Millions of Americans receive housing benefits through the government. Many of them are families with children or have at least one disabled family member. Three million households rent residences to people in Section 8.
The Section 8 program is a boon for not only these renters but for their landlords. It ensures that landlords always receive at least part of what they're owed and makes it easier for their tenants to afford rent. However, that assumes the rent is reasonable.
Here's how Section 8 decides if your unit qualifies for their rental assistance programs.
What is Rent Reasonableness for Section 8?
Section 8 is a type of HUD housing assistance that pays part of a qualifying person's rent. The rental unit they wish to apply their vouchers towards must also qualify for the program.
The U.S. Department of Housing and Urban Development determines this by looking at the rent and if it fits the accommodations. A landlord who charges more than their property is worth may not be able to accept Section 8 funds.
First-time landlords can take advantage of this to fill up vacant units, as long as they meet the criteria.
Factors Affecting Affordable Housing Eligibility
Whether or not your rental qualifies for low-income housing programs will depend on various factors. The program needs to make sure landlords aren't taking advantage of housing vouchers to make more profit.
Location
Rent values vary widely between different neighborhoods. It makes sense for units in high-demand areas to cost more to live in. That includes close proximity to public transportation and schools.
Unit Size
The number of bedrooms and bathrooms has a significant impact on rent. Larger units will have higher rent ceilings. Conversely, smaller units are generally more affordable.
Type of Unit
Is your unit a detached single-family home, or is it part of a duplex? The type of unit you rent out determines expected costs. Charging too much for a shared building sends up a red flag for Section 8 applications.
Amenities and Utilities
Amenities such as central air conditioning and on-site laundry facilities make properties more enticing and expensive. As a result, this can cause increased demand and higher rent.
If utilities are included, that is also considered when determining rent reasonableness.
Condition of the Unit
The condition of the unit plays a major role in how much rent a landlord should charge. Recent renovations can justify charging higher rent for tenants. Well-maintained units show that the landlord puts more care into their units.
Property owners who struggle with maintenance can rely on property managers to handle it.
Charge a Reasonable Rent in Akron
Section 8 provides an opportunity for individuals and families to find accommodations despite their limited income. What's important is that they find a rental unit that meets the program's criteria and has a reasonable rent.
PMI Cuyahoga Valley RAL provides property management services for the Akron area and its community. We're part of a nearly 20-year-old franchise that has been making its claim on the industry. Schedule a consultation today to learn more and let us know about your property management needs.
