Section 8 Housing: A Complete Guide for Private Landlords

By PropsManager Team · Legal & Compliance · Aug 07, 2025

I'll never forget the first time a prospective tenant handed me a Housing Choice Voucher packet. I stared at that stack of paper — easily 30 pages — and thought, "This is going to be a nightmare." That was twelve years and about $480,000 in guaranteed government rent payments ago. Turns out, it wasn't a nightmare at all. It was one of the smarter business decisions I've made.

Section 8, officially the Housing Choice Voucher (HCV) program, is the federal government's largest rental assistance program. It serves roughly 2.3 million households across the United States and funnels approximately $27 billion annually directly into landlords' bank accounts. Yet most private landlords won't touch it. Some are scared off by horror stories. Others just don't understand how it works.

Let's fix that.

What Exactly Is Section 8?

The Housing Choice Voucher program is administered by the U.S. Department of Housing and Urban Development (HUD) through local Public Housing Authorities (PHAs). Here's the simple version: a qualifying low-income family receives a voucher that covers a portion of their rent. The PHA pays that portion directly to you, the landlord, via direct deposit every single month. The tenant pays the remaining portion — usually 30% of their adjusted monthly income — to you separately.

So if you're renting a three-bedroom unit at $1,500/month and the PHA determines it will cover $1,100, you get $1,100 deposited on the first of the month from the government and $400 from the tenant. That $1,100 hits your account like clockwork, regardless of whether the tenant lost their job, had a medical emergency, or just forgot.

Who Qualifies for Section 8?

Tenants must earn below 50% of the area median income (AMI) to qualify, with 75% of vouchers going to families at 30% AMI or below. In practice, this includes working single parents, seniors on fixed incomes, disabled individuals, and families transitioning off other assistance programs. The waiting list in most cities is years long — sometimes a decade. These tenants fought hard for that voucher, and they know losing it means going back to the end of the line.

That matters. More on that later.

The Pros of Accepting Section 8 Tenants

Let's start with the money, because that's what keeps your mortgage paid and your investment growing.

Guaranteed Government Rent Payments

This is the big one. The PHA portion of rent is guaranteed. It arrives via direct deposit every month, on time, without fail. I've had market-rate tenants bounce checks, Venmo me three days late, and send me every excuse in the book. The government? They just pay. During COVID-19, when eviction moratoriums froze the rental market and landlords across the country went months without income, Section 8 landlords kept getting that direct deposit. According to a 2021 study by the Joint Center for Housing Studies at Harvard, Section 8 landlords reported significantly fewer missed payments during the pandemic compared to landlords renting at market rate.

That financial stability is worth something — especially if you're leveraged and counting on rental income to cover your mortgage.

A Deep, Reliable Tenant Pool

There are currently over 10 million families on Section 8 waiting lists nationwide. Demand massively outstrips supply. When you list a Section 8-eligible unit, you won't be sitting on a vacancy for six weeks hoping the right applicant shows up. You'll have applicants within days. In hot voucher markets — think Houston, Memphis, Indianapolis, and most of the Southeast — you might have a dozen qualified applicants within a week.

Less vacancy time means less lost income. A single month of vacancy on a $1,400/month unit costs you $1,400 plus utilities, lawn care, and the risk of vandalism. Filling units fast is worth real money.

Longer Tenancies

Here's a statistic most landlords don't know: the average Section 8 tenant stays 4.7 years, compared to roughly 2.1 years for market-rate tenants. Why? Because moving with a voucher is a massive pain. The tenant has to find a new landlord willing to accept it, get the new unit inspected and approved, and navigate paperwork with the PHA — a process that can take 60 to 90 days. Most voucher holders simply don't move unless they absolutely have to.

Longer tenancies mean fewer turnovers. Fewer turnovers mean less money spent on cleaning, painting, advertising, and showing units. My average turnover cost runs about $2,800 between make-ready repairs, lost rent during vacancy, and marketing. If a Section 8 tenant stays five years instead of two, that's one turnover instead of two or three — saving me $2,800 to $5,600 per unit.

