Affordable housing isn't easy to find. Since the global pandemic, the housing market has continued to steadily rise. This has created an increased demand for rental space.
This also means some people are being pushed out of the market due to a lack of funds. That's where Section 8 comes in. Federal and state governments encourage landlords to provide affordable housing by guaranteeing payment.
Learn how Section applies to you as a Florida Landlord.
What Are Section 8 Rules in Florida?
Section 8 is a system sponsored by local and federal governments. It incentivizes landlords to accept lower rent in exchange for pre-screening tenants. The government is responsible for a portion of the payment.
Housing Choice Vouchers
It works by issuing potential tenants housing vouchers funded by the U.S. Department of Housing and Urban Development (HUD).
They don't directly supply housing for people in need. Instead, the HUD funds rent subsidies. Those who qualify are eligible to select housing of their choice. This includes apartments, townhouses, rental homes, and more.
Housing vouchers are handed out by Public Housing Agencies (PHA).
Do Landlords Have to Accept Section 8 Housing Vouchers?
You can decide to accept or reject a potential tenant who wants to use Section 8 in Florida. In most states, landlords have a choice, but not all. Rejecting them would fall under discrimination.
Benefits of Being a Section 8 Landlord
While you are not legally obligated to house anyone with the voucher in most states, you may want to. There are downsides, but you should also consider some of the advantages.
Predictable Income
Landlords receive 70% of the rent on the same day each month. This is the part of the rent that local or state agencies must cover on behalf of the tenant.
Some landlords have no problem collecting rent from their tenants on time. If this is the case, Section 8 has very few benefits to offer you.
Tenant Screening
Background checks are an important aspect of owning a rental property. When done properly, it saves you the time and energy of dealing with evictions.
Imagine that task is assigned to someone far more reliable and experienced than yourself. That is what happens with Section 8 tenants.
The downside is that if for some reason they need to be evicted, it's much harder to do than with your other tenants.
No Advertising Required
The market is great for renters now, but it won't always be. When it settles back down, you'll appreciate cutting down on your advertising budget.
The PHA offers free websites that you can advertise on in most states. Of course, there are exceptions. They want to place tenants in housing as much as you want your rental spaces filled.
Learn More About Section 8
The main goal of any landlord is to make a profit. You're running a business after all. With the rising real estate market, there's the opportunity. However, utilizing Section 8 mitigates so much risk.
It's up to you to decide whether you believe you can earn a better income by taking in tenants from this program.
For more information, contact us today!
