Section 8? Your thoughts?

Q: I've heard a lot about the government Section 8 housing program. Can you tell me a little more about this? Is it worth participating?

A: Section 8 is a government program by the Dept. of Housing and Urban Development (HUD). This program is administered by the Housing Authority of Santa Clara County (for those of us in Santa Clara county obviously). The short explanation is that low/no income persons get subsidized housing vouchers and have to pay very little to no money out of pocket. The size of the grant is determined by income and the # of people on the voucher. The subsidized portion is guaranteed.

Ex. Rent is $1500, gov't subsidizes $1300, and tenant pays $200. So in theory, it shouldn't be too hard for a tenant to come up with $200 a month and the $1300 is guaranteed.

So why is this bad? Without stereotyping, just think about the kind of persons that do not have jobs or very much money, they are good people but not all of them will be very good tenants. I do section 8 all the time and have been doing so for over a decade. My advice to you is that a section 8 tenant probably takes MORE work. The upside is the guaranteed rent or if you really need to find a tenant. There are more rules/regulations but that's a real basic overview. Be happy to provide more information.