Section 8 Rent Increase?

Purchasing a complex that is currently all Section 8 tenants. The complex is in a quickly appreciating market, and current rents are already below average for the area, and market rents continue to increase.

Does anyone know the government policies around rent increases for Section 8 housing?

Thank you all!

I know in my area I can increase it

jr,

You can only raise the rents on Section 8 tenants at the annual renewal. About 60 days before the renewal, Section 8 will send you a letter about the renewal and will ask you if you want to increase the rent. That is your chance to do it.

Mike

There are maximum amounts you can charge dependent on the bedrooms, number of children, utilities included/not included, etc. There is no benefit to you or the tenant to have the rent below the maxium amounts allowed by Section 8. Find out what the max amount allowed is and always charge that amount.

Thanks a lot for your help. It sounds like I need to contact a local office to find out how to determine the maximum allowable rent. Does the “annual renewal” you speak of apply to the building, or to each individual tenant? Thanks again.

The annual renewal he is speaking about refers to the tenant. The tenant needs to have all their finances reviewed once a year. The property will also need to be inspected once a year by a Section 8 inspector. The tenant will need to bring in their tax returns and have their benefits reviewed, and you will be notified when it is time for an annual inspection. The inspector will come out and then mail you a list of anything that they want fixed. Then when you fix it, they come back out and say “pass”.

It sounds confusing, but there is nothing complex or confusing about using Section 8.