Reduced Risk of Non-Payment

Remember what I said about tenants fighting to keep their voucher? It's real. A tenant who violates their lease — including not paying their portion of rent — risks losing their voucher permanently. There's no "getting another one." They go back to the end of a waiting list that might be eight years long. This creates a powerful built-in incentive for compliance that market-rate tenants simply don't have.

I'm not saying every Section 8 tenant is perfect. They're not. But the ones who understand the stakes? They take care of the property and pay on time because the alternative is devastating.

The Cons of Section 8: What You Need to Know

I'm not going to sugarcoat this. There are legitimate downsides, and you need to understand them before signing your first Housing Assistance Payment (HAP) contract.

HUD Inspections Can Be Picky

Before a Section 8 tenant can move in, your unit must pass a Housing Quality Standards (HQS) inspection. And then it'll need to pass one every year (or every two years, depending on the PHA). These inspections check for:

• Working smoke and carbon monoxide detectors
• No peeling or chipping paint (especially in pre-1978 buildings — lead paint is a big deal)
• Functional plumbing with hot and cold water
• Secure handrails on all stairs
• No broken windows or missing screens
• Working HVAC systems
• Proper electrical outlets (GFCIs in bathrooms and kitchens)
• No trip hazards
• Adequate weatherization

Here's what catches most landlords off guard: an inspector can fail you for a missing outlet cover plate. A cracked window pane. A toilet that runs. Stuff you might let slide for a month with a market-rate tenant will cause a failed inspection and delay your first rent payment.

The fix? Just keep your units in good shape. Honestly, everything on the HQS checklist is something you should be maintaining anyway. If an HQS inspection would fail your unit, that's a sign you've been deferring maintenance you shouldn't be deferring.

Fair Market Rent Caps

The PHA sets a Payment Standard based on HUD's Fair Market Rent (FMR) for your area. You can't charge whatever you want. In many markets, the Payment Standard lands right around the 40th to 50th percentile of local rents. If market rent for a comparable three-bedroom in your area is $1,800, the PHA might cap total rent at $1,500 or $1,600.

This matters most if you own properties in A-class or B-class neighborhoods where rents skew higher. But if you're renting C-class or B-minus properties — which is where most of the real cash flow in rental investing happens anyway — the FMR cap is often right in line with what you'd charge on the open market.

Pro tip: Some PHAs offer exception payment standards up to 110% or even 120% of FMR for high-demand areas. Always ask.

Bureaucracy and Paperwork

I won't lie — the onboarding process for your first Section 8 tenant is slow. Between the tenant submitting their Request for Tenancy Approval (RFTA), the PHA reviewing your lease, scheduling an inspection, and processing the HAP contract, you're looking at 30 to 60 days before that first rent payment lands. Some PHAs are faster. Some are painfully slow.

After the first tenant, it gets easier. You learn the forms, you know what the inspector wants, and you build a relationship with the PHA staff. I've got a caseworker I can text when something needs expediting. That didn't happen overnight, but it's worth its weight in gold now.

Damage and Wear

Let's address the elephant in the room. Some landlords worry that Section 8 tenants cause more damage. Look, I've seen $8,000 in damage from a market-rate tenant making $85,000 a year, and I've had Section 8 tenants leave a unit cleaner than they found it. Damage isn't about income level. It's about screening.

Which brings us to the most important section of this entire guide.

Section 8 Tenant Screening Comparison

How to Screen Section 8 Tenants the Right Way

This is where landlords get it wrong. They either skip screening entirely because "the government is paying" (terrible idea) or they reject all voucher holders blanket-style because of bias (also a terrible idea, and increasingly illegal).

You screen Section 8 applicants the same way you screen anyone else. Period. Run a credit report. Pull the eviction history. Call the last two landlords and ask the only question that matters: "Would you rent to this person again?"

