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