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To Section 8 or Not To Section 8

By
Real Estate Agent with RE/MAX Associates West Bartlett, Il. 60103

I have had so many people over the years contact me when running ads for my rental properties..Anyone who has rentals knows that people come out of the woodwork with some pretty unusual reasons as to why you should rent to them, even though they have no job, or too many kids for the size of the unit, or more dogs than you yourself would have in your own home.  And many times I have been lenient with tenants, because I know that everyone falls on hard times, sometimes. Also, if you change renters each year, the expense to you is much greater, because of the maintenance that often occurs in between tenants. If they stay over a year, that expense doesn't occur until they leave.  

 

The Section 8 Housing Voucher is a type of federal assistance provided through the government to help subsidize low income families and individuals. There are vouchers, which are project based or tenant based subsidies. Project based is where the family or individual is limited to a particular apartment complex. Tenant based is where they are permitted to look in the private sector for a unit. Obviously the lessor must be willing to take Section 8 housing in order for this process to work. Then lessee is bound (usually by their income) to only a percentage of the rent - generally no more than 30% - and the balance is paid directly to the lessor by the Public Housing Authority based on their parameters of fair market rent.  More information on this subject can be found here

During this time when many houses are on the market for sale, often sellers are opting to try to rent them just to maintain a cash flow.  I think that Section 8 Housing is the way to go at this point. The lessee has certain rules that they need to follow in order to stay in the program. They can be removed permanently if they damage the unit or don't pay their share of the rent.

 

 

 

 

www.CarolStreamRealtor.com

 

rentals in Carol Stream, Il.

rentals in Bartlett, Il. 

 

 

Homes for sale or rent in the Western Suburbs of Chicagoland. 

 

 

Comments (16)

Mary Warren
Las Vegas, NV
Section 8 is a really good deal for the landlord...guaranteed rent. and on time too.  Plus the state puts up with no hanky panky from the tenants...inspecting it once a year.
Apr 11, 2008 02:12 PM
Laura Resnick
RE/MAX Associates West Bartlett, Il. 60103 - Carol Stream, IL
Carol Stream, IL 630-975-0615, RE/MAX Unlimited

I think that it is the ONLY way to go right now.  And the pool of lessees is quite large. 

I think a lessor would be foolish to not at least check it out.

 

Apr 11, 2008 02:16 PM
Eric Bouler
Gardner Realtors, Licensed in La. - New Orleans, LA
Listening to your Needs
Sec 8 rentals are usually in bad areas of town here. Its great for the landlords as neighborhoods do not matter to the government. They get a lot of money for places that are not worth much. Its just my view in this area.
Apr 11, 2008 02:26 PM
Toni Hogan
ToniHogan.com - Houston, TX

I've found a niche in the rental market. I am an "exclusive tenant rep" if there is such a thing. Approximately 98% of my clients and prospects are Section 8 and DHAP (a similar program for hurricane survivors for Louisiana). Although there are many listings in our MLS for Section 8 available properties I still tend to make calls on those that aren't listed as such.

I just can't seem to wrap my mind around why an investor would not seize the opportunity to secure his/her investment with guaranteed revenue. A major issue in this area is the tendency to generalize based on media reports and a few bad apples. All of my clients/prospects find me via my website. They either work and/or attend school. They are ALL looking for decent homes on good neighborhoods. They take pride in where they live and generally care for the property as their own.

I think that Sectionn 8 is a smart choice for an investor. Renting to a non-section 8 tenant who qualifies on the basis of income and credit is not always a sound guarantee. People lose jobs everyday. Just my two pennies. I am glad you brough this up. :-)

Apr 11, 2008 03:30 PM
MAUREEN STACCATO
Springfield, MA
QUOTE> 

I have turned away Section 8 requests in the past because 1) I don't like the idea of the government being involved in my properties and 2) There are specific rules and regulations that need to be followed 3) Didn't have the time to research the possibility 

_____________________________________________________

 

I don't know where you live but here it is illegal to turn away a renter because they are on Section 8. Besides being a Realtor- I have property managed for over 8 years and you can not turn away someone because of it. It is a law suit waiting to happen.

Keep this in mind and remember, everyone has the right to apply, everyone no matter how the resources are has the right to rent and Section 8 is guaranteed funds!!

 

Good luck.

Apr 11, 2008 11:52 PM
Toni Hogan
ToniHogan.com - Houston, TX
Landlords are not required to participate in the Section 8 program. Particiapation in the program is voluntary. If they do opt to accept Section 8 they must treat the tenants as they would any other applicant with respect to Fair Housing Laws.
Apr 12, 2008 01:39 AM
Laura Resnick
RE/MAX Associates West Bartlett, Il. 60103 - Carol Stream, IL
Carol Stream, IL 630-975-0615, RE/MAX Unlimited

Toni:  I agree. But it took me a while to really understand the program.

