WHY SECTION 8
Why invest in Section 8
Low risk: Guaranteed rent, paid by the American government, in direct deposit
Cash Flow: high cash flow potential given the low acquisition cost
Property appreciation: As properties are in distressed markets, we achieve high property appreciation in the short term
Diversification: Because we are present in different markets
Multiple exit strategies: High demand from institutional or retail investors
What is Section 8
The housing voucher program, or Section 8, is a federal funded program that provides free rental assistance to low-income families, paying up to 100% of the rent, and is administrated by the Housing and Urban Development (HUD) since its 1974 and had a $32 billion budget in 2023.
10 BENEFITS OF INVESTING IN SECTION 8
1. Guaranteed rental income by the federal government (paid via direct deposit)
2. Recession proof
3. Above the market rent (10-30% higher)
4. Long-term tenancies (average of 6 years stay)
5. Positive social impact by providing affordable housing and supporting community development
6. Reduce income inequality and foster diversity and inclusion
7. High demand and low vacancy rate
8. Hedge against inflation (yearly adjustments)
9. Enhanced property value
10. Tax benefits and incentives