Section 8 Residential Appraisal

[DTB]

Around these parts, Section 8 is tenant driven.

The tenant gets a Section 8 voucher, then goes shopping for a residence.

Housing Authority then inspects residence, go-no go.

Tenant leaves, voucher typically goes with tenant. Unless their eligibility is revoked.

Residence does not remain "Section 8 approved". The landlord may or may not have a better understanding of how it works for the future. The units advertised as "Section 8 approved" typically indicates a landlord willing to accept Section 8 tenants and knows the Housing Authority requirements.

FWIW

 

[Wayne Tomlinson]

There is more than one way that the Section 8 program can work. We had an arrangement where if we spent a certain amount of $$ on re-hab then our project could qualify for Section 8 for a 15 year period.

After that our unit was approved subject to annual inspections, after the 15 years the tenants could remain, (one is still with us after more that 15 years more still qualified)

After the 15 years the tenants became the driving force, and then the inspection and everything as Mike said.

I agree that the income approach is the back bone of this evaluation. I would think that first determining an acceptible rate for other rental units, then adjust for the benefit of having almost guaranteed income,with little or no collection prolems.In our case, the management problems were no worse than others. Typically your vacancy factor will be less.

You may not be in the best part or town.

Have fun.

Wayne Tomlinson

 

[DTB]

There is more than one way that the Section 8 program can work. We had an arrangement where if we spent a certain amount of $$ on re-hab then our project could qualify for Section 8 for a 15 year period.

After that our unit was approved subject to annual inspections, after the 15 years the tenants could remain, (one is still with us after more that 15 years more still qualified)




Wayne Tomlinson

Wayne,

I don't get it? What 15 year "guarantee" if you are subject to annual inspections, just like the rest of us?

I can have a mix of Section 8 and market tenants in any proportion that I want, when I want. What was the purported benefit they offered you?

Mike

 

[Wayne Tomlinson]

This was the first Section 8 project in my area. It worked for us to bring in good renters who would not be able to rent otherwise. We had a large number of elderly tenants who were good to work with.

I think the annual inspection is mandatory. Even now, where the tenants situation is in charge, the lease renewals are required to have inspections.

If a new qualified tenant wants to rent, when they become approved the unit still must be approved.

There is not county housing agency here. All contact is with State personnel. Some are good, some are not so good.

We only have 9 rentals in three separate buildings, all adjacent to our office.

Wayne Tomlinson