Your search results

WHAT IS SECTION 8 HOUSING IN DETROIT?

Posted by Mike Jordan on March 6, 2020
| 0
Detroit Investment Properties

A lot of investors tend to avoid Section 8 Housing due to a number of reasons. What these investors fail to understand is that this type of housing can reap a lot of benefits, especially when you plan to diversify your portfolio. Furthermore, the Detroit market in particular not only offers a large pool of tenants for Section 8 Housing to choose from on a verified waiting list, it also allows you to maximize results while you mitigate any risks and hassles at the same time. Strategy Properties is here to let you in on a comprehensive guide on Section 8 Housing, particularly in the Detroit market.

BRIEF HISTORY

The program came from a housing law passed in the 1930s during the Great Depression. At the time, the government was purely focused on providing high-quality public housing for low-income tenants. Over the years, Section 8 has undergone a number of changes and amendments which is now known as a housing choice voucher program.

This program states that eligible families can find a rental unit of their choice after receiving a voucher which covers 70%-100% of the monthly rent & may or may not cover utility bills depending on the situation and state that you’re in. Applicants who are eligible for the said voucher would be responsible for the remaining balance for the month. 

Local Public Housing Agencies (PHAs) distribute these vouchers to families who apply for it. These agencies receive their funding from the Department of Housing and Urban Development (HUD) in order to administer the program.

WHO ARE ELIGIBLE FOR IT?

These section 8 vouchers are mainly intended to provide subsidized housing to low-income tenants. However, applicants should meet certain eligibility criteria:

  • Gross family income of less than 50% of the median income in the applicant’s county
  • Must be a U.S. citizen or an immigrant with documents proving legal immigration status
  • Meet the HUD’s definition of a family

-with or without children

-at least one individual is over the age of 62

-one or more member/s of the household is disabled

-has been displaced from the home (due to government action or natural disasters)

-a single person who does NOT meet any of the above criteria

These are just the general guidelines set by the HUD. PHAs have been given flexibility to add or change some of the guidelines. In many areas, the PHA’s waiting lists for Section 8 applicants reach up to tens of thousands of families. It’s even quite common to wait for over 3 to 6 years before an application is accepted – some of the lists are even closed to new applicants. 

Most of the PHAs even have a lottery approach where, from a list of 100,000 applicants, only 10,000 spots are opened. Priorities are usually given to local residents , disabled, veterans, and the elderly. Either way, there is no guarantee that everyone will receive a voucher. 

PHAs have different ways of administering their voucher applications. The MSHDA (Michigan State Housing Development Authority) Housing Choice Voucher opens waiting lists for specific counties at a certain date and time. Applications will only be accepted for open waiting lists and one application basis only. Online applications are only accepted, meaning paper applications will not be available nor accepted.

IS IT WORTH IT?

You’re bound to receive several conflicting views when you ask different investors, landlords, and property managers whether Section 8 would be beneficial or not. Depending on your specific situation or if you’re an investor looking into this matter, Section 8 may or may not be the best choice for you. It’s imperative, therefore, to learn about the advantages and disadvantages in order to carry it out well.

ADVANTAGES

Guaranteed rental income

Since the government covers 70% of your tenant’s rent, you have a guaranteed means of income. The PHA sends the portion of your tenants directly to you and the tenant sends a separate check for their portion (30%) and pays utilities directly to the provider.

Larger pool of prospective tenants 

To give you an idea of how large the tenant pool is, the Housing Choice Voucher program handles rent and utilities from almost 2.1 million households in the U.S. With this broad of a selection, you’re given the opportunity to be picky in finding a tenant that would be the best fit for your property. 

Pre-screened tenants

With the extensive screening process of PHAs, tenants are checked thoroughly in order to avail of the voucher. Aside from income levels, PHAs turn down tenants who have a bad record from their previous landlord. In fact, any tenant who was evicted from a property within the last three years for drug-related activity will not be granted a voucher. The screening process gives extra protection for your property meaning if they pass both the PHA and your tenant screening process, your problems are brought to a minimum. 

DISADVANTAGES

Tedious

Not only does the tenant need to be considered part of the Section 8 housing program, you and your property will be involved in it as well. You would need to provide personal and detailed information about the property. You have to be aware that the HUD and PHAs are NOT responsible in finding tenants, collecting rent, making repairs, or keeping the property safe. Once you’ve been approved to house tenants, the property is subject to routine inspections and making sure that it’s structurally up to code.

Lesser control over rent

Although the HUD will not dictate how much tenants are charged for rent, the rent should be kept within the median for your area. This means that if your property is above average compared to others in the neighborhood, you may be missing out on the rent that you could have otherwise increased outside of the Section 8 program. 

