Did you know that families stay in the Section 8 program for six years on average? Housing assistance can be a great way to get a family the help it needs.
If you've never heard of Section 8 housing, you may be missing out on a potential resource.
Fortunately, you've come to the right place.
In this article, we'll explain Section 8 in terms that are easy to understand. We'll also explain how Section 8 decides on reasonable rent. As a landlord, this is a topic you need to understand, especially if you decide to offer Section 8 housing. All you need to do is keep reading.
What Is Section 8?
Section 8 housing is formally known as the Housing Choice Voucher Program. It is a program that both individuals and families can apply for. If this program approves you, the federal government pays a large portion of your rent.
This program was designed to help low-income people or families, senior citizens, and disabled people. However, Section 8 is not the same as public housing.
In the Section 8 program, you can choose any property you wish to live in as long as it's approved by your local Public Housing Agency (or PHA). This isn't limited to properties owned by the government.
It is a landlord's responsibility to maintain Section 8 housing as much as they would maintain any other housing they own. Landlords are also subjected to a PHA inspection of all units before someone can move in.
Some Section 8 housing voucher programs even allow people to participate in a rent-to-own program.
How Section 8 Decides if Your Rent Is Reasonable
If you are a landlord, then you'll need to know when Section 8 will be examining your rent. If you charge fair market rent, the odds are good that your rent is reasonable. As a result, you'll be considered Section 8 housing.
The PHA will typically only evaluate your rent reasonableness on a few occasions. These include when first trying to be approved, when increasing rent on Section 8 housing, and when a lease is up for renewal.
To determine if your rent is reasonable, one of the things the PHA looks at is the local housing market. Specifically, the PHA compares your property to other properties in the area that are similar in size and date of construction.
If the unit is part of a rental, then the PHA will compare it to other units on the property.
If rent is not considered reasonable, you will not be able to be considered Section 8 housing. This means you'll need to turn away people who have vouchers.
Reach Out to Us
Now that you've learned all about Section 8 and how it works, do you have questions on any other important housing topics? Or do you have questions about the many services we provide?
If your answer to either question is "yes", then you should reach out to us! Simply fill out the form and we'll get back to you as soon as possible. You could even call us if you'd rather get an immediate answer.
At PMI Loudoun, we take pride in being a property management company you can trust. Let us prove that to you- reach out to us today!