The one thing you can't do — in a growing number of states and cities — is reject someone solely because they hold a voucher. This is called "source of income" protection, and it's now law in places like California, New York, New Jersey, Oregon, Connecticut, and dozens of individual cities. Check your local laws.

What to Look for in a Great Section 8 Tenant

• Clean rental history with no prior evictions
• Positive references from previous landlords
• Stable voucher (they've held it for at least a year)
• Reasonable credit score — I'm not looking for 750, but I want to see they pay their bills
• No violent criminal history

When you find a good Section 8 tenant, treat them well. Fix things promptly, communicate clearly, and they'll stay for years. I've got one tenant going on seven years now. Haven't had a single issue.

The Section 8 Onboarding Process: Step by Step

Here's what the process actually looks like from start to finish:

1. Tenant finds your listing — They'll contact you with their voucher paperwork.
2. You screen the tenant — Credit, background, rental history, references. Same as always.
3. Tenant submits RFTA — The Request for Tenancy Approval goes to the PHA with your proposed lease and rent amount.
4. PHA reviews rent reasonableness — They compare your asking rent to comparable units. If it's too high, they'll negotiate.
5. HQS inspection scheduled — An inspector visits your unit. Fix anything flagged.
6. HAP contract signed — This is between you and the PHA. It locks in the rent amount and payment terms.
7. Tenant signs lease and moves in — Standard lease, with an HCV addendum attached.
8. Rent payments begin — PHA portion via direct deposit, tenant portion per your lease terms.

The whole process typically takes 30 to 45 days for an experienced landlord. Budget 60 days your first time through.

Managing Section 8 Tenants Effectively

Once your tenant is in place, management isn't dramatically different from any other tenancy. You still need to collect the tenant's portion on time, handle maintenance requests, and document everything. But there are a few Section 8-specific things to keep in mind.

Annual Inspections

The PHA will schedule an annual re-inspection (some PHAs have moved to biennial). Treat it like a final exam you already know the answers to. Do a walk-through a week before and fix anything questionable. A $3 outlet cover is a lot cheaper than a failed inspection that delays your rent payment.

Rent Increases

You can request annual rent increases through the PHA. Most PHAs allow increases in line with FMR adjustments. Submit your request 60 to 90 days before the lease anniversary. Don't get greedy — a 3% to 5% annual increase usually gets approved without pushback. Asking for 15% will get denied and waste everyone's time.

Lease Violations

If your Section 8 tenant violates the lease, you handle it exactly like any other tenant: written notice, cure period, and if necessary, legal eviction. The PHA doesn't protect tenants from consequences. In fact, the PHA may terminate the tenant's voucher if they're evicted for cause. Document everything. Send copies of violation notices to the PHA caseworker — they can sometimes intervene before things escalate.

Tools like PropsManager make tracking lease compliance, documenting maintenance requests, and managing rent collection across both Section 8 and market-rate tenants far simpler. Having everything in one dashboard — inspection dates, lease anniversaries, payment history — means nothing falls through the cracks.

Is Section 8 Right for Your Portfolio?

Not every property or every landlord is a good fit for Section 8. Here's a quick gut check:

Section 8 is a great fit if you:

• Own C-class or B-minus properties in areas where FMR aligns with market rent
• Want predictable, guaranteed cash flow
• Don't mind keeping your properties up to HQS standards (which you should be doing anyway)
• Have the patience for some upfront paperwork
• Want to reduce vacancy rates and turnover costs

Section 8 might not be for you if you:

• Own luxury or A-class properties where market rents far exceed FMR
• Want absolute minimum contact with government agencies
• Aren't willing to maintain properties to HQS standards
• Are in a market where the PHA is notoriously slow or disorganized

For landlords managing multiple units, the math often tips strongly in favor of Section 8 — especially when you factor in the reduced vacancy, lower turnover, and guaranteed payments. If you're scaling a portfolio and want to track which units are Section 8 versus market-rate, tools like PropsManager let you segment your portfolio and track payment sources, inspection schedules, and lease terms all in one place.

