Landlord's Guide to Section 8

How Does the Section 8 program work?
How do I list my unit with Section 8?
Does the housing agency screen Section 8 tenants?
Security deposit?
Do I sign a lease with the tenant?
What kind of inspection is done?
How much rent can I charge?
How do I get paid?
May I evict a Section 8 tenant?
Utility Allowances

How Does the Section 8 program work?

Note: Section 8 and Housing Choice Voucher Program are two different names for the same program.

Section 8 is a federal assistance program to help low-income people pay their rent. People with Section 8 vouchers find their own housing and pay a percentage of their income for rent. Section 8 pays the landlord the rest of the rent.

These are the steps involved in renting to a Section 8 tenant:

A family with a current Section 8 voucher views your unit and wants to rent it.
You screen the tenants to make sure they are suitable.
You agree to lease to the tenants and contact the Section 8 office for approval.
The Section 8 office checks to make sure the family can afford the rent, the rent is reasonable compared to other rents in the community, and the lease is acceptable.
The Section 8 office sends an inspector to check your unit to make sure it meets program standards.
After the unit passes inspection, the Section 8 office sends you a contract to sign.
You sign the contract with Section 8 and sign the lease with your tenants, and the family moves in.
The family pays its portion of the rent and Section 8 pays the rest.

Section 8 Form descriptions:

The Housing Choice Voucher authorizes a family to look for a rental and specifies the size of the unit subsidy
The Request for Tenancy Approval is submitted to the Section 8 office after the landlord agrees to rent to the tenant
The Inspection Form is used to determine if the unit meets the Section 8 standards
The Tenancy Addendum must be attached to the lease
The Housing Assistance Payments (HAP) contract is the contract between the landlord and the Section 8 office

How do I list my unit with Section 8?

If you would like to rent to Section 8 tenants, you should contact your local public housing agency to let them know you have an unit available. They will add your unit to their listings. This is a free service.
You may use the HUD Public Housing Agency listing to find your local housing agency address and telephone number.
You may also advertise on your own. If you place an ad, include a notice stating that you welcome Section 8 tenants.

Does the housing agency screen Section 8 tenants?

The housing agency does not screen Section 8 tenants for you. You must do this yourself, just as you would screen non-Section 8 tenants. You should ask for Social Security number, references, current and previous landlords, credit history, employment history, criminal record, etc., and check the information carefully.
There are many services available to help you screen tenants. These services can check to see if the prospective tenant has a criminal record, has been evicted, or has bad credit. When checking references, always contact the previous landlord as well as the current landlord, because the current landlord may want the tenants to move out.
The housing agency will tell you the number of people on the voucher, current and previous address, and current and previous landlord. Some housing agencies will also share any other information they have. However, the housing agency's main concern is checking that the applicant meets the income limits and other Section 8 eligibility requirements. Screening the tenant is the landlord's responsibility.

Security deposit?

The amount of security deposit a landlord can collect from the tenant is determined by the landlord. The security deposit for assisted tenants may not exceed security deposits for non-assisted tenants, or what is common practice in the private rental market. The security deposit is paid by the tenant and is 100% refundable unless there are itemized charges for unpaid rent, damages and/or cleaning beyond normal wear and tear./p>

The maximum security deposit you may collect is up to two month's rent.

A reasonable pet deposit or fee may be collected in addition to the security deposit. The pet fee need not be refundable.

Do I sign a lease with the tenant?

The lease should include:

names of the landlord and tenant
address of the rental unit
term of the lease and how it will be renewed
monthly rent amount
which utilities are paid by the tenant
which appliances must be provided by the tenant
You must include the Tenancy Addendum

You may include any other conditions that you normally include in your leases, as long as they do not violate any laws.

What kind of inspection is done?

Your unit will be inspected to make sure that it meets the housing standards of the Section 8 program. The inspector will examine the exterior of the building, the plumbing and heating systems, the exits and hallways, and each room in the unit to make sure the unit is safe, clean, and in good condition. The unit must be vacant at the time of the first inspection, and all utilities must be turned on. The inspector must have access to the unit itself, the basement, and all common areas.

The inspector uses a checklist form provided by HUD, the federal agency in charge of the Section 8 program. For each item on the list, the inspector marks if the unit passes or fails (or not sure). If repairs are needed, the inspector marks this on the form. A list of Frequent Fail Items is available.

A family will not be allowed to rent your unit until you have made any needed repairs and the unit passes the inspection.

The unit will be re-inspected each year. If problems are found, you must make repairs within the time allotted or else Section 8 will stop payments.

How much rent can I charge?

The rent you charge must be reasonable compared to other units of similar size in your community. The Section 8 office will compare your rent to their payment standards, which are based in part on the fair market rents in your city or town. The fair market rents are the average gross rents (rent plus utilities) being paid in your community for modest units of varying sizes.

If the gross rent (rent plus utilities) for your unit is less than or equal to the payment standard, the tenants pay 30% of their monthly income for rent and Section 8 pays the rest. If the rent is higher, the tenants must make up the difference. However, they are not allowed to pay more than 40% of their income for rent when they first rent an unit.

If you want to increase the rent, you must provide 60 days notice to both the tenant and the Section 8 department. The landlord cannot raise the rent during the first year of the contract. The rent must remain reasonable and within the family's ability to pay, or else Section 8 will not approve it.

How do I get paid?

Section 8 will make payments using Direct Deposit for their portion of the rent each month. They will continue to do so as long as the tenant remains eligible for Section 8 and your unit meets the Section 8 program standards.

You are responsible for collecting the tenant portion of the rent each month.

May I evict a Section 8 tenant?

You may evict a Section 8 tenant in the same way you would evict a non-Section 8 tenant. The same laws apply. Please provide copies of all notices to the Section 8 Department.

Utility Allowances

Utility allowances can be found on the Utility Allowance Page.

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