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'Section 8' anyone?

1,238 Views | 4 Replies | Last: 22 hrs ago by evestor1
evestor1
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I am thinking of making one of my properties into HUD housing.

The limit on 3 bedroom in my area is 2100 / month. Mine is worth 1700 / month on open market.


Does anyone own HUD housing and do the market rents go up or down from open market in your experience?
CS78
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I've done it in the past with a 4-plex. All the work and pains aside, I wouldn't consider it unless you're numbers were way better than that. They'll do stuff to lose their HUD voucher and then you're stuck constantly trying to collect rent or dealing with the eviction process. No matter how hard I worked at it, I always seemed to have one of the four units not producing. So essentially 25% vacancy rate even though they were rarely empty. Luckily, rent was over 3% of purchase price so I still did ok. But I'll never do it again. Expect way more to go into maintenance than a normal property.
Choward4
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I have them and prefer them. Guaranteed rent, can get increased and while some are as CS says, equal amount stay for 2-5 years and a handful for life. It was great when Covid hit to get that guaranteed rent.
dubi
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AG
Quote:

The limit on 3 bedroom in my area is 2100 / month. Mine is worth 1700 / month on open market.

So the federal govt pays rent over market value?
evestor1
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the way i see it yes.

but not in the "easy money" way. my segment of the market is overvalued in their system b/c i emphasize bedrooms and bathrooms over square footage / etc.
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