I have a house in Casa Grande AZ. I’m told by the section 8 folks the most they can pay out is $900. I find that extremly low. Now Im wondering if it is a good idea to rent to that segment of the population. Would it be better to find someone else? I would perfer the section 8, doesnt the renter have to pay as well, or are there laws preventing that?
In the Arizona market, depending on the size of the house and location, $900/month is actually very good. Even in desirable southeast valley areas where 3000 sq.f.t houses sell for over $500k, only rent out for no more than $1200/month. Arizona is a rapidly appreciating market, but rents remain low. Have your local property manager run a comparative market analysis to pinpoint what the rents are going for in your neightborhood. This will give you a better idea of what you could charge.
Sound advice from focusagent.
Do your research, you will have to determine what the prevailing rents are for your area – here is a link for fair market rents according to HUD. It’s listed by state and then by county.
http://www.huduser.org/datasets/fmr.html
If you don’t have a property manager, you will want to call the people who do have properties for rent to find out what they are charging as well. And, don’t be afraid to ask them questions. How long have you owned the property? How long has it been vacant? How long was your last tenant in the property? Do you offer any incentives? To assist you with your decision.
My area isn’t a great rental market right now – pretty much anyone can buy a house as long as they are breathing and have any sort of a job. That will change when the interest rates go up and people become priced out of home ownership. I do offer an incentive, I give my tenants $50 off a month if they pay me by the first of the month. If they are one-day after the first, the rent goes immediately to the amount on my lease (the $50/off is listed on the lease as well, along with my terms), but the rent isn’t “late” until five days after the first. $50 a month adds up to $600 a year - and everyone wants to save money.
I don’t rent to Section 8, however, many people on this board and people I know around my area do, and they’ve had great experiences.
Good luck to you!