Section 8

The properties that we acquire via our bond offering are let to low income families who qualify for rent assistance under the Section 8 housing program, now known as the Housing Choice Voucher Program.

This is important because it allows us to purchase a property, refurbish it, let it to a family that qualify for rent assistance and still achieve a 20%+ net yield. The rent is paid direct to us and is underwritten by the US Government.

Section 8And that’s not all………..this housing scheme which is managed by the Housing and Urban Development (HUD) government department also ensures that your property is really well looked after. How? By insisting on what is known as a “one strike policy”.

Unlike the UK where unruly tenants can cause a huge amount of damage to the landlords property and after eviction, get re-housed, in the US under this Government backed scheme, if the tenant is causing a problem or mistreating the property they are given 30 days in which to rectify the issue. If they fail to comply a HUD inspector is notified and the tenant is evicted. Whats more, having been evicted, the tenant loses any further rights to join a section 8 program anywhere in the US.

The HUD Housing Choice Voucher program frequently covers 100% of the rental income, so you can see exactly why a tenant would not want to lose their Section 8 status.

The scheme is so popular that there are huge waiting lists, which run into thousands in most Cities, another plus point for the property investor.

Section 8 Highlights

  • Earn NET Yield 20%+
  • Income GUARANTEED by US Government
  • Regular Property Inspection by HUD
  • Unruly tenants evicted by HUD
  • One Strike policy encourages tenants to look after property
  • Huge waiting list ensures no void periods

The housing choice voucher program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments.

The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects. Housing choice vouchers are administered locally by Public Housing Agencies (PHAs). The PHAs receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program.

A family that is issued a housing voucher is responsible for finding a suitable housing unit of the family's choice where the owner agrees to rent under the program. This unit may include the family's present residence. Rental units must meet minimum standards of health and safety, as determined by the PHA.

A housing subsidy is paid to the landlord directly by the PHA on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Under certain circumstances, if authorized by the PHA, a family may use its voucher to purchase a modest home.

The Housing Choice Voucher Program Fair Market Rent in Chicago for 2014 is:

1 Bed   $826/ Mth

2 Bed   $979/ Mth

3 Bed   $1,248/ Mth

4 Bed   $1,455/ Mth

 


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