Property Management Blog

Benefits of Section 8 Rental Property Investing

Benefits of Section 8 Rental Property Investing

There are many ways to generate money in real estate as an investor.

Section 8 rental property investing is one that poses many positive benefits to investors, whether you are just getting started as a real estate investor or you’re an established one.

What follows is some of the benefits you gain by becoming a Section 8 rental property investing professional.

Before we get to that though, let’s quickly answer the question of what Section 8 housing is.

Section 8 is a program funded by the US Department of Housing and Urban Development that provides Housing Choice Vouchers also known as Section 8 to private landlords. You can rent apartments and homes at fair market rates to qualify low income tenants and gain rental subsidies delivered by Home Forward.

You can learn more here

Benefits of Section 8 Rental Property Investing

Longer Rental Commitment

Section 8 tenants tend to make longer-term rental commitments than higher income tenants. In other words, lower income tenants tend to live in rental properties much longer than higher income tenants.

This means long-term stable rental income for you as a landlord. Once they find a place to stay these renters usually stay for a longer period of time, which is what property owners crave – less turnover and lower vacancy rates.

Fair Market Rent Rates

Most people assume naturally that since you’re working with low income properties and government funded programs that you are going to make a low income. However, that’s not necessarily true. In fact, a benefit of section 8 rentals is that you can actually charge market rates for your units. The rent is subsidized by Home Forward.

Free Advertising & Exposure

As you should know, your ability to promote your rental properties is critical in landing good tenants. As a section 8 landlord you will benefit from having free advertising and exposure with in the internal sources on this government-backed program.

Section 8 will post available units on their website, which is visited by local potential tenants, and they will also post it on other internal sources also.

Broad Range of Property Types

As you see in the definition mentioned above this program works for renting out houses. The big benefit to renting out apartment units as opposed to houses is that you enjoy economies of scale when you own an apartment building.

Instead of having one paycheck coming from the entire property, you may have five team 20 or more coming from just one property. Instead of having ten different lawns spread out all over town that need to be cut, you can cut just one lawn for your entire apartment complex.

Dependable Income

The number one benefit of working with section 8 tenants this effort the government is the benefactor of your tenants. Government checks don’t bounce and you can pretty much guarantee that they’re going to come every month like clockwork.

As a landlord you know that the entire business rises and falls on collecting that read that comes around once every month. That check doesn’t come through, you’re in a world of hurt. That’s why landlords love the section 8 program.

These are some of the main pros for choosing to focus on section 8 tenants.

If you’d like to learn more and talk about how you can get started with Section 8 rental property investing then you should set up a free consultation with the Utz Property Management team.

If you would like to speak with the best property management experts in Westminster, Maryland about other benefits of rental property investing, schedule a PROPERTY PROFITS STRATEGY SESSION.

This Session is valued at $300 but if you’re one of the next 8 to schedule in the next 30 days, you can get it at zero cost!

Simply click here to learn more and schedule a 1 hour available slot on our Calendly page.