A Comprehensive Guide to Becoming a Section 8 Landlord in Pennsylvania

What is Section 8 Housing?

Section 8, also known as the Housing Choice Voucher Program, is a federal affordable housing initiative administered by the Department of Housing and Urban Development (HUD). It offers suitable housing options to low-income families, individuals, the elderly, and disabled individuals in various counties and metro areas across the United States.

Eligible rental units can include multi-family subsidized housing, townhomes, condos, and single-family homes. To participate in the program, landlords must go through an approval process with their local housing authority. Qualified applicants can then select their desired rental housing unit, provided they meet the income and eligibility requirements of the housing assistance program.

Here are the necessary steps to be completed with your local Housing Authority:

Attend a Landlord Briefing: Attendance at a free PHA/HCV Landlord Briefing is mandatory for first-time program participants. These briefings are currently conducted virtually, and you can register for a spot on the Housing Authority's website.
Complete Owner Certification Training: Register for the free and mandatory HCV Owner Certification Training. This training familiarizes landlords with the program's rules and responsibilities, providing practical advice for successful participation. Due to the pandemic, the training is conducted virtually, and registration is available on the Housing Authority's website. Failure to complete this training is considered non-compliance with the Housing Choice Voucher Program.
Prepare Documents: Gather all required documentation specified by the Housing Authority, including but not limited to:

Rental license
Deed of record
Landlord's photo ID
W-9 form
Direct deposit form
Proof of current property taxes
Evidence of current utilities
Agent authorization form (for professionally managed properties)
Owner/agent contract (for professionally managed properties)
Agreement to accept direct deposit payments (for professionally managed properties)

List the Property: Once your property has been marketed, applicants have been screened, and you've chosen a tenant, it's time to proceed with inspections and lease agreements. Follow these steps:

Complete an application and have the rental rates approved.
Schedule a property inspection with a PHA inspector for approval.
List the property in the Section 8 database and complete a lease agreement.

Pros of Being a Section 8 Landlord:

Consistent Rent Payments: Since the government subsidizes the rental, landlords receive all or part of the rent each month. Section 8 tenants have an incentive to pay their share promptly, as failure to do so could result in losing their vouchers.
Pre-Screened Tenants: Section 8 tenants undergo a pre-screening process conducted by the government. This process includes criminal background checks, drug testing, and income verification. While it shouldn't replace a landlord's own screening, it provides an additional layer of assurance.
Increased Listing Exposure: There is a substantial database of tenants in Pennsylvania actively seeking Section 8 properties. Free websites offered by HUD and local Housing Authorities help landlords reduce marketing costs and reach a broader pool of applicants.
Lower Vacancy Rates: Due to a shortage of suitable Section 8 housing, vacancies tend to fill quickly. Tenants who find a suitable rental home are more likely to stay, reducing turnover costs for landlords.

Cons of Being a Section 8 Landlord:

Rent Price Caps: HUD determines the maximum allowable rent based on various factors. Landlords must be aware that their listing price may be subject to adjustment if it exceeds HUD's maximum rent for the area.
Delay in First Month's Rent: Unlike traditional rentals, Section 8 tenants' first month's rent is paid to the landlord after they move in. This difference may require landlords to financially sustain the property until the rent payment arrives.
Property Inspections: To participate in the Section 8 program, landlords must undergo routine property inspections to ensure tenant safety. Some landlords may find these inspections and associated regulations burdensome.

To maximize your success as a Section 8 landlord, consider the following tips:

Know Your Location: Research the local market carefully to determine if your rental property is suitable for Section 8 tenants. Properties in low to moderate-income areas are typically more compatible with subsidized housing.
Follow Federal and State Laws: Comply with state and federal Fair Housing Laws and maintain minimum compliance and upkeep standards for your property. This practice is crucial regardless of whether you rent to Section 8 or market-rate tenants.
Thorough Tenant Screening: Develop a set of rental qualifications and apply them consistently to all applicants. Ensure your screening process includes background checks, income verification, rental history, and credit checks. These steps are essential for Fair Housing Law compliance.
Consider Professional Assistance: Managing a property, especially one involving subsidized housing, can be time-consuming and challenging. Engaging a qualified professional management company, like Rentwell Property Management, can alleviate the administrative burden and provide peace of mind.

If you own a rental property in any PA county (Montgomery, Delaware, Chester, Bucks, etc.), Rentwell Property Management can handle all the Section 8 paperwork, allowing you to focus on growing your investment. Contact us today to learn how we can assist you or schedule a consultation below!

How to Become a Section 8 Landlord in PA