How does renting to a section 8 voucher work?

How does renting to a section 8 voucher work? Do they fill out normal application first? Looking for first hand experience. Thanks!

Yes they go through the same application process. Once approved there is housing paperwork that has to be completed and submitted to housing before they can move in so they can inspect. Each housing authority may be a little different but should be able to give you specific guidance.

L'n'c Williams do you know how the income works? For example if the voucher pays all their housing do they still need to meet the owners requirement? I don’t want to get into any fair housing squabbles my owner requires 675 credit and no collections plus employed

Laura Renaldo no you should disregard the minimum income requirement for your approval process because the voucher helps to cover the income gap.

Laura Renaldo sect 8 determines how much portion the renter will pay and how much they will cover. As for qualifying standards at my property Sect 8 prospects have to qualify like any other prospect, passing credit and criminal background

Laura Renaldo You shouldn’t require that they make more than 2.5x their portion of the rent. But you may be able to require they make a minimum annual income to show they can pay their estimated portion or just for basic necessities. In TX it is a minimum of $2500 per year.

also, the vouchers do not include any initial security deposits, application fees or any additional amenity or pet fees/deposits. those still fall solely on the renter

L'n'c Williams how much are your rentals, just as an example of how much less than the 2.5 times the rent it can be? only asking since every property and location is different. I'm in a small town in IN, and that would already be 2.5 times my rent, and they wouldnt qualify for HUD at that point even, so just to help clarify for them

When in doubt, always ask your attorney.

Yes everything is the same as any other applicant. The voucher is a source of funds towards the rent. They should have a voucher worksheet from their case worker that can help you determine if their voucher covers the rent. If not, your rents maybe higher than the voucher standard and they cant rent that unit. There should be a voucher packet for you to fill out and send in to their case worker, do that right away.

The same Voucher is the source of income
They still
Must pass the same criteria the rest of the applicants pass
Credit and background if you do one

Thank you everyone, I don't have an attorney so need to know how to do this correctly for my clients.

Section 8 will also come to the property and must pass inspection on the apt and property . We stopped taking section 8 just too many issues

We require Security voucher applicants to meet all the same criteria as other applicants. Our income criteria is 2.5x the amount of the rent. If they have a voucher the applicant's income needs to meet 2.5x their portion of the rent. Since voucher recipients are required 5 by the PHA to pay 30% of their income for rent then they'll always meet the 2.5x

They must have a voucher in hand, otherwise they haven't obtained permission from their housing counselor to move which they must initially have. A choice voucher only guarantees the max rent they are allowed to apply for. You should then have them complete an application to complete a rental and criminal background check. A voucher does not guarantee good rental or credit history, only HUD portion if rent. If your property includes any utilities, this will allow for a higher voucher but they should inquire with their housing counselor first. Most agencies do not give out the worksheets anymore because it just confuses a lot of inexperienced property managers and newbie clients,, and causes more work. I've been on both sides so for me its easy but not for someone without the experience so its good you're asking questions. I'd also suggest you get familiar with the housing counselor and maybe even the payment specialist/accountant so when the interim come in, they'll be less confusion on your ledgers. Good luck!

Tanya Ramos thank you! Are there any parameters that require you to hold the apartment for them or take it off the market? My turnaround for applications is fast 24 hours if I can get rental verification.

Laura Renaldo Definitely get a deposit as with anyone else. We always ask that the landlords be sure and treat all assisted clients the same as unassisted clients. Client is allowed to move in before housing starts to assist but they are 100% responsible for the rent until housing does pick up. Due to COVID-19 restrictions, there may be a hold up with the inspections department which is what starts the process of housing. Because without a passed inspection of the unit, or a self certification from the client and landlord (as we are currently doing), payment cant start. So be sure to find out the process and stay on top of the status of the payment. It all starts once you and the client complete and return the RFTA packet. Going back to the deposit, I strongly suggest that and if they don't have any income or negative credit history be sure and do double deposit if your rental criteria allows it...especially because... if they move in, change their mind, and move out before housing contracts (different then lease contracts) are signed by all parties then you'd have to go after them in court because housing/HUD is not binded to anything and that's most likely where the majority, if not all, rent is going to come from. So you want 1. Voucher in hand. 2. RFTA to complete, 3. Deposit, 4. Signed apartment lease, 5. Passed HUD inspection or HUD self certification, 6. Signed HUD contracts! Lease contract is between landlord and client... that holds financial obligation from client. But the HUD contract is between landlord, client and HUD and holds financial obligation from HUD as long as unit is maintained up yo standards. (Sorry, i think i gave you so much more then asked for ???? thats the landlord liason part of me ????)

I have a question for you all. What is your rent ratio?