Section 8 housing is a government initiative to help alleviate the plight of homeless people across the nation. The White House has allocated $32.8 billion toward this program for 2024.
If you're a Fort Collins landlord who is weary of the endless search for tenants, it might be worthwhile looking into this option for your rental property. You'd be helping alleviate a major crisis, and you'd be assured of guaranteed income for your property.
The Section 8 program isn't for everyone, as it has strict criteria for rent prices and housing requirements. Keep reading to explore more about Section 8 housing and whether your expected rental matches these expectations.
What Is Section 8 Housing?
Needy families who meet the minimum income requirements can apply for housing under the Federal Section 8 housing program. If they qualify, they receive housing vouchers to help them pay a portion of their rent.
These renters must earn less than 80% of the median income for the area to gain access to Section 8 housing. They must apply for assistance via the City of Fort Collins Housing Authority.
The city goes through all the applications and tries to match prospective tenants with homes that suit their range of affordability. Under the Section 8 housing program, tenants must pay 30% of the rent. The program pays the balance.
Benefits of Being a Section 8 Landlord
The obvious benefit of providing Section 8 housing is that you'll receive 70% of your monthly rent courtesy of the Colorado State government. This can alleviate a lot of stress for landlords who struggle with rent collections.
If your Section 8 tenants don't pay their portion of the rent, they will lose their benefits. Other criteria for the program include behaving like good tenants.
This assures landlords that these renters will take care of their rental units. Section 8 renters are also very likely to renew their leases, ensuring an ongoing income for your rental unit.
Criteria to Qualify as a Section 8 Landlord
Section 8 landlords must maintain their properties in line with prevailing housing laws. You must agree to official home inspections and charge a reasonable rent.
When calculating rent for your home, you should start with around 1% of the value of your rental property before taking other factors into account.
A rental analysis will help you calculate a fair rent for your area. These calculations compare the rent rates of similar properties in your area. Criteria for comparison include the home's size, age, and condition.
If you apply to become a Section 8 landlord, the city of Fort Collins determines whether your rent is fair based on their research into rental rates for each area of the city.
Maximizing Your Fort Collins Properties
Section 8 housing is a win-win scenario for both landlords and tenants. It helps provide low-earners with acceptable housing and ensures landlords have good tenants in their property.
Guaranteed rental income doesn't relieve landlords of all the other tasks associated with owning an investment property. Only a property management service can help you with that.
PMI Northern Colorado is the top choice for Fort Collins landlords who don't want to navigate the complexities of tenant rights, rental maintenance, and more.
Discover an easy way to make the most of your Fort Collins investment properties, or browse our blog for more landlord advice.