Tenants can be harder to handle

The reason why Section 8 housing is controversial for landlords and investors alike is because of the tenants. Majority of their rent is already covered which prompts them to have less of an initiative to uphold their end of the bargain or keeping your property in good shape. Based on the requirements, Section 8 allows low-income tenants. Your rent from the housing department may be on time, but the rent from tenants can be delayed. On a side note, your first payment from the PHA is given to you 30-60 days after the tenant resides in the rental property.

Deciding if you’re diving into Section 8 housing for your investment can be a tough decision. If you do enough homework and keep an eye on your investment property, you’re bound to make sure everything’s in tip-top shape. The Detroit Housing Commission is a great reference for Section 8 Housing in Detroit that you can start to look into.

But the question still remains, is it worth it? Some of the best real estate investors out there can take the negatives of Section 8 Housing that warrant higher rents, and turn them into higher profits. The short answer to would be YES, it is definitely worth it as long as you have a clear grasp of the advantages and disadvantages that this type of housing can bring. 
To ease your transition when you’re about to invest in Section 8 Housing, our team of professionals from Strategy Properties can sort things out for you. We’ll take care of everything so you won’t have to worry about it! To learn more, contact (734) 224-5454 or reach out to us via email at info@strategyproperties.com.

Compare Listings

CONTACT US
221, Mount Olimpus, Rheasilvia, Mars,
Solar System, Milky Way Galaxy
+1 (999) 999-99-99
PGlmcmFtZSBzcmM9Imh0dHBzOi8vd3d3Lmdvb2dsZS5jb20vbWFwcy9lbWJlZD9wYj0hMW0xOCExbTEyITFtMyExZDYwNDQuMjc1NjM3NDU2ODA1ITJkLTczLjk4MzQ2MzY4MzI1MjA0ITNkNDAuNzU4OTkzNDExNDc4NTMhMm0zITFmMCEyZjAhM2YwITNtMiExaTEwMjQhMmk3NjghNGYxMy4xITNtMyExbTIhMXMweDAlM0EweDU1MTk0ZWM1YTFhZTA3MmUhMnNUaW1lcytTcXVhcmUhNWUwITNtMiExc2VuITJzITR2MTM5MjkwMTMxODQ2MSIgd2lkdGg9IjEwMCUiIGhlaWdodD0iMTAwJSIgZnJhbWVib3JkZXI9IjAiIHN0eWxlPSJib3JkZXI6MCI+PC9pZnJhbWU+
Thank You. We will contact you as soon as possible.
COMPANY NAME
Dolor aliquet augue augue sit magnis, magna aenean aenean et! Et tempor, facilisis cursus turpis tempor odio. Diam lorem auctor sit, a a? Lundium placerat mus massa nunc habitasse.
  • Goblinus globalus fantumo tubus dia montes
  • Scelerisque cursus dignissim lopatico vutario
  • Montes vutario lacus quis preambul denlac
  • Leftomato denitro oculus softam lorum quis
  • Spiratio dodenus christmas gulleria tix digit
  • Dualo fitemus lacus quis preambul patturtul
CONTACT US
Thank You. We will contact you as soon as possible.
PGlmcmFtZSBzcmM9Imh0dHBzOi8vd3d3Lmdvb2dsZS5jb20vbWFwcy9lbWJlZD9wYj0hMW0xOCExbTEyITFtMyExZDYwNDQuMjc1NjM3NDU2ODA1ITJkLTczLjk4MzQ2MzY4MzI1MjA0ITNkNDAuNzU4OTkzNDExNDc4NTMhMm0zITFmMCEyZjAhM2YwITNtMiExaTEwMjQhMmk3NjghNGYxMy4xITNtMyExbTIhMXMweDAlM0EweDU1MTk0ZWM1YTFhZTA3MmUhMnNUaW1lcytTcXVhcmUhNWUwITNtMiExc2VuITJzITR2MTM5MjkwMTMxODQ2MSIgd2lkdGg9IjEwMCUiIGhlaWdodD0iMTAwJSIgZnJhbWVib3JkZXI9IjAiIHN0eWxlPSJib3JkZXI6MCI+PC9pZnJhbWU+
Thank You. We will contact you as soon as possible.
COMPANY NAME
CONTACT US
Dolor aliquet augue augue sit magnis, magna aenean aenean et! Et tempor, facilisis cursus turpis tempor odio putonius mudako empero brutto populius giten facilisis cursus turpis balocus tredium todo.
