In this article:
- How does Section 8 work?
- Where does Section 8 funding come from?
- How do you get a house approved for Section 8?
- How do you screen Section 8 tenants?
- How do you rent to Section 8 tenants?
- What are the benefits of being a Section 8 landlord?
- Can you evict a Section 8 tenant?
- How do you evict a Section 8 tenant?
The Housing Choice Voucher program, commonly known as Section 8 because it is part of the larger Section 8 program, is a federal housing assistance program that subsidizes a tenant’s rent payment in order to help low-income renters access safe, decent and sanitary housing.
Becoming a Section 8 landlord can open up a new group of renters to you. If you’re thinking about becoming a Section 8 landlord, here are the steps to get started and a few pros and cons to consider.
Please note that local laws may prohibit discrimination based on how tenants pay their rent, including whether they use a Section 8 voucher. For more information, please consult with an attorney who is familiar with the laws in your area.
How does Section 8 work?
The U.S. Department of Housing and Urban Development (HUD) provides funds to local public housing agencies, or PHAs, who in turn issue vouchers to qualifying renters. Once a Section 8-qualified renter signs a lease at an approved residence, the PHA pays a portion or the entirety of the rent directly to the landlord or property manager, effectively subsidizing the rental cost for the tenant.
Which renters are eligible for vouchers?
Housing Choice Vouchers are available to low-income individuals and families who are U.S. citizens or in a specified category of noncitizens who have eligible immigration status. The local PHA determines eligibility based on the renter’s total annual gross income and family size. Generally speaking, the family’s income may not exceed 50% of the median income (adjusted for family size) for the area where they reside.
What portion of a renter’s monthly payment does a Section 8 voucher cover?
Vouchers are typically worth the difference between 30% of a household’s income and the rent price, up to either the published fair market rent ceiling or the comparable unassisted rent determined by the PHA (whichever is less). HUD recalculates fair market rents for state and local areas each year, taking into consideration local rental market conditions.
Where does Section 8 funding come from?
Named for Section 8 of the U.S. Housing Act of 1937, the law allocates taxpayer funding to help states address the shortage of decent and safe affordable housing for low-income families. The program assists not only low-income families but low-income elderly and disabled tenants as well.
How do you get a house approved for Section 8?
To begin receiving Section 8 tenants, start by contacting your local PHA to inquire about Section 8 housing landlord requirements. Each state has its own housing authority office, and many cities and counties also have their own PHAs. Local city or county PHAs typically issue and administer Housing Choice Vouchers, although some state PHAs do as well. After getting your initial questions answered, you can follow these general steps:
1. Fill out a Section 8 landlord application
To begin the Section 8 landlord qualification process, contact your local PHA for the paperwork. They should be able to guide you through the application process.
What you need to apply:
- Your personal identification
- Your property location
- The asking rent of your property
2. Complete a property inspection
Once your application is approved, the housing authority will set up an inspection to visit your property and make sure it meets housing quality standards. Inspectors will check for things like:
- Sanitary facilities
- Smoke detectors
- Working plumbing
- Sound structure
- Locks on each window and door
Some inspectors will also look at the home’s heating or cooling system. Requirements vary depending on your area, so inquire with your local PHA prior to inspection to make sure your property will meet the criteria.
When determining if your home meets health and safety standards, the inspector will pass, fail or mark inconclusive for each item on the requirements list. An inconclusive result generally means they need more information from the property owner.
3. Begin accepting vouchers
When you notify the PHA of a vacancy, it will refer income-qualified applicants to you from its Housing Choice Voucher waiting list for review under your admission standards.
How do you screen Section 8 tenants?
Under the Section 8 rules, owners may screen tenants for factors such as payment of rent; care for the rental unit and premises; respect for other tenants’ rights to the peaceful enjoyment of their premises; and drug-related criminal activity or other criminal activity that is a threat to the health, safety or property of others. Regardless of who you are screening as a Section 8 landlord, you must never engage in any discriminatory conduct, and you must treat all housing applicants equally.
How do you rent to Section 8 tenants?
Once you’ve been approved and put a screening process in place to find a great renter, you’re ready to begin accepting Section 8 tenants. After selecting a Section 8 renter, there are several forms you must submit to the housing authority in order to complete the arrangement, including:
- Landlord Information form, which describes the property owner and rental unit
- Housing Assistance Payments Contract form
- A copy of your standard lease agreement if you have one — if you don’t have one, then the form of lease you wish to use, which could be a PHA-model lease
- The HUD form’s Lease Addendum to attach to the lease form
- Request for Tenancy Approval form
- W-9 form including renter’s information
Aside from these documents, local PHAs may have additional requirements, including home inspection forms or documentation relating to utility payments.
What are the benefits of being a Section 8 landlord?
While the Section 8 program isn’t a great fit for every landlord, there are some key advantages that might make you consider joining and renting to Section 8 tenants. Here are the top four benefits of being a Section 8 landlord.
1. Reliable monthly payments
Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. According to the Zillow Group Report, only 52% of renters say they would be able to cover an unexpected expense of $1,000 if they had to. With the Section 8 program, you can be virtually assured you will receive the PHA’s portion of the rent on time (subject to congressional appropriations). And, since Section 8 tenants can lose their housing voucher if they don’t adhere to the terms of their lease, they may be more inclined to pay their portion on time as well.
2. Pre-screened applicants
While you’ll still want to exercise your right to screen Section 8 tenants, housing authorities will also screen tenants when qualifying them for vouchers. They’ll review a tenant’s income level and may uncover issues like criminal history. This pre-screening process requires local PHAs to provide landlords with:
- The type of screening they conducted on the tenant
- The tenant’s current and previous addresses (as shown in the PHA records)
- The names and addresses of the tenant’s current and previous landlords, if known
3. Wider pool of applicants
The Section 8 program is extremely popular, especially in urban areas where housing costs are high. Over half (53%) of renters in urban areas said they can’t afford a home in their preferred neighborhood, compared to 45% of suburban renters and 32% of rural renters.
No matter where your rental property is, accepting Section 8 tenants can open the door to a larger group of renters in your area, which can ultimately allow you to fill your vacancy more quickly.
4. Increased visibility
The HUD has a website that prospective tenants can use to find qualifying low-income housing. As a Section 8 landlord, you can advertise your rental property on the site. Your local PHA might also run a rental listing website you can use.
Can you evict a Section 8 tenant?
You may evict a Section 8 voucher holder for good cause, which generally includes a serious or repeated violation of the lease agreement. After the initial term, you may generally evict a voucher tenant for other good cause, such as a tenant’s failure to accept a new lease or lease revision, or a desire to lease the unit for a higher rent. You are under no obligation to make exceptions to established rules for voucher holders (unless those rules allow for termination of the lease without good cause).
How do you evict a Section 8 tenant?
It is important to follow proper protocol when evicting a tenant. An eviction must be in accordance with local law and any additional requirements of the PHA; generally:
- You must give the tenant written notice of the grounds for eviction before or upon commencement of the eviction action.
- You must give the tenant an eviction notice, such as a notice to vacate, under local law.
- Eviction must be by court action.
Have more questions about being a landlord? Get helpful tips and articles on our Rentals Resource Center.
Note:This article is provided for informational purposes only. Zillow, Inc. does not guarantee that the information in this guide is adequate or that it is compliant with current, applicable laws. This guide is not a substitute for the advice or services of an attorney. You should not rely on it for any purpose without consulting a licensed attorney in your jurisdiction.
