It's estimated that as many as 22.4 million renter households in the United States spend 30% or more of their income on rent. There's a serious crisis in this country when it comes to affordable housing.
This problem is not only affecting tenants but also property managers too. However, there is a solution in the form of a government housing program: Section 8.
But what exactly is Section 8? And how does the HUD determine if the rent you're offering is reasonable? In this guide, we'll answer these questions so you can decide whether or not you want to become a Section 8 landlord in Kansas City.
What Is Section 8?
Section 8 is a federal program that's often referred to as the Housing Choice Voucher Program. Here's how it works: low-income families apply to be on the program.
If accepted, they're placed into houses where a percentage of their rent is subsidized by the government.
Now, Section 8 landlords provide the housing for this program. To qualify, the property needs to be inspected and you need to offer a reasonable rent for the Affordable housing in KC.
What Are the Benefits of Section 8?
One of the biggest benefits of Section 8 for landlords is that you get guaranteed rental payments. Also, people on the program are typically eager to stay on it, so you likely won't have to worry about getting lease renewals.
This can be a major benefit in the sparse Kansas City rental market. You also don't need to worry about marketing costs since there will be a waiting list of people in the program who want to rent from you.
Unfortunately, you do lose some control when you join Section 8. And that starts with how much you can charge for rent.
How Does Section 8 Determine Rent Reasonableness?
The HUD Section 8 rental guidelines into a lot of detail about how they determine rent reasonableness. You'll give them a rent price.
Then, they'll look at a variety of factors to decide if that price is fair. Some of these factors in the rent evaluation process include:
- Size
- Location
- Overall quality
- Age
- Type of unit
- Utilities
- Amenities
In some cases, the HUD will determine that your asking price is too high for the rental unit.
How Can a Property Management Company Help You?
Figuring out a rental price can be challenging on your own. Property management companies can help you perform a detailed rental analysis. That way you get as close to a reasonable price as possible.
What's more, they can also help you apply for Section 8 and manage any tenants you might get for your properties.
Interested in Becoming a Section 8 Kansas City Landlord? Contact PMI STATION
We hope this guide helped you learn more about how Section 8 determines if your rent is reasonable in Kansas City. While Section 8 can be profitable, it's also a lot of work. It requires paperwork and lots of inspections.
If you want to become a Section 8 landlord, but don't want all the work, consider hiring PMI STATION.
We use our decades of experience to help make your life easier whether you want to join the housing program or not. So if you're ready for profitable, passive income, get in touch with us today.
