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How to Become a Section 8 Landlord in Washington, D.C.

Posted on by Bay Property Management Group

How to Become a Section 8 Landlord in Washington, D.C.The prevalence of Section 8 housing is growing within D.C. and surrounding suburbs. Changing laws may increase the amount of affordable housing in the area, so it’s a good idea to learn more about what that means for you as a landlord or property manager. Read on to know what to expect when becoming a Section 8 landlord in Washington, DC.

Contents of This Article: 

What is Section 8 Housing? 

Section 8 housing is the collective term for the Department of Housing and Urban Development’s (HUD) Housing Choice Voucher program. The program assists people nationwide who need help with some or all of their rent. That said, a property needs to be certified by HUD to qualify. Most properties don’t require vouchers, but some choose to due to the perceived benefits. As a landlord or property manager in Washington, DC, knowing about Section 8 housing and how a tenant may qualify is important. 

In rare cases, the voucher program covers the entirety of rent, but more commonly, a tenant will still be responsible for 30-40% of the rent on average, according to ProPublica. There are four requirements a tenant must have when applying for a Housing Choice voucher. These include:

  • Family Status
  • Income
  • Eviction History
  • Citizen Status

Family Status

A tenant must qualify for HUD’s definition of a family. The family description, as explained on their website, includes:

  • Being with or without children
  • One or more household members have a disability
  • Someone 65 or older is part of the household
  • The family has been displaced
  • The tenant remains in the home after the family moves out and was previously receiving section 8 as a household
  • A single individual who doesn’t meet any of the above information

Income

Income is a large deciding factor in who qualifies for Section 8 housing. Tenants must have a low income to receive a housing voucher, as the program is designed to help those who can’t afford rent. There are three ways HUD determines how much money a household will receive as assistance:

  1. Low-income: Makes 80% of the area’s median income
  2. Very low-income: Makes 50% of the area’s median income
  3. Extremely low-income: Makes 30% of the area’s median income

Anyone above 80% of the median income in the area is not eligible for Section 8 housing.

Eviction History

Tenants who have previously been evicted are a red flag. That said, depending on the circumstances, previous evictions don’t automatically make a tenant ineligible. However, those who have been evicted in the past three years for drug-related crimes or have been convicted of producing methamphetamine while receiving housing assistance will not be eligible.

Citizen Status

When applying for Section 8 housing, the tenant must prove that they’re a U.S. citizen or eligible immigrant status. Eligible immigrant statuses for federal housing assistance include some of the following. 

  • Legal Permanent Residents (LPRs)
  • Long-term residents since 1948.
  • Refugees or Asylees
  • Parolees
  • Human trafficking victims
  • Violence Against Women Act self-petitioners

There may be other instances where a non-citizen qualifies for federal housing assistance, so it’s best to double-check with laws regarding eligibility.

Pros and Cons of Accepting Section 8 Vouchers

There are pros and cons to every leasing type, including Section 8 housing. It is essential to know these and weigh them before becoming a Section 8 landlord in Washington, DC. Some of the pros and cons of voucher housing include the following.

pros-and-cons-of-accepting-section-8-housing-vouchers

Pros of Accepting Section 8 Vouchers

  • Guaranteed Rent- The government generally pays a majority of the tenant’s rent, so worrying about rent collection will be less of a concern. Tenants are aware that they are still required to pay their portion of the rent, or they risk being evicted.
  • Long-Term Tenants- The waitlist for housing vouchers can be long – sometimes years. Additionally, there isn’t an abundance of properties that accept Section 8 vouchers. Therefore, Section 8 tenants generally stay long-term, making you less likely to have frequent and costly vacancies.
  • Shorter Vacancy- Accepting Section 8 vouchers is a great way to fill vacancies. Sites like GoSection8.com are rental sites dedicated to helping prospects find available housing.

Some other pros include free yearly inspections, less paperwork for you as a landlord, and timely payments!

Cons of Accepting Section 8 Vouchers

  • Rent Controlled– This type of housing is rent-controlled. Therefore, HUD needs to improve rental rates and increase the rental rates based on the historic rental tables in the area.
  • Red Tape– Due to the government’s process and a massive amount of applications, there is a long waitlist and a lot of red tape. Therefore, the tenants’ approval process may take much longer than your standard screening.

How to Become a Section 8 Landlord in D.C.

Are you interested in becoming a Section 8 landlord in D.C.? Here are some tips to consider. The following information comes from the D.C. housing website:

  • Advertise housing with DCHA, which is free and easy. Just include “we welcome voucher holders” in the advertising copy.
  • Screen applicants and obtain their Request for Tenancy approval packet, which contains all the needed documents you’ll need for the HCVP leasing department.
  • Schedule a certified inspection through the housing department.
  • Once the property passes the inspection and all documents are signed, the tenant, landlord, and DCHA will meet to finalize the move. A direct deposit is set up during this time.

Manage Your DC Property With Ease

Are you a landlord looking to turn your Washington, DC, investment property into Section 8 housing? Contact a Washington, DC, property management company to help cut through the red tape and get started today. 

Our team of highly skilled property managers at Bay Property Management Group Washington, D.C., will help with everything from getting your property on the market to finding the right Section 8 tenant for your rental property.

BMG proudly offers full-service property management in Northern Virginia, Washington DC, Baltimore, and Philadelphia. Ask us how we can help your rental business succeed today!

Bay Property Management Group