The need for affordable housing continues to grow, especially in the Tampa area. While rent isn't necessarily cheap in the city, Tampa was one of 10 large cities that saw a major decline in rental prices. One of the ways renters can make their rental payments more affordable is by applying for Section 8.
Are you looking for more information on how Section 8 determines how much it'll pay for your rent? This blog will talk about Section 8 eligibility and how the organization decides if your rent is reasonable.
How Section 8 Determines Rent Reasonableness
Rent reasonableness means ensuring that a rental unit that's supported by grant funding isn't more expensive than a unit that isn't. When rental assistance funds are used to pay for rent, the amount paid needs to be reasonable to similar units.
Factors Considered When Determining Rent Reasonableness
The U.S. Department of Housing and Urban Development (HUD) determines Fair Market Rent for different areas of the country annually. They review several factors when creating this number:
- Units rented in that area
- Size of unit
- Location within Tampa Bay
- Features, amenities, and new updates
- Local market conditions
- Construction date
- Property condition
HUD looks at two-bedroom homes when setting the standard for Fair Market Rent.
Reviewing Rent Reasonableness for Section 8
There are a few times when the Public Housing