Oklahoma Section 8 housing is required to assist at least 75% of families with income at or below 30% of the Area Median Income (AMI) before helping other families.
This means that Section 8 helps a lot of people each year in Oklahoma City. If you are a rental property owner, you could increase profits and reduce vacancy rates by becoming a Section 8 landlord.
Section 8 housing allows you to take in a larger pool of rental applicants. Keep reading to learn how Section 8 decides if your rent is reasonable.
Location
Section 8 first decides if your rent is reasonable by factoring in your location. The location needs to fall within an area covered by Section 8.
Landlords may have some wiggle room if the unit is near certain areas. If Section 8 accepts rentals as part of their coverage area, adjustments might be made to make everything work.
If you charge fair market rent, there's a good chance you avoid high vacancy rates because your rent is reasonable. Charging fair prices will get you considered for Section 8 housing.
If you live in an area where rent prices are rising, you might not be able to take Section 8 applicants. In growing communities, rent is becoming less affordable.
This isn't always a bad thing for landlords if you can find and keep great tenants who are willing to pay for premium locations.
Rental Comparisons
When Section 8 determines affordable housing for low-income tenants, they will consider the size of the rental. They will look at the unit's square footage you want to rent out.
Your rental size will be compared to a similar rental in the area. For example, if the unit has 2 bedrooms and 2 baths, Section 8 won't compare it to a 1 bedroom and 1 bath unit.
The comparisons being made have to have the same number of bedrooms, and bathrooms, and be close enough in square footage. A free rental analysis can help if you want to collect data for yourself.
If rent is not considered reasonable once comparisons are made, you won't be considered for Section 8 housing. This means you cannot accept applicants who have vouchers.
Property Condition
Rental pricing is dictated by property condition. Section 8 will look at rentals that require repairs or that are currently in the process of getting repairs. They won't compare properties that are in different repair stages.
Property condition applies to upgrades and amenities that landlords might have added to the property. Rental property repairs is one of the best ways to attract tenants, but they could make rents higher.
With newer appliances and amenities, you might not qualify as a Section 8 landlord.
Section 8 Housing: The Bottom Line
Section 8 housing helps low-income tenants pay their rent. These tenants can choose where they want to live if it's approved by the local Public Housing Agency.
If you want to increase your pool of rental applicants, it's important to know about Section 8 housing in your community. Charging a fair market price might get you considered for the program.
Our property management team at PMI OKCity Local can help you learn about Section 8 regulations and apply to be a Section 8 landlord. To start reaping the benefits of Section 8, contact us today.
