A common question in real estate investing is whether or not to rent to Section 8 tenants.
Some landlords build entire portfolios around it—others won’t touch it with a 10-foot pole.
So what’s the reality?
In this post, I’ll break down how the program works, the pros and cons, and share our real-world experience after several years of working with Section 8 rentals.
What Is Section 8?
Section 8—now more commonly known as the Housing Choice Voucher (HCV) Program—is a federal housing program run by the U.S. Department of Housing and Urban Development (HUD).
The goal is simple: help low-income families, seniors, and individuals with disabilities afford housing.
Here’s how it works:
- Tenants receive a voucher that covers part (or sometimes all) of their rent
- A local Public Housing Authority (PHA) administers the program
- Landlords must register and be approved to participate
- The PHA determines how much rent assistance each tenant receives
Pros of Section 8 Rentals
Consistent Rent Payments
The government-paid portion of rent is extremely reliable. In our experience, those payments have never been missed.
Defined Rent Benchmarks
HUD sets “Fair Market Rent” (FMR) by area and unit size, giving landlords a clear pricing framework.
Potential for Rent Growth
As FMR increases over time, landlords can often raise rents accordingly.
Built-In Tenant Pool
PHAs maintain a list of voucher holders, which can help with marketing and filling vacancies.
Longer Tenant Retention
On average, tenants in the program tend to stay longer than traditional renters.
Cons of Section 8 Rentals
More Red Tape
More paperwork, more approvals, and slower timelines. Everything takes longer.
Required Inspections
Units must pass annual inspections—and sometimes random ones—which can be disruptive for both landlords and tenants.
Rent Limitations
FMR doesn’t always match true market rent. In some cases, you may be able to earn more on the open market.
Stigma
There can be a negative perception around Section 8 properties, which may impact neighborhood dynamics or resale value.
Our Experience
We currently have 3 units on the program and have been working with Section 8 for about 4 years.
Overall, our experience has been positive—but not without challenges.
Here are a few key takeaways:
1. Rent Is Reliable… But Not Fully Guaranteed
HUD has never missed a payment. However, tenants are often responsible for a portion of the rent—and that piece can still be late or unpaid.
Bottom line:
**You still need to screen tenants carefully.
2. Fair Market Rent Can Work in Your Favor
In our market, HUD’s Fair Market Rent is actually slightly above average market rent.
From a pure income standpoint, that’s been a benefit.
3. Inspections Add Friction
Even when you maintain your properties well, annual inspections can become a hassle.
In one case, we had a unit inspected twice in 12 months due to a random selection.
It’s not a dealbreaker—but it’s definitely a factor.
4. The Tenant Pool Isn’t Always Stable
At one point in late 2024, our local PHA paused issuing new vouchers due to funding constraints.
That meant:
- Fewer eligible tenants
- Longer vacancy periods
This is something many investors don’t consider upfront.
Final Takeaway
There are clear pros and cons to renting through the Section 8 program.
For us, it’s a useful tool—but not a primary strategy. We’ve kept a small portion of our portfolio in the program and plan to keep it that way.
If we can find strong tenants in the open market, we generally prefer that route.
At the end of the day:
- Section 8 offers more income stability
- But requires more time, patience, and flexibility
Or put simply:
It’s a tradeoff between reliability and efficiency.
If you value speed and control in your leasing process, Section 8 may feel restrictive.
But if you’re willing to navigate the extra friction, it can be a consistent and viable piece of a rental portfolio.
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Thanks for reading this week’s Experience, and best of luck in your real estate investing journey!
– BROCK