucher is. The Section 8 recipient is told before they look how much their voucher is worth and your rent increases do not affect this amount, only increases in the Section 8 guidelines will make this go up. So if your tenant has a small income and Section 8 paying the whole rent, then you will find that the increase will go unpaid because the tenant simply can’t do it and eat or get to work.

Section8 HUD Rental Increases - Posted by carl

Posted by carl on August 23, 2006 at 20:03:26:

I have a property where the tennant is section 8.

What’s a fair percentage to raise the rent?

Should I raise it every year?

Just trying to establiosh some guidelines



Don’t Count on Section 8 - Posted by Jimmy

Posted by Jimmy on August 24, 2006 at 06:58:13:

I have had a ton of Section 8’ers over the past 6 years. a few words of wisdom for you:

  1. you can raise the rent 500% when your lease is exended, but that does NOT mean you will get one more penny out of this tenant. There are rent reasonableness standards for every geographic area in the US, and THAT determines whether Section 8 will honor your raise.

  2. Sometimes, the rent reasonableness standards GO DOWN !!! (if prevailing rents for an area go down, so will your Section 8 rents. happened to me in Tyler, TX).

  3. back in 2000-2001, it seemed that the rent max got bumped every 6 months or so. haven’t seen a bump in a long time.

  4. know your market. if Section 8 rents are higher than what you could get from regular tenants, BE VERY CAREFUL. analyze your purchase based on true market rents, and not the elevated Section 8 rents. you cannot depend on Section 8 for tenants or rents. I used to have 55% of my rent from housing. Now, it is closer to 15%. there have been very few new vouchers coming out. you cannot predict HUD funding, anf you do not want to become a welfare case yourself.