Folsom Property Management Blog

How to Become a Section 8 Landlord in California

How to Become a Section 8 Landlord in California

Did you know in 2020 there were 161,548 homeless people living in California? Section 8 programs are available to help lower-income families and individuals. These programs assist those looking for a clean and safe place to live, the problem is there is a long waitlist. 

Becoming a Section 8 landlord will not only help people in need but will give you peace of mind knowing you will be receiving income every month. If you are interested in starting or expanding your investment portfolio continue reading. 

Section 8: What to Know

Section 8 programs receive money from the U.S. Department of Housing and Urban Development to pay landlords to provide housing for lower-income families. While the programs pay the landlord, the tenants will pay a predetermined rent amount. The amount tenants pay is determined by their income and is usually 30% of their monthly income. 

As a landlord, you will be responsible for screening and approving your tenants but the programs have partially vetted them and approved them for the program. The program will not select tenants for you.

Pros and Cons 

Section 8 in California will ensure you have constant income coming in. Your tenants will pay rent but even if they don't pay on time you will be receiving the money the program has agreed to pay you. Your tenants are low income so their portion of the rent may not be as constant. 

There is high demand for Section 8 housing, many people are on a waitlist, so you don't have to worry about finding tenants. With every investment property, whether it's Section 8 or not there is a chance your personality will clash with your renters.

In your job as a landlord, you will be responsible for keeping things professional and resolving issues quickly. Your property will also have an inspection once a year and you could lose government funding if you haven't maintained property standards. 

Maintaining those standards and keeping communication with your tenants can be challenging, especially if you have multiple properties. It could be beneficial to have someone help with rent collection, tenant screening, marketing, and even maintenance.   

The Rental Process 

There is some extra paperwork with becoming a Section 8 landlord. You will need to fill out an application with your local housing authority. Sacramento county has lots of resources and will help you with your application.  

Once you find tenants and they have been reviewed and approved, your local public housing agency will come for an inspection. Remember to follow all their requests, they may ask you to be present during the inspection.

After the inspection has passed, you and the agency will agree on the rent. After that, the tenants are ready to move in. 

Start Today 

California has a large population of low-income families and a lot of homelessness. Property investment through Section 8 is a great option. There are lots of benefits and if you need help getting started or are looking for a management company contact us, we are happy to help.