Over 2.1 million American households benefit from housing vouchers. Largely these vouchers are provided as a result of Section 8 housing.
But what is Section 8 housing? How do landlords pay for their properties if renters are paying with vouchers?
We'll cover all this and more in the article below.
What is Section 8 Housing?
Added in 1974 as part of the Housing and Community Development Act, Section 8 was conceived with the intent to help low-income renters by providing vouchers for assistance.
Led by the Department of Housing and Urban Development (HUD), they created the Section 8 Housing Choice Voucher Program to help folks find affordable housing. This includes helping the elderly and disabled, as well.
How Do Section 8 Housing Vouchers Work?
Depending on where you live in Fort Lauderdale, you may find rent prices all across the board. Let's say the average price for a two-bedroom rental is a clean $2,000 a month.
For those without much income, that's a tall price to pay just to live. Under section 8 housing, we take a low-income, elderly, or disabled person's annual income, say, $26,000. That breaks down to a little over $2,100 per month.
Thirty percent of that monthly income is then paid to the landlord by the renter, as that is the threshold a person with Section 8 housing must meet.
For a $2,000 rental, that means the landlord is getting shy of $700 from their renter. You might think that's ludicrous, but here's where the vouchers come into play.
The Housing Authority pays the remaining cost of the rent for the renter who qualified for Section 8 housing, meaning the landlord receives the remaining $1,300 from the government.
The renter gets proper housing, while the landlord is being compensated the remaining balance by HUD, based on the area's median housing rates. Win-win.
If you need a little more to understand what it looks like renting to section 8 renters, here are some additional resources that can help you out.
How Section 8 Real Estate Works
As a renter, you need to qualify for section 8 housing. This means going through a fairly lengthy process with the government to qualify for benefits.
Often it's those with physical infirmities that are quickly guaranteed these benefits, while others may wait in the system for years.
This process is "Tenant-Based Section 8." Once a tenant receives a voucher, they must follow strict rules to retain it. However, they are able to move properties and can still retain the voucher.
As a potential landlord, you need to know about "Project-Based Section 8." This is where a voucher is attached to your specific rental property. This means if your Section 8 qualified tenant moves, they don't take your voucher.
To qualify for a Section 8 housing voucher as a landlord, you'll need to go through your local Housing Authority. Your property will be inspected and you'll be required to keep it safe and livable for your future renters.
Section 8 is Great
Section 8 housing is essential for the community's weakest people. It provides a lucrative opportunity for renters while also giving them an opportunity to help those in need.
Interested in renting out your property and located in the Fort Lauderdale area? Get your free rental analysis today. Don't sit on an empty property; start renting and earning passive income with Section 8 housing.