With over 9 million Americans qualifying for Section 8, it's becoming more usual to see landlords leverage this kind of rent assistance for their benefit. However, several factors may impact whether you can accept these housing vouchers. For example, are you struggling to understand how this program assesses if your rent is "reasonable"?
The insights in this article will help you set your unit's rent to match "fair market rent" (FMR) and local rates. You can then leverage the Tacoma rental landscape to boost what you get out of Section 8 in the long term.
Understanding the Section 8 Rental Process
While Section 8, or the "Housing Choice Voucher Program," can help low-income families afford housing, you need to understand whether it applies to your units. The program starts by comparing your property to similar units in the Tacoma area as defined by several factors, primarily the number of bedrooms.
Section 8 compares your unit to the FMR of the area. The U.S. Department of Housing and Urban Development (HUD) defines this based on the rent for the location and all utilities except telephones.
The goal of FMR is to ensure that rental housing is available on Section 8 at a reasonable price and that it can help as many low-income families as possible.
Understanding Reasonable Rent Guidelines
HUD defines reasonable rent as being below the 40th percentile. They clarify this as the price point "below which 40 percent of the standard-quality rental housing units are rented."
Many factors can thus impact this, including:
- Tacoma rental market trends
- Property amenities
- Location
- Property size
- Property condition
As such, you may find it helpful to contact an assessor or property manager to offer a rental analysis on your property.
Tacoma's Rental Market and Its Impact on Rent Decisions
Tacoma's rental market is exceptionally competitive, with rent increasing due to rental demand often outstripping supply. For example, World Population Review reports that around 2,500 new residents have moved in each year over the past decade.
This population growth means it's crucial to keep an eye on rental estimates for the area. Doing this allows you to set your rent at a level that will enable you to benefit significantly from the Section 8 program.
Rental Compliance Tips for Setting Reasonable Rates
To match FMR for your property, you need to take into account several factors, including:
- Unit condition
- Unit size
- Unit location
- Local economy
Improving any of these offers an opportunity to increase the rent you charge.
Failure to align with FMR after this could lead to a loss in potential tenants while re-attempting to match the price. As such, working with a professional in Section 8 property could offer benefits by removing a lot of the guesswork.
Navigating Section 8 with PMI South Sound
Leveraging Section 8 is essential for any landlord who wants to ensure their revenue continues to grow along with local standards. You need to partner with someone with the landlord resources in Tacoma to get your unit in position to make the most of the program.
PMI South Sound can help you optimize your property and take advantage of everything Section 8 offers. So, visit our website for a rental analysis and discover how to get the most out of your unit.