Maureen:  A landlord here (Illinois) does NOT have to participate in the Section 8 program, as stated by Toni in Texas. 

 

 

 

 

 

 

Apr 12, 2008 02:02 AM
Mary Strang
Viroqua, WI
I am so happy to no longer own any rental property, it was such a pain! Good luck to those who can handle the job and responsibilities! To me it was just not worth the investment or the aggravation.
Apr 13, 2008 07:52 AM
Anonymous
Section 8 Worker
It is against the law for ANY owner with more than three units in their building to refuse to rent to a person with Section 8. Do not let anyone tell you different. If a owner refuses to rent to a person due to the fact that they have a Section 8 certificate, they can be sued and WILL have to pay! I suggest you take a look ay the HUD and Section * nhousing rules for your area.
Apr 30, 2008 10:12 AM
#9
Laura Resnick
RE/MAX Associates West Bartlett, Il. 60103 - Carol Stream, IL
Carol Stream, IL 630-975-0615, RE/MAX Unlimited

Section 8 Worker -

 

I don't have the type of property that you describe - Thanks for the info though.  

Apr 30, 2008 10:25 AM
Toni Hogan
ToniHogan.com - Houston, TX
The HUD "rules" on the hud.gov website explicitly state the landlords are not required to participate in the Section 8 program. It is strictly voluntary. If it were required it would make my job a heck of a lot easier since 98.99999% of my prospects are Section 8 tenants. :-)
Apr 30, 2008 11:10 AM
Anonymous
charli

Does Sec 8 have electronic direct deposit available?

Feb 03, 2009 02:54 AM
#12
Laura Resnick
RE/MAX Associates West Bartlett, Il. 60103 - Carol Stream, IL
Carol Stream, IL 630-975-0615, RE/MAX Unlimited

Yes, Section 8 Housing (at least in DuPage county) deposits directly into the landlords bank each month.

 

 

Feb 03, 2009 03:06 AM
Anonymous
D Brown

I am wondering if someone can help me find a house/townhouse for rent that accept sec 8 in the western suburbs in cook county.

Apr 13, 2009 08:35 AM
#14
Anonymous
Lorie

Yes Section 8 can be a diamond in ther rough! Hard times like this especially. I think section 8 is a great opportunity two ways,for Landlords (which I have sort of experience on this side) and for Tenants which I currently experience this side.

Landlords reap the benefits of having stable secured monthly rent into their bank account,they get a property tax credit,they also qualify for other programs in which the government has like the weatherization program, 50/50 between Landlord & Tenant for furnances,windows e.t.c.

Also if a family stays in the property for a specified time ,the government not only helps with the rent but they have Home Ownership programs that will buy the home and tenant can turn a rental into a mortgage. The tenant would have to go through the program and meet requirements.

So if a Owner has properties that are becoming troublesome financially because they sit on the market vacant and taxes pile up. Or even if a family has a home way bigger than they need and they simply can't afford it anymore,what about thinking of a family that would benefit from the space. Letting Government funded programs like Section 8 is a smart move.  

Note: Not all Section 8 voucher holders are the same,I say this because I am a holder! thank God he blessed my family. We don't stay in a crime ridden area,or in a project based unit. Neither would we want to! Section 8 enabled my kids to live in a area wheere they didn't have to worry about being shot,they get  a better education,I haven't been robbed like before we moved to our home. There is an enrichment in our lives. A Owner may be helping a struggling family who just wants the american dream. Decent people with a love of God,respect and dignity. People that need to be creative in their way of survival.

Needless to say I have enjoyed my home here,I am a entreprenuer working towards building my business,plan on going back to school..education is the key to escaping poverty,so is a good home in a good environment. My children must have a decent opportunity in education.

Currently,I am sad to say,I have to find another home because my Landlord wants to sell. I wish him well, but moving on with my family may not be that easy. I do need help,because times are rough and I have small ones and of course a lack of resources. regardless of the matter he set the day to July 1st. I am praying for God to bless us with something even better.  

My needs are a 5-6 bedroom home,3.5-4 bths at the least 4,000 sq ft typically comfortable. I have a large family we would like to stay in Dupage county. We like our area in Bartlett,however Barrington,Barrington hills,Hoffman Estates e.t.c offers homes that would suit our family well! The possibilities are endless Section 8 can be accepted anywhere depending on Owners.

Thanks for reading,If anyone can help my family please contact me.

Jun 13, 2009 02:49 AM
#15
Anonymous
Curtnall Williams

I am a 57 year old woman on disabiliy,I have section 8 and I am now looking for a 4 bedroom home for rent. It would be occupied by myself,my adult daughter and 2 grandchildren ages 15 and 12(one boy and one girl). I need to stay in the Dupage County area. I appreciate this web site for the vast oppions and the possitivity. My need is immediate if there is someone who can accomodate us. contact me at cocomokaat@yahoo.com  thank you

 

 

 

 

 

 

Oct 06, 2009 07:31 AM
#16