The Section 8 housing choice voucher program can make all of the difference in the world for those who are struggling to keep up with rent payments. This program helps 4.8 million households in the United States receive vouchers for housing.
If you are interested in owning this type of property, you will have strict regulations as to how much rent you can charge to people in Section 8 housing.
What do you need to know about Section 8 rent as a real estate investor? This guide breaks it down.
Size of the Family
One factor that goes into how much rent you can charge is how many people are going to be living in one rental unit. The reason why this comes into play is that with Section 8 housing, you have to fall below a certain income threshold to qualify.
However, that income threshold varies depending on how many people are living in your household. Let's say that the Pleasanton area allowed people that only made about 50% of the area's median income to qualify for this program.
If only one person is living in the household, then the household income cannot be above $31,050. However, for four people in a household, the income limit rises to $44,350. If someone has eight people in their household, the income limit goes all the way up to $58,550.
The bottom line is that the local government gives more leeway to people depending on how big the family is. Take that into consideration for the people in your Section 8 housing before finalizing the rent.
Bedroom Size
Along with the size of the family, you have to consider the bedroom size that you are offering with your rental units. Because people tend to pay more to have more bedrooms, the maximum rent is going to vary depending on how many bedrooms you are offering in your units.
Alameda County has specific numbers that people participating in the Section 8 housing program have to meet.
Let's start with a studio apartment. For that bedroom size, the maximum rent someone can charge in this area is $1,295 per month. For a four-bedroom apartment, this number practically doubles to $2,145 per month.
Keep the size of your rental units in mind before making plans around the rent.
Location
Finally, the location comes into play because it can impact what the true cost of living is. Alameda County tends to not only be one of the more expensive areas in California but also in the United States. As a result, the Section 8 program may provide a little more leeway for people looking to qualify for the program from this area.
Invest in Section 8
These are the main factors that you need to consider if you are going to charge rent for Section 8 housing. You need to consider what the income level for a family is and if they meet the qualifications for this program. Then, you need to think about the bedroom size of the rental units you are offering as well as the location of these rental units.
Do you want to know more about Section 8? Message us here with your questions.
