How Section 8 Decides If Your Rent Is Reasonable in Phoenix, AZ

Over 3 million households rent out residences that qualify for Section 8. More than 80% of those households earn less than $20,000 per year. Needless to say, many families would be homeless if it weren't for this kind of housing assistance.

Part of whether or not your household qualifies for Section 8 depends on whether you charge reasonable rent. Reasonable rent means that you aren't charging too much for a unit when compared with a comparable one. That includes factors such as the type of unit, property condition, and location.

Here is how the Housing Authority determines if your rental income is reasonable or not.

Market Comparisons

The main factor that decides whether or not you qualify for Section 8 housing is how your rent compares with comparable units in your area. Competitive Market Analysis (CMA) determines your property's value. You're then expected to charge rent within a certain range.

Of course, this value will change depending on factors like utilities, pet deposits, and amenities.

Unit Size and Type

What is considered a reasonable rent will depend on the type of unit you're renting out. This includes the size of the unit, how many rooms there are, and what it classifies as.

A large condominium will naturally cost more to rent out than a studio apartment. Voucher holds must pay about 30% of their monthly adjusted gross income. The program covers the remainder up to a certain limit.

Property Condition

Part of the property's assessment will involve the condition it is currently in.

For example, someone may try to rent out their property and claim that there's a pool available for use by the residents. This would make it comparable to other properties with public pool access. However, having a poorly maintained pool or revealing that the claim was a lie will work against the landlord.

A Section 8 landlord must take care of their property, whether it's by themselves or with a property manager.

Location

Where your rental property is located has a big effect on how much you can change for rent. Reasonable rent takes into account the safety of the neighborhood and its proximity to schools and public transportation. The Housing Authority will also look at the condition of neighboring houses and their rental income.

HuD Fair Market Rent Guidelines

The Department of Housing and Urban Development (HUD) publishes annual guidelines that determine the Fair Market Rent of an area. The rent you charge must not significantly exceed the amount for this area or you risk violating tenant rights. This information can be found on the HUD's official website.

Become a Section 8 Landlord

The whole point of Section 8 is for low-income families, the elderly, and the disabled to find affordable and safe housing. In addition, landlords can find a reliable source of money by renting through Section 8 vouchers. It's a win-win situation for both parties as long as reasonable rent is charged.

Real Property Management Phoenix Valley has over 25 years of experience in Real Estate in the Phoenix Valley area. We can ensure you get your rent and renew as many leases as possible. Reach out today to learn more and get a management quote.