April 7, 2025 | 2 Minute Read
Section 8 has added significant stability and consistent income across our entire SFR portfolio. Most importantly is the strategies we implement to exponentially increase our rents each year.
The secret sauce is in how you negotiate the max rent with Section 8. Let me show you how I do it.
But first, let’s discuss the advantages and disadvantages of working with Section 8 tenants:
Benefits of Section 8 Tenants
Reliable Rent Payments
In most cases, Section 8 covers 100% of the rent. A few tenants may pay a small portion, but overall, this means fewer headaches chasing late payments.Long-Term Tenancy
On average, Section 8 tenants stay for five years. Some have been with us for seven years or longer. This stability helps reduce turnover and vacancy costs.Simplified Application Process
While screening applicants is still important, you don’t need to verify income or employment as thoroughly as with market-rate tenants—since Section 8 is footing most of the bill.Free Property Inspections
Section 8 requires an inspection before approving a lease, which effectively gives you a free property inspection. If your property passes on the first try, the tenant will be approved to move in. If it fails, there could be delays of a few weeks before a reinspection.
Review your local housing authority’s inspection checklist in advance (for the example above, View the Complete Section 8 Housing Birmingham’s checklist
Disadvantages of Section 8 Tenants
Rent Increases Are Regulated
Unlike private tenants, you usually can’t raise rent during the first two years. Even after that, you must follow a specific process—submitting a rent increase request using a designated form 60–90 days before the lease ends. Miss that window, and you’ll wait another year.Tenant Portion Adjustments
Sometimes, Section 8 will increase the tenant’s portion of the rent. If the tenant can’t or won’t pay, your total rent collected drops. If you move to evict, Section 8 stops paying entirely—and you’re responsible for the entire legal process.Property Condition at Move-Out
Section 8 tenants stay longer, but when they do leave, the property may need more than just a basic cleaning and paint job to be rent-ready again.
Strategy for Maximizing Section 8 Rents
It all starts with the initial phone call with the tenant prospect. I ask the following key questions:
Which housing authority are you with?
Do you have your voucher package in hand?
When do you need to move?
Why are you leaving your current residence?
How many people will live in the home, including yourself?
What is the maximum rent your voucher allows?
That last question is crucial.
Let’s say I expected $1,400 in rent, but the tenant’s voucher allows up to $1,680. I’ll submit a rent request for $1,700—and 90% of the time, Section 8 approves it.
Even if a caseworker notices the property was advertised for $1,400 and only approves that amount (which has only happened once in over 10 years), you still hit your projected rent target. But if it works, you’ve just increased your rental income by 17%.
Now imagine using this strategy across 10 properties—that’s a 15% to 20% rent increase portfolio-wide. Truly a game-changer.