Forty-one percent of Arkansas households can't afford to pay their bills, and 17% live below the poverty level. Many of these households qualify for Section 8 housing.
How can Section 8 benefit you as a landlord? Housing a Section 8 tenant means consistent rental income and fair market pricing.
To qualify, your property and rental price will be inspected. Keep reading to learn how Section 8 determines if your rent is reasonable in Rogers, Arkansas.
How Often Does Section 8 Check Rent Prices?
Section 8 decides if your rent is reasonable when you are trying to get approved as a Section 8 landlord, but that's not all. In addition to approval, the Public Housing Authority (PHA) will check your rent prices when:
- A tenant wants a lease renewal
- Landlords want to increase the rent price
PHA can also check your rent reasonability whenever they feel like it. Every year, the Fair Market Rent may change.
In a tough rental market, being a Section 8 property can help attract tenants and keep your income flowing.
Reasonable Rent Criteria
Section 8 uses various components of Rogers real estate to determine if your rent is reasonable. They will compare your property to similar ones in Rogers.
A comparable unit is similar in size, type, condition, and amenities, among locations. Utilities and construction dates may also be important criteria.
Section 8 tenants cannot live on your property with housing vouchers if it is determined your rent is unreasonable. Government plans like affordable housing pay most of the rent amount, so the decision is up to them.
Some cheap homes are unfit for tenants. You must take care of your property even if you choose to lower your rent amount to qualify for Section 8 housing.
Become a Section 8 Landlord: The Process
The PHA provides Section 8 tenants with vouchers allowing them to rent for less money. Tenants are responsible for finding a place to live, but the affordable housing program will decide if the rent is reasonable.
If a tenant comes to your rental property, they will alert the PHA. The Public Housing Authority inspects your property to see if it meets their standards.
If you get approved, you are guaranteed about 70% of the monthly rent price. A tenant in the affordable housing program only pays 30% of the rent price, the rest is left to the program.
Because the PHA is responsible for some of the rent amount, they will sign the lease along with you and the Section 8 tenant.
The Role of the Property Manager
Maybe you're interested in becoming a Section 8 landlord but don't want to handle the process. Luckily, a Rogers property manager can help you.
PMI Heritage is a residential property management company specializing in the Northwest Arkansas area. Our professional property managers take on day-to-day operations, including helping out Section 8 tenants.
Setting a reasonable rent price doesn't have to mean losing money. We will run a rental analysis to ensure you receive the maximum monthly income.
PMI's 20+ years of experience benefits landlords like you. Contact us today to learn more about our services.
