I am looking for my first property and may end up with a Section 8 type of unit/location. First, I want to know if Section 8 is good or bad to investors in Houston. I’ve read mixed reports, depending on where you are.
Also, how do I determine how much I can get from Section 8 for my property? I found this on huduser.org:
Final FY 2010 FMRs By Unit Bedrooms
Efficiency One-Bedroom Two-Bedroom Three-Bedroom Four-Bedroom
Final FY 2010 FMR $661 $735 $892 $1,189 $1,495
One property we are looking at is a duplex that is 3/2 on each side. Meets all requirements and is relatively new.
It says 3 bedroom is $1,189. What does this number mean to me?
How much I can charge?
How much I will get paid?
Is it only bedrooms they look at? or do they look at the location? baths? garage? lot? condition?
Curious cause it we can get $1189 per side, that would be great.
Thanks
ok, so i read a little more and got this:
“FMRs are gross rent estimates. They include the shelter rent plus the cost of all tenant-paid utilities, except telephones, cable or satellite television service, and internet service.”
That helps a little. Basically that amount means what the state says is “Fair” including utilities. But that doesnt say if it takes any other factors into account, or does it say exactly what a landlord can charge and receive from the state.
Say, I have a 3/2 duplex and i could get $1000 on the market plus utilities. Does that mean the state will be willing to pay me $1189 (see first post) and I can get any qualifying section 8 tenant in there?
They pay you $1189 only if the landlord pays all utilities.
Not such a good deal. Believe me, a Section 8 tenant can use much more than189 in utilities every month.
In the summer, the sprinklers (plural) will run 24 hours per day, so the kids can play in them if they ever want to get up from in front of the tv. The air conditioning will be set to keep the house at 60 degrees.
In the winter, the heat will be set to keep the house at 96 degrees, and the windows will be open because it is too hot in the house.
With any tenant, and especially with entitlement tenants, you are better off to let the tenant pay utilites. So if you want to rent to section 8, take your $1000 and make the tenant pay their own utilities.
exactly. That is what I am wanting to know. I would never pay the utilities, so what am i paid if they pay them? If its only like $8-900, but I can get $1000 on the open market then I’d rather not go section 8. This is what I need to know!
I am obviously new, but i know nothing about section 8 and want to at least learn the ropes, whether I do it or not.
Thanks for the response…any other help will be appreciated.