Popularly known as Section 8, the Housing Choice Voucher (HVC) program is a federal government initiative aimed at helping low-income families, elderly individuals, and individuals with disabilities to afford rental housing. As a landlord with voucher tenants, it’s your responsibility to ensure that the housing provided is decent, safe, and sanitary. The rent should also be reasonable.
There are numerous benefits that the program offers to landlords. However, there are several misconceptions that paint Section 8 in a negative light. To help clear up these misconceptions and provide accurate information, we have outlined the top five myths about Section 8. That way, you can understand its advantages.
Myth 1: Voucher Tenants and Non-Voucher Tenants must have different rental rates
Landlords have the freedom to charge the full market rent price. It can even exceed the Fair Market Rent determined by the U.S. Department of Housing and Urban Development, regardless of the tenant.
However, the housing authority must assess if the rent is reasonable based on the unit’s size and location. Furthermore, Housing 8 tenants are not permitted to pay more than 40% of their income on rent. Both of these factors should be taken into consideration when setting a rent price.
To get a better understanding of the local rental market, you can also consult rental comparables in your area. This information can give you an idea of the average rent prices based on the square footage, number of bedrooms and bathrooms, and amenities of other similar rentals.
Myth 2: Landlords earn less from Voucher Tenants.
Landlords will not receive less rent from Section 8 tenants than from non-Section 8 tenants. It is true that Section 8 tenants must only pay a portion of the rent. However, the housing authority will pay the remaining portion directly to the landlord on a monthly basis. In some cases, this can actually lead to more consistent and reliable rent payments. The housing authority is responsible for paying their portion of the rent on time.
Myth 3: HVC tenants cause more problems than Non-HVC Tenants
Misconceptions often lead to negative reputations for HCV tenants. People perceive them as tenants who cause property damage and have a history of back-paid rent. However, there is no evidence to support this claim. There is no proof that damage and non-payment is more prevalent among HCV participants than non-HCV tenants. That’s quite contradictory given the fact that majority of the monthly rent is directly paid by the local housing authority.
To ensure that you find reliable tenants, a comprehensive tenant screening process is essential. It should not be affected regardless of whether the potential tenant is part of the HCV program. The screening process must be the same for all applicants to stay compliant with Fair Housing laws.
HCV tenants are ideal for landlords who aim to minimize long-term vacancies. On average, HCV tenants reside in the same unit for 7-8 years. This results in fewer tenant turnovers, saving you time and money.
Myth 4: You can’t evict a Section 8 tenant despite committing lease violations
The signed lease agreement applies to Section 8 tenants just like any other tenant. If a tenant who participates in the HCV program breaches the lease agreement, they can face eviction. They should comply to the lease just like non-HCV tenants.
Lease violations can range from failing to pay rent or other fees specified in the lease to repeatedly disregarding the terms and conditions outlined in the agreement. It’s important to remember that HCV tenants are held to the same standards as any other tenant.
Myth 5: You have to rent all your units exclusively to HCV Program Tenants
Owners of multifamily properties have the option to choose which units they would like to rent to HCV tenants and which ones they would like to rent to non-HCV tenants.
You can market your properties to both Section 8 Tenants and Non-voucher tenants. Publish a listing on Padleads to get several rental applications. Landlords or rental agents can then screen applicants based on their policies. It shouldn’t matter if they are under the HVC program or not.