Low Income

I think I found a need for lower income housing, but I’m not sure of any specifics of taping into the market (housing prices are high). Is Section 8 a good place to start and what are some of the specifics of the program?

Thanks for your help.


Is section 8 the place I want to start or should is this for the more experienced investor?

You should certainly know about it and be ready to accept section 8 tenants when they apply, not being ready for it could limit your tenant pool greatly in some markets.

I would not start off with section 8. I personally don’t like the section 8 program. Every year they do an inspection and it ends up costing a ton of money to stay in compliance. They will ask the tenant “anything you want fixed” and they will bring out a 5 mile list. Since they are section 8 you have to fix it.

Also I have had tenants damage bathrooms, cabinets, counters the day before the inspection in order to get new stuff.

Here in MA its very hard to evict when the tenant has repairs, even if they damaged it themselves.

I have had a very good experience with Section 8 and believe that it is fine for new landlords. Having said that, I am not disagreeing with AzonPM. Although Section 8 is a federal program, the implementation is local. Here in my little corner of Ohio, a little damage to a cabinet, countertop, or bathroom would not even merit a comment from the Section 8 inspector. All that is required is safe. However, I am sure that in all the socialist leaning areas of the country, they expect every low income loser to have the newest stainless steel appliances and a big screen TV. After all, certainly even lazy, non-working crack addicts deserve everything that a hard working middle or upper class American has.

I guess my point is that you need to find out about the local situation. You need to meet successful local investors. Join your local REIA.



I wish I had time to write about section 8, its crazy here. Just like evictions are.

There are two agencies that distribute section 8 funds here HAP and SHA. Both inspections are different. HAP the place must be PERFECT. SHA a little less than perfect yet they require blinds/shades on all windows among other things.

I did a renovation for an owner cost about $7000 almost everything was brand spanking new. The bathroom was gutted and redone except for the toilet. The toilet was a little dirty so he failed the unit. A few paint drips were on a hard wood floor, he wanted them cleaned. A tile in the kitchen had a scratch, he wanted it replaced. After that I had enough and told him to leave and we would not be renting to section 8. As he walked out he said the whole house needed to be resided too.

Good luck with section 8 tenants here also. Screening is just as important if not more important with section 8 tenants as non section 8 tenants. With good screening you can find some great section 8 tenants.

Inspections are relatively smooth here. Unit must be safe and inhabitable.

The inspector where I invest goes through the whole place and wants everything safe. But I have never had him request any of the things listed in the posts above.

There are rules and you have to follow them, but the inspectors are human, so if they sense weakness they will take a more aggressive approach with you. Stand your ground and see if this inspector fights back, if he does then you are probably better off not doing Section 8. I would do Section 8 for properties that you are hands on with. But if you have a management company take care of your building then I would stay away from Section 8