The Housing Voucher Program guarantees free housing for low-income families and guaranteed income for landlords
Housing Voucher Program (Section 8) Stats
WHY INVEST IN SECTION 8
Section 8 SFR is one of the best performing real estate asset classes, with lower acquisition cost and 20% higher rental

1. Guaranteed rental by the government
Government pays rent directly, ensuring reliable cash flow
2. Recession proof
Stable demand and payment even in downturns
3. Higher returns
Government pays up to 120% Fair Market Rent, giving it at least 20% better returns than market rentals
4. Average tenancy above 6 years
Voucher families stay 6+ years, reducing turnover costs
5. Yearly inflation-adjusted rents
Rents adjust annually with HUD Fair Market Rents, being a good hedge against inflation
6. Supply of properties below replacement value
Fragmented market creates undervalued buying opportunity
7. Low competition
Institutional investors avoided the market until now due to extra inspections and bureaucracy. That changed the last 2 years.
How much of the rent is paid by the Government
0% to 30%
Tenant Pays
70% To
Government Pays
Tenant can’t pay more than 30% of its income in rent. If extreme low income payment will be $0
Rent is paid directly from the government to our account, not passing through the tenant
Rents can go up to 120% of HUD’s Fair Market Rent (FMR), making it a superior cash flow asset class.
FAQ About Section 8
Section 8 tenants are just normal tenants with low-income. We perform a thorough background check, criminal record, eviction record and credit check on each tenant, and a quarterly inspection. They lose the voucher if not compliant.
Every year we can request rent increase based on inflation and based on the fair market rent. Often we get above 7% increase in our properties.
Section 8 tenants have standard leases. Section 8 tenants are treated like regular tenants and follow local and federal regulations and can be evicted normally if the lease agreement is broken
The government doesn’t pay for the security deposit, but landlords are allowed to charge up to 1 month of rent in security deposit
In most markets, excluding appreciated big cities such as Miami, Los Angeles, the Section 8 rents are 10-30% higher than regular market rate