Thank You. We will contact you as soon as possible.
PGlmcmFtZSBzcmM9Imh0dHBzOi8vd3d3Lmdvb2dsZS5jb20vbWFwcy9lbWJlZD9wYj0hMW0xOCExbTEyITFtMyExZDYwNDQuMjc1NjM3NDU2ODA1ITJkLTczLjk4MzQ2MzY4MzI1MjA0ITNkNDAuNzU4OTkzNDExNDc4NTMhMm0zITFmMCEyZjAhM2YwITNtMiExaTEwMjQhMmk3NjghNGYxMy4xITNtMyExbTIhMXMweDAlM0EweDU1MTk0ZWM1YTFhZTA3MmUhMnNUaW1lcytTcXVhcmUhNWUwITNtMiExc2VuITJzITR2MTM5MjkwMTMxODQ2MSIgd2lkdGg9IjEwMCUiIGhlaWdodD0iMTAwJSIgZnJhbWVib3JkZXI9IjAiIHN0eWxlPSJib3JkZXI6MCI+PC9pZnJhbWU+
CONTACT US
COMPANY NAME
221, Mount Olimpus, Rheasilvia, Mars
Solar System, Milky Way Galaxy
+1 (999) 999-99-99
Thank You. We will contact you as soon as possible.
Macbook Pro
* Intel Core i7 (3.8GHz, 6MB cache)
* Retina Display (2880 x 1880 px)
* NVIDIA GeForce GT 750M (Iris)
* 802.11ac Wi-Fi and Bluetooth 4.0
* Thunderbolt 2 (up to 20Gb/s)
* Faster All-Flash Storage (X1)
* Long Lasting Battery (9 hours)
PGlmcmFtZSB3aWR0aD0iMTAwJSIgaGVpZ2h0PSIxMDAlIiBzcmM9Ii8vd3d3LnlvdXR1YmUuY29tL2VtYmVkL3NCV1BDdmR2OEJrP2F1dG9wbGF5PTEiIGZyYW1lYm9yZGVyPSIwIiBhbGxvd2Z1bGxzY3JlZW4+PC9pZnJhbWU+
ENJOY AURORA BOREALIS
SHARE
OR
SUBSCRIBE
Vel eros amet amet mauris a habitasse scel erisque? Vel urna dis et, placerat phasellus, diam in! Placerat nec facilisis, tortor tristique. Arcu placerat sagittis, velit lorem scelerisque egestas placerat phasellus.
PLEASE SHARE US!
Vel eros amet amet mauris a habitasse scelerisque? Vel urna dis et, placerat phasellus, diam in! Placerat nec facilisis, tortor tristique. Arcu placerat sagittis, velit lorem scelerisque egestas. Lundium et, ultrices, et tempor vel proin est! Lundium sociis ac, ut ultricies ridiculus ultricies pulvinar scelerisque et adipiscing auctor, urna platea non rhoncus magna egestas montes platea sed porta nisi porta, mus integer porta elit.
PGlmcmFtZSB3aWR0aD0iMTAwJSIgaGVpZ2h0PSIxMDAlIiBzcmM9Imh0dHA6Ly93d3cueW91dHViZS5jb20vZW1iZWQvajhsU2NITzJtTTAiIGZyYW1lYm9yZGVyPSIwIiBhbGxvd2Z1bGxzY3JlZW4+PC9pZnJhbWU+
Increase more than 700% of Email Subscribers!
Dolor aliquet augue augue sit magnis, magna aenean aenean et! Et tempor, facilisis cursus turpis tempor odio. Diam lorem auctor sit, a a? Lundium placerat mus massa nunc habitasse, arcu, etiam pulvinar.
  • Goblinus globalus fantumo tubus dia
  • Scelerisque cursus dignissim lopatico
  • Montes vutario lacus quis preambul den
  • Leftomato denitro oculus softam lorum
  • Spiratio dodenus christmas gulleria tix
  • Dualo fitemus lacus quis preambul pat
  • Montes vutario lacus quis digit turtulis
  We hate spam and never share your details.
ARE YOU READY? GET IT NOW!
Increase more than 500% of Email Subscribers!
Your Information will never be shared with any third party.
SUBSCRIBE TO NEWSLETTER
Turpis dis amet adipiscing hac montes odio ac velit? Porta, non rhoncus vut, vel, et adipiscing magna pulvinar adipiscing est adipiscing urna. Dignissim rhoncus scelerisque pulvinar?
GET IT NOW
500% MORE SUBSCRIBERS
EFFICIENCY
BOOST YOUR SALES
CREATIVITY
INSPIRE YOUR VISITORS
BE UNIQUE
CREATE UNIQUE POPUPS
ARE YOU READY? GET IT NOW!
Increase more than 500% of Email Subscribers!
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis viverra, urna vitae vehicula congue, purus nibh vestibulum lacus, sit amet tristique ante odio.
ENTER YOUR NAME
ENTER YOUR E-MAIL
ENTER YOUR PHONE NUMBER
Your Information will never be shared with any third party.
SUBSCRIBE TO NEWSLETTER
All rights reserved © Company Name, 2014
