Find Section 8 Housing

Section 8 Housing, which includes the Housing Choice Voucher Program, is a federal government program that helps low-income families, people with disabilities, and the elderly rent safe, decent, and affordable housing. Through the program, the U.S. Department of Housing and Urban Development (HUD) provides financial subsidies to landlords so that they can maintain a percentage of their housing at a lower rent for program beneficiaries.

Under the general Section 8 Housing Program are a number of sub-programs that determine the manner in which financing is handled for a project and the eligibility of tenants. As a tenant looking to move into a particular housing program, these are the things to consider:

• Eligibility. First and foremost when looking into a housing program, you should consider your eligibility. Different housing programs receive different forms of financing which may limit the type of tenants they are able to admit. Some are targeted towards people with disabilities, others towards elderly persons, and others towards low income families. To qualify under the disabilities clause, you or someone in your family must be handicapped or physically disabled. To qualify as an elderly person, you or someone in your family must be over the age of 62. And to qualify as low income, you and your family must generally make below 50% of the median income for a given area. Nonetheless, specific eligibility requirements may vary from region to region, so it’s best to check with your local Public Housing Authority (PHA) to determine your eligibility for a particular program.
• Location. Prior to moving to a particular housing program, you should review the location: is it rural or urban? Are there job opportunities nearby? Can you get around without a car? Is the area safe? These are pertinent questions to ask in assessing a location and your response may change depending on your situation. Under the Section 8 Housing Voucher Choice Program, you may select housing anywhere in the United States, as long as you lived in the jurisdiction of the PHA issuing the voucher when you applied for assistance.
• Property. Lastly, when selecting a new housing option, review the property. How did it score on its HUD inspection? This is an annual inspection conducted by either the local PHA or by HUD representatives to assess the condition of a property. A property starts with a score of 100 and is deducted points for any unsafe, neglected, or broken elements of the structure. A higher score denotes a better building. Additionally, when reviewing the property, consider the rent requested. As a Section 8 tenant, you are still responsible for a portion of the rent (determent on your financial situation and program), so make sure that you are able to stay within that financial limit. If the rent of a building is below the rental assistance amount you expect to receive, you can sometimes keep the leftover amount so take that into consideration, as well.
  

Applying for Section 8 Housing

The process of applying to Section 8 Housing can be quiet long and tedious at times. The first step is always to get in touch with your local Public Housing Authority to determine your eligibility. From there you will need to complete an application outlining your current financial situation. The more information you can put on paper, the better, since those in dire financial situations may sometimes receive priority over others.

Once you have completed your application, you will need to submit it at the local PHA to join the waitlist of people waiting for Section 8 Housing. These lists vary by area, but the wait can sometimes be as long as several years. Getting on this waitlist can be additionally challenging given that they may only be open during specific times of the year. Check periodically with the local PHA and always inquire as to exact dates and additional opportunities for eligibility.

When you’ve passed the waitlist and are approved for Section 8 Housing, if you are under the Section 8 tenant-based program, you can pursue your applications for housing just as you traditionally would. Landlords cannot legally turn you away solely due to your Section 8 status. Applications are then submitted to landlords who can verify information with the PHA at which you are registered. In order to maintain program assistance, you must maintain eligibility per local guidelines.

Investors

For those looking to invest in Section 8 Housing, the elements to consider are most often the program type under which the property is covered, the financing for the property, and the state of the property.

• Program Type. In addition to eligibility, the program type can inform investors of the possible financing scheme behind a particular property. Under Section 8, there are several prominent financing options: rental assistance subsidy, capital advances, and below market rate loans. The rental assistance subsidy program covers between 70% and 100% of a unit’s fair market rental (FMR) price and is paid to the landlord monthly by the local PHA or HUD. A capital advance is a loan granted to a property for the purposes of new construction or substantial rehabilitation and does not need to be repaid as long as the property remains in service of Section 8 tenants per the loan contract terms for a duration of 40 years. Below market rate loans are granted to both non-profit and for-profit landlords and contractors and carry interest rates between 0% and 4%.
• Financing. The terms surrounding the property loan, including who administers and services the loan contract, the act under which the loan was granted, and the financing behind it can greatly affect a property’s flexibility. Loan contracts are either serviced by the local PHA or HUD; the geographical proximity of the administrator to the property can be of great aid when looking to make change to the loan terms. The act under which a loan was granted can either limit or enhance the flexibility of use for the funds. And better understanding the structuring of the loan, including the protection and repayment options, can assist in better understanding how much of a loan has been repaid, the expected interest rate associated with the loan, and the breakdown of payments being made.
• Property. Section 8 financial assistance is largely dependent on the state of the property. If you are not able to maintain the property at a certain minimum condition, the contract administrator may halt funding. Therefore, it is important to evaluate the need for rehabilitation of a particular site when investing in a Section 8 property. The HUD inspection score can definitely aid in better understanding the holistic state of a property. Properties are inspected annually; scores are given out of a total of 100; and lower scores denote poorly maintained properties.
  

Inspection Score

Section 8 landlords are required to maintain a certain level of quality for the property – the building needs to be safe for residents and their families. To maintain this level of quality, the contract administrator for a particular property will inspect the building on an annual basis. For a full list unit elements inspected, please consult HUD’s official checklist. During the inspection, the inspector reviews four main components of the building:

1. Interior Rooms. This includes all living rooms, bathrooms, bedrooms, and the kitchen. The inspector looks for identifiable hazards, such as uncovered sockets and light switches, the absence of lead paint in the unit, proper window reinforcements, and additional items.
2. Building Exterior. As part of the inspection, the inspector reviews the building exterior, focusing on the foundation, the roof and gutters, and the chimney, among other items.
3. Heating & Plumbing. The building needs to provide adequate heating for the unit and the heating unit needs to be safely installed. Additionally, sewage for the apartment needs to be properly maintained without any backups or other issues.
4. General Health & Safety. Lastly, the inspector also reviews the general safety of the building and unit. Are there acceptable and accessible exits from the unit (for emergency situations)? Is there clear and easy access to the unit? Is there evidence of an infestation? Does the immediate neighborhood and entry to the building safe?
   

Fair Market Rent

The fair market rent (FMR) of a given unit is determined by the local PHA or HUD and determines the amount the landlord should expect to receive for a unit and the amount a tenant can expect to pay. In determining this rent amount, the contract administrator looks at the neighborhood surrounding the unit and determines from that the fair market rate. The rent to FMR ratio is determined by diving the rent gross amount by the FMR gross amount can be a good indicator of whether the property rents at a fair price or not.