According to the U.S. Census Bureau, Dayton, Ohio's household poverty rate is 27.1%. For many of these low-income families, finding quality housing is challenging.
Fortunately, local, state, and federal governments have partnered to provide the Section 8 Housing Choice Voucher (HCV) Program. The program helps low-income families live in quality rental dwellings by financing part of their rental payments.
As a Dayton landlord, renting out your property to Section 8 tenants gives you access to benefits like guaranteed on-time payments and stable income. However, you must first meet eligibility requirements, including setting a reasonable rental rate.
Join us here at Bridgestream Property Management as we discuss the reasonable rent criteria of the Section 8 process.
A Quick Overview of Section 8
Section 8 is a subsidized housing program for low-income households funded by the federal government and overseen by local public housing authorities (PHAs). In Dayton, OH, the PHA that provides Section 8 and public housing oversight is the Dayton Housing Authority.
Section 8 tenants (also called "voucher holders") pay only a portion of their income toward rent. The PHA pays the difference directly to the landlord.
Section 8 Factors Determining Rent Reasonableness
As the Dayton Housing Authority explains, affordable housing means a rental (or mortgage) payment doesn't exceed 30% of one's gross income. So, if a tenant's gross monthly income (GMI) is $2,000, they must only pay $600 or less for rent to be affordable.
Therefore, if you charge more than that, for instance, $1,000, it's not affordable to the renter because it's already 50% of their GMI.
Pricing-related rent evaluation guidelines for Section 8 landlords also consider the area's fair market rents (FMRs). FMRs, which the Department of Housing and Urban Development (HUD) establishes, typically consider the following factors:
- Property size
- Location
- Construction date
- Rental type
- Property condition
- Utilities and amenities included
HUD uses the above factors to determine FMRs. So, for your rental fee to be "reasonable" under Section 8, it must be close to that of comparable properties or "comps." Comps are other rentals whose above characteristics are similar to yours.
Dayton Landlord Tips for Section 8 Eligibility
Whether you're renting to regular or Section 8 tenants, the first step to getting your property rented out is conducting an accurate rental valuation. It's a crucial landlord rental strategy that allows you to determine the FMRs in the area where your property is. You can then use your assessment findings to set a rental fee that meets HUD's Section 8 affordability guidelines.
Also, please remember that Section 8 properties must meet stringent health, safety, and habitability regulations. So, to increase your chances of qualifying for the program, please ensure you keep your Dayton rental property well-maintained.
Want to Rent Out to Section 8 Tenants?
As a Section 8 landlord, you can enjoy the benefits of income stability and getting paid on time. However, you must ensure your rent is reasonable, per HUD guidelines.
Bridgestream Property Management can help with your goal of becoming a Section 8 landlord in Dayton, OH. As a full-service property management company, we'll help ensure your rental fee is within the FMR threshold by accurately valuing your property. We'll also screen and manage your tenants and oversee your property's upkeep and legal compliance.
Speak with us today for your free rental analysis and discover why our firm has earned hundreds of 5-star Google reviews.