Common Section 8 Myths — Debunked

"Section 8 tenants destroy properties." Income doesn't predict behavior. Screen properly, and you'll find tenants who take pride in their homes just like anyone else.

"The government tells you what to charge." Not exactly. They set a ceiling, and you negotiate within it. In many markets, that ceiling is right where you'd price the unit anyway.

"You can't evict Section 8 tenants." Completely false. You evict them the same way you'd evict anyone — through the legal process. The PHA doesn't stop you.

"It's not worth the hassle." When a single Section 8 tenant stays five years and pays $1,200/month like clockwork — that's $72,000 in rent with zero collection headaches for the guaranteed portion. Tell me that's not worth some paperwork.

Explore More PropsManager Resources

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• Compare Property Management Software — See how PropsManager stacks up against Buildium, AppFolio, Rent Manager, and Propertyware.
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• AI-Powered Property Management — Discover how automation can save you 5–10 hours per week.
• Solutions for Property Managers — Scale from 50 to 500+ units without scaling your costs.

Frequently Asked Questions

Can I choose which Section 8 tenants to accept?

Yes. You screen Section 8 applicants the same way you screen any other tenant — credit checks, background checks, rental references, and eviction history. What you can't do in many jurisdictions is reject someone solely because they have a voucher. But you can absolutely deny an applicant who fails your standard screening criteria. Your screening standards just need to be applied consistently to all applicants, voucher or not.

How long does it take to get the first Section 8 rent payment?

Plan for 30 to 60 days from the time the tenant submits the Request for Tenancy Approval. The timeline includes PHA rent review, HQS inspection, and HAP contract execution. Some PHAs are faster, some slower. After the first payment, subsequent payments arrive on the same date every month via direct deposit. The wait is front-loaded — once you're in the system, it runs on autopilot.

What happens if a Section 8 tenant stops paying their portion?

You handle it the same way you would with any tenant. Issue a pay-or-quit notice per your state's landlord-tenant law. If they don't pay, proceed with the eviction process. It's also smart to notify the PHA caseworker, as non-payment of the tenant's share can result in voucher termination. This gives the tenant extra incentive to resolve the issue quickly. The PHA portion continues to be paid to you during this process.

Can I raise the rent on a Section 8 unit?

Yes, but the increase must be approved by the PHA. Submit your rent increase request 60 to 90 days before the lease anniversary (check with your PHA for their specific timeline). The PHA will evaluate whether your new rent is reasonable compared to similar units in the area. Moderate increases — typically 3% to 5% annually — are usually approved without issue. Excessive increases will be denied.

Do I need a special lease for Section 8 tenants?

You use your standard lease agreement with one addition: the HCV Tenancy Addendum provided by the PHA. This addendum outlines the terms specific to the voucher program and takes precedence over conflicting terms in your lease. It's non-negotiable — you must include it. Beyond that, your lease can contain all your normal terms, late fees, pet policies, and rules.

Take Control of Your Section 8 Portfolio

Whether you're accepting your first voucher holder or managing fifty Section 8 units across multiple properties, staying organized is everything. Missed inspection dates lead to payment delays. Lost paperwork means phone tag with PHA caseworkers. Forgotten rent increase requests mean leaving money on the table.

PropsManager was built for landlords who manage real portfolios with real complexity — including Section 8 units. Track inspection schedules, automate rent collection for tenant portions, store HAP contracts and inspection reports, and keep your entire operation running from one dashboard.

Ready to streamline your rental management? Check out our plans or request a demo and see how PropsManager handles the details so you can focus on growing your portfolio.

Related reading:

• How to Handle Late Rent Payments Professionally
• Fair Housing Laws: What You Can and Cannot Ask
• How to Set the Right Rent Price for Your Market