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How does the Section 8 HUD program apply to rental properties?
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well it depends on what state your in in most states the gov. puts a poor family in your renteal property and cuts you a check for the rent and the also ins. them for damage they might cause but as i said you have to check your state policys for what will work for you beucse some states use to send the check to the family and then they would crack it up and not pay you and rip the copper out of the walls
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section 8 hud is a federal program that is administered through local govt. so there is a local group in your city called 'my city housing' or 'housing authority of my city' or whatever. . . They give people vouchers or whatever they are called in your area that basically say they are qualified for such and such a rental unit (3 bedroom for example) then there are many rules as to what they can pay for the place. It depends on crazy stuff like the type of heating and so on so the end number is never the same, just in the ballpark. That is your house/apartment will meet a certain criteria that will be worth a certain rent. That number cannot go any higher. If you try to collect more from the tenant for example you can be in some serious trouble, so if its not enough don't even consider section 8, if it is then let the people know by advertising section 8 ok in the ad and you will get many calls. . . What happens next is the person will qualify for some percent of the rent. (If they are not already qualified forget it, it takes a long time to get qualified.) For example you have a 3 bedroom that can be rented for $750 (according to 'your city housing'), the family will qualify for say $600 of assistance. The begining of each month you will recieve a check in the mail for $600 and the tenant will be paying you the remaining $150 (they will want to pay this to you and it is so little expect that it will be easy to collect, their alternative is getting kicked out of the program and having to pay the full rent somewhere). The program backs it all up if they default or do damage or whatever. So in the end you will get the money the only problem is that on the market you may be able to get more.. . You still get to screen the tenants as you normally would and you only have to accept them if you want to (it's not an all or none situation either some houses can and others not if you have more than one). It is now simply an opt-in program. There is one final step that you must pass an inspection. It is a safety inspection so if it doesn't pass you might have to make some changes. They are always a good idea cause even if they seem silly they are the type of thing you could be sued for if someone got hurt because of it. (That is why they make you fix it so they don't get sued).. . good luck.
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