Dolor aliquet augue augue sit magnis, magna aenean aenean et! Et tempor, facilisis cursus turpis tempor odio, cursus montes ac turpis. Ultrices! Massa integer augue ridiculus adipiscing, massa cras pid. Turpis placerat scelerisque, vut odio mus non, mattis porttitor, nunc odio, turpis tortor sit? Pid amet, sed facilisis.
  • Goblinus globalus fantumo tandempo
  • Scelerisque cursus dignissim donus
  • Montes vutario lacus quis arcupolisio
  • Leftomato denitro oculus tepircos den
  • Spiratio dodenus christmas popupius
  • Afrenius globalus spiritum tandempo
  • Fitatos vutario lacus quis arcup delis
Do you want massive traffic?
Dignissim enim porta aliquam nisi pellentesque. Pulvinar rhoncus magnis turpis sit odio pid pulvinar mattis integer aliquam!
  • Goblinus globalus fantumo tubus dia montes
  • Scelerisque cursus dignissim lopatico vutario
  • Montes vutario lacus quis preambul den lacus
  • Leftomato denitro oculus softam lorum quis
  • Spiratio dodenus christmas gulleria tix digit
  • Dualo fitemus lacus quis preambul pat turtulis
* we never share your e-mail with third parties.
Do you want more traffic?
Dignissim enim porta aliquam nisi pellentesque. Pulvinar rhoncus magnis turpis sit odio pid pulvinar mattis integer aliquam!
  • Goblinus globalus fantumo tubus dia montes
  • Scelerisque cursus dignissim lopatico vutario
  • Montes vutario lacus quis preambul den lacus
  • Leftomato denitro oculus softam lorum quis
  • Spiratio dodenus christmas gulleria tix digit
  • Dualo fitemus lacus quis preambul pat turtulis
  • Scelerisque cursus dignissim lopatico vutario
  • Montes vutario lacus quis preambul den lacus
SUBSCRIBE TO OUR NEWSLETTER AND START INCREASING YOUR PROFITS NOW!
* we never share your e-mail with third parties.
Do you want massive traffic?
Scelerisque augue ac hac, aliquet, nascetur turpis. Augue diam phasellus odio lorem integer, aliquam aliquam sociis nisi adipiscing hacac.
  • Goblinus globalus fantumo tubus dia
  • Scelerisque cursus dignissim lopatico
  • Montes vutario lacus quis preambul
  • Leftomato denitro oculus softam lorum
  • Spiratio dodenus christmas gulleria tix
  • Dualo fitemus lacus quis preambul bela
PGlmcmFtZSB3aWR0aD0iMTAwJSIgaGVpZ2h0PSIxMDAlIiBzcmM9Imh0dHA6Ly93d3cueW91dHViZS5jb20vZW1iZWQvajhsU2NITzJtTTAiIGZyYW1lYm9yZGVyPSIwIiBhbGxvd2Z1bGxzY3JlZW4+PC9pZnJhbWU+
* we never share your details with third parties.
ARE YOU READY? GET IT NOW!
Increase more than 500% of Email Subscribers!
Your Information will never be shared with any third party.
Schedule a Consultation
Learn how you can successfully invest in real estate with just one FREE call.
Within 24 hours, we will contact you to schedule your free consultation.
Learn strategies from our real estate experts and their proven investing methods.
Get Our Newsletter
Detroit Real Estate
Investment Tour
One of America's Top Real Estate Investment Markets
  • Locating Properties
  • Assessing Financials
  • Investment Strategies
  • Tenant Placement
  • Property Management
  • Individual Consultation
You'll Experience:
For dates and information provide your name and email address.
Are you ready to take a tour?
Detroit Real Estate Investment Tour
One of America's Top Real Estate Investment Markets

  • Locating Properties
  • Assessing Financials
  • Investment Strategies
  • Tenant Placement
  • Property Management
  • Individual Consultation
Are you ready to take a tour?
For dates and information call (734) 224-5454 or please share your contact information below
We provide limited amount of properties on our website. For more properties, contact us.