On The Money

What You Need to Know about Section 8 Real Estate Investments

Couple in a Meeting with a Real Estate Consultant

If you’re looking to invest in real estate, you may have heard already about Section 8 real estate investment. In a nutshell, it’s a program that provides low-income Americans with funded housing. If you talk to many investors, you’ll find differing opinions about this real estate investment. However, Americas Housing Alliance, LLC explains that there are also many great advantages.

1. As a Section 8 Landlord, You Can Enjoy Stable Rent Payments

If you’re looking to have a property that can become a consistent income-generating unit, you can apply to become a Section 8 landlord. Since you’re working with the government, it’s more stable than working with some private tenants. Some landlords find that this kind of setup is more reliable than having to find your tenants and working with them for rent payments. Best of all, the program allows you to increase your rental charge yearly.

2. Tenants Get Incentives to Keep the Property in Good Condition

One of the most disheartening cases landlords experience is when someone trashes their property and doesn’t pay the rent or charges. Section 8 offers tenants some incentives to keep the rental units clean and well-maintained. In fact, it requires the tenant to maintain the property. As the owner, you don’t have to worry about telling your tenants to take care of your unit. Section 8 helps you maintain your investment in good condition.

3. Landlords Enjoy Long-Term Rentals

Ask any landlord, and he or she will tell you that high turnover rates are problematic, not to mention expensive. When a tenant moves, landlords need to ensure that the unit is ready for the next occupant. But the biggest problem is looking for the next renters. Section 8 has a lot of prospective tenants and some stay for longer periods of time compared to some private tenants.

Invest in Section 8 Real Estate

If you’re looking for a stable real estate investment, consider applying for a single home property in the Section 8 program. This way, you can enjoy a stable stream of income from more tenants for longer periods of time.