What Is a Section 8 Approved House?
Gaining Section 8 approval can provide dependable income from your rental property. Section 8 is a government-sponsored program that provides subsidies to property owners who rent homes to low-income families. Approved applicants for the program typically receive a voucher they can use in either approved public housing, privately owned homes or apartment complexes. Approved properties must meet standards set by the Department of Housing and Urban Development (HUD) before the owner can accept Section 8 tenants.
Registration
Owners must register a home with the local housing authority to gain Section 8 approval. Each local housing authority manages the Section 8 homes in its area. The amount of money granted by the federal government determines how many homes the authority can accept into the program. Homeowners interested in the program should request a Landlord Certification form from the housing authority to begin registration.
Inspection
Local authorities inspect Section 8 homes to ensure the safety of future tenants. An approved home complies with the local housing code and its electrical and gas systems are in safe working order. Homes must have working smoke detectors, working windows and doors and adequate heating and air-conditioning systems. Working plumbing is necessary, and no paint can be peeling. Your local housing authority may have other requirements the home has to meet before you can rent through the Section 8 voucher program.
Lease Agreement
Approved Section 8 leases must include a HUD Tenancy Addendum. This addendum is your agreement with the local housing authority and stipulates the terms you and the tenant must agree with to receive payments from the agency. If your lease contradicts the addendum, that documents takes precedence and decides any future disputes between any of the involved parties.
Renting a Section 8 Home
After approval, you can list your rental with your local housing authority and advertise your home in classified ads and Internet listings. Include a statement in your advertisements telling prospective tenants of your Section 8 status. The portion of the rent the voucher covers is dependent on the tenant's gross income and the area's fair market rent value. You will receive the portion of the rent covered by the voucher from the housing authority and must collect the rest from your tenant.
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