Wikipedia:
Under the tenant-based program, eligible families with a certificate or voucher find and rent a unit in the private sector and pay a portion of the rent (based on income, usually around 30 percent). The local housing authority sends the landlord the remaining rent, subject to a limit called Fair Market Rent (FMR) determined by HUD. The landlord cannot charge a Section 8 tenant more than FMR, even if the landlord does for non-Section 8 tenants in similar units.
Section 8 is one of those mystery programs that many homeowners are unclear about. There are pros and cons to section 8, but first the landlord must understand that it is not mandatory to accept section 8 applications.
Who is Section 8?
1. It has been used in the past to open houses that the courts have found discriminatory. Hills v. Gautreaux, a ruling of the United States Supreme Court.
In this case, several Chicago families living in housing projects received Section 8 vouchers that allowed them to move to the suburbs in compensation for the poor condition of the housing project.
2. When public housing residents must be relocated due to the rehabilitation or demolition of public housing units
3. Housing assistance for a low-income individual or family.
Eligibility:
1. Get to know the government. income guidelines
2. Pass a criminal background check
3. Have at least one family member who is a US citizen OR has eligible immigration status
Advantage:
* Owners get rental guarantee
* Annual inspections of the unit
* Fair market rental rates
* Strict renter responsibilities defined in the lease addendum
* Punctual payments
* Tenants can be removed from the program for damage to the unit or failure to pay rent.
* The tenant waiting list provides the landlord with a number of eligible tenants
Disadvantages:
* Two contracts: your standard lease and a government contract with HUD.
* The government is another part of the relationship between the tenant and the owner
* Rules may be different: California Civil Code law states in relevant part the following: When a landlord terminates or does not renew a contract or agreement registered with a government agency that establishes rental limitations for a qualified tenant, the tenant or tenants who were The beneficiaries of the contract or registered agreement will receive a written notice at least 90 days in advance of the effective date of the termination and will not be obliged to pay more than the part of the rent that corresponds to the tenant.
* Annual government inspections of the unit by government inspectors to ensure quality housing
* Fair market rent is the limit the government imposes on what you will pay for your rental unit; you may feel like you can get more for the drive
Howard Bell for yourpropertypath.com