Section 8 housing, also known as the Housing Choice Voucher Program, is a federal housing initiative that helps low-income earners keep a roof over their families' heads. The program is backed by billions of dollars in federal funding and offers a wide range of assistance to millions of families across the nation.
The program includes government-owned housing as well as rent contributions for those staying in privately owned rental units.
Jacksonville landlords don't need to charge a lower rent to qualify as a housing provider, but you must act within Section 8 guidelines when renting to these tenants. Read on to discover how the Section 8 program determines if your rent is reasonable.
Why Become a Section 8 Landlord?
Section 8 landlords enjoy several benefits that can alleviate some of the stresses of owning a Jacksonville investment property. When you sign up as a landlord under this program, the HUD pays 70% of the rent on behalf of the tenant.
This means you enjoy guaranteed income for the duration of the lease agreement. These tenants are also highly likely to renew their leases due to the ongoing shortage of affordable housing.
Under Section 8 housing policies, tenants must maintain their accommodation in good condition. If they don't, they will lose their right to benefit from the program.
The HUD does not screen tenants; they approve them based on their income and affordability levels alone. You should still screen these tenants in line with the Fair Housing Act regulations.
Section 8: Reasonable Jacksonville Rental Rates
The HUD determines whether your rent is reasonable based on fair market rent calculations for your area. They consider fair rent to be equal to the 40th percentile of gross rents for your city or county.
This means you must charge rent that is in line with 40% of the housing units in the area.
The HUD bases its calculations on a sample of at least 100 homes. These dwellings have one, two, and three bedrooms and must have been built more than two years ago.
Under the Section 8 program, tenants receive housing vouchers to the value of between 90% and 110% of the FMR calculation. This percentage depends on the 'payment standard' calculated according to average earnings in the area.
You can look up the payment standards for your neighborhood on your local housing authority's website. The landlord receives vouchers to the value of the payment standard, and the tenant pays the rest.
How to Participate in Rental Assistance Programs
Landlords who wish to join local affordable housing programs must apply with their local housing authority. You will need to fill out some paperwork and agree to an initial housing inspection.
Once the housing inspector has approved your rental unit, you should start to receive rental applications from qualifying Section 8 tenants.
Reap the Rewards of Affordable Housing in Jacksonville
Round Table Realty Property Management has over 40 years of combined experience in real estate. Our expert team can help you master the complexities of becoming a Section 8 landlord, thanks to our comprehensive range of services.
We can guide you through the paperwork, tenant screening process, and inspections and assist with a rental analysis to help you determine reasonable rents.
Explore your Section 8 housing options and get started on the road to earning a consistent rental income.
