Approximately 4.8 million Americans receive housing assistance from the federal government. This is through a program known as "Section 8" which allows participants to choose where they want to live and use vouchers to pay for it.
It also requires landlords participating in the program to meet certain standards as well. A main one is that they offer "reasonable rent."
This article explains the qualifying Section 8 eligibility criteria for landlords, including what constitutes reasonable rent. Keep reading to find out how this calculation is made and how it applies to your Boca Raton property.
What Is Section 8?
Section 8 refers to a part of the Housing and Urban Development Act of 1970, which was passed by Congress. The term is used more generically now to refer to the federal Housing Choice Voucher Program the Act created.
It is run by the Department of Housing and Urban Development (HUD). It provides rental assistance to low-income individuals and their families. The majority of recipients work and are either seniors, children, or people with disabilities.
The process involves a voucher allocation that helps pay for a part of their rent. How much is based on household income, but it is usually around 70 percent.
Unlike traditional public housing, Section 8 allows participants to choose their own housing. They can pick apartments, townhouses, or single-family homes, as long as the landlord agrees to participate in the program.
One of the main advantages of Section 8 for landlords is they are guaranteed the voucher rent payment every month. The flip side is they have to meet certain standards to participate in the program.
Section 8 Landlord Requirements
One of the main criteria for landlords who wish to participate in Section 8 is that the property must meet housing quality standards. During the Section 8 application process, someone from a local Public Housing Authority (PHA) will inspect the property. The goal is to ensure it's a safe, decent, and sanitary place to live.
Next, a landlord must enter into a lease agreement with the tenant that meets state and local landlord-tenant laws. This includes complying with all fair housing laws and regulations, which prohibit discrimination. A final criterion is the rent amount must be considered reasonable.
How Is Reasonable Rent Calculated?
There are several steps to calculating "reasonable rent" for Section 8. First, every year HUD determines "fair market rents" for different areas of the country. In general, this means the rent level must be less than 40 percent of similar rentals in the city or county, not including utilities.
This relies on an analysis conducted by the local PHA that reviews local listings and market data, and conducts landlord surveys. The review takes into account unit size and type. Also, landlords and PHAs can negotiate the rent amount based on factors like the condition of the unit or recent improvements.
Learn More About Section 8 Housing Standards
Now that you understand the Section 8 standards for "reasonable rent," you can decide if the program is right for your Boca Raton property. A reputable management company can further advise you on the steps to take to qualify as a Section 8 renter.
PMI Beach Properties is a full-service property management company serving Palm Beach County. We offer a variety of residential rental services, including tenant and lease management. Reach out to us today to learn more.
