Pros and Cons of Section 8
Could Section 8 be right for you?
There are both pros and cons involved with Section 8, also known as the Housing Choice Voucher Program.
Pros:
1. The program assists those families that may otherwise be homeless.
2. The homeowner is assured of receiving timely monthly payments of the subsidized portion of the rent.
3. The tenant is assured a safe and healthy home.
4. Section 8 pre-screens tenants. (It is a very basic screening so further screening is recommended).
5. The parties will initially agree to a one-year lease and tenants tend to stay for several years thereafter.
Cons:
1. There is a large amount of documentation involved for both the tenant and homeowner.
2. There can be delays in the inspection required by Section 8 before the tenant can move in. A failed inspection results in further delays while the homeowner rectifies failed items.
3. The homeowner may face substantial cost for repairs in order to pass the required inspection.
4. The Fair Market Rent is not determined by either the tenant or the homeowner. The rental unit must pass a “rent reasonableness” test.
5. It can be several weeks before the homeowner receives the first rent payment.
There are good Section 8 tenants as well as bad, but that is the case in any group. As with all rental properties, maintenance and care concerns can be reduced with good communication and regular inspections.
The Section 8 program is not right for everyone but can be beneficial to both tenant and homeowner under the right circumstances.
