It's estimated that over half of all Americans now struggle to afford housing. And as rent prices continue to increase while wages stay the same, we can only expect this problem to get worse.
That's why programs like Section 8 housing vouchers are so important. If you decide to become a Section 8 landlord, you not only help the St. Louis community, but you also greatly increase your tenant pool.
So what exactly is Section 8? And how does the HUD determine if your rent is reasonable for Section 8? In this guide, we'll be answering these questions so you can determine whether or not it's right for your rental properties.
What Is Section 8?
Section 8 is a program that provides housing vouchers to people in low-income demographics. These vouchers will pay for some or even all of the rent.
They can be applied to everything from houses to apartment buildings. As a landlord, you can sign up to qualify for Section 8 housing. This greatly improves your tenant pool.
However, it's not always easy. Not only will you need to comply with the local housing authority, but you'll also need to make sure that you're charging a reasonable amount for your rent.
Make sure to check out this guide to learn more about how Section 8 housing works.
How Section 8 Determines If Your Rent Is Reasonable
When looking at your properties Section 8 will inspect a variety of different factors to see if your rent is reasonable. That starts with where the rental property is located and how large it is. However, it can also extend to things like:
- How old the property is
- The condition it is in
- How it's rented
- Included amenities
- Utilities
Section 8 just wants to confirm that your property is being offered at fair market rent prices. One way you can determine this is by using our free rental analysis services.
The HUD will inspect your rent when you first apply. That being said, they will also check if you want to increase rent or if a tenant's lease is up for renewal. At any point, they can also order it to confirm reasonable rent.
How a Property Manager Can Help You Become a Section 8 Landlord
Being a Section 8 landlord can come with a lot of benefits like guaranteed rent payments and lower vacancy rates. That being said, it can be challenging to get accepted.
A property manager can help ensure that your property is complying with all of the necessary rules for this type of program. What's more, they'll ensure that you get the most money out of it as possible.
Want to Make Your Rentals Easy? Contact PMI STL Metro
We hope this guide helped you learn more about how Section 8 works. Here at PMI STL Metro, we are devoted to helping landlords regardless of their rental properties.
If you want to become a Section 8 property in St. Louis, we'll take care of all the details. Or if you think it's not right for you, we'll help you explore other strategies to maximize your profits and tenant pools.
So if you're ready for the property management help you need, get in touch with us today.
