Greenville, SC, is committed to providing affordable housing for all its residents, with numerous housing programs available and over 100 new affordable homes under construction.
The federally backed Section 8 housing voucher program is one of those on offer in the city. It allows private landlords to assist with providing housing for needy families.
Under this program, Section 8 tenants pay up to 70% of their rent with government-funded vouchers, so it's an excellent way to secure guaranteed income for your Greenville rental units. The catch is that you must charge a reasonable rent to be considered as a Section 8 housing provider.
Read on to learn how Section 8 calculates these amounts.
Rent Reasonability Criteria
Reasonable rent calculations depend on two figures. These are:
Fair Market Rent (FMR)
Fair market rent is equal to the 40th percentile of rent prices in an area. It's calculated by conducting a rental analysis of all rental units in a neighborhood, except newer homes (under 15 months old) and luxury dwellings.
The 40th percentile is an amount where 40% of the units in the area are cheaper and 60% are more expensive.
PHA's Payment Standard
Using FMR as a guide, the local public housing authority calculates rent amounts for each unit size available in an area. This is the maximum amount the PHA will pay for accommodation in the Section 8 program.
This payment standard is usually between 90% and 110% of the FMR for each unit size. Tenants must pay the balance, but this cannot amount to more than 30% of their household income per month.
Benefits for Section 8 Landlords
The biggest benefit of being a Section 8 landlord is the assurance that most of your rent will be paid on time every month, but Section 8 recipients usually make good tenants, too.
They pay their rent on time, take good care of your property, and usually renew their leases. If they don't pay their rent on time and take good care of your property, they could lose their benefits under this program.
The housing authority only vets tenants according to income criteria and some criminal offenses. You should still carry out your usual tenant screening processes for these applications.
It's also important to continue with property inspections as you would with any other tenant and continue with your property maintenance program to ensure your rental units continue to meet the criteria stipulated by the Section 8 housing program.
Maximize the Benefits of Being a Section 8 Landlord
Signing up as a landlord in the Section 8 housing program can be a stress-free option for South Carolina landlords, especially if you get expert help along the way.
PMI Upstate SC is a full-service property management company serving the Greenville area. Our expert team is well-versed in affordable housing guidelines and has many years of experience in the Greenville rental market.
We strive to ensure profitability for all our landlords using the latest technology and can help navigate the process of becoming a Section 8 landlord if you choose to do so.
Browse our blog for more property management tips or reach out for assistance with your Greenville investment properties.
