SECTION 8

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Section 8 Pros

Section 8 is a program that gives people with genuine financial constraints an opportunity to have a
comfortable home for their families during this difficult time.

Investors are generally hesitant to let out their homes to section 8 tenants due to all the false negative perceptions surrounding it.

The truth is that majority of the section 8 qualified tenants are good families in an unfortunate financial situation.

There are also different category of programs depending on the neighborhood and amenities provided. Like the walker settlement voucher & high opportunity area.

What it means for investors is that we have a rare opportunity to invest in an upcoming neighborhood and provide a home to a family in need while easily earning a cap rate of 10% and eventually seeing our property values increases significantly.

Here are some positives for investors listed below

  1. Rent guaranteed by PHA.
  2. Great demand but very limited supply of qualified homes.
  3. Screening for felonies & drug usage done prior to qualifying for section 8 housing.
  4. Above market rent.
  5. Reasonable increase in yearly rent is taken care by PHA.
  6. Investment in upcoming neighborhoods means low investment to acquire property and make it section 8
    compliant.
  7. Huge potential for major capital appreciation in a 5-6 year horizon.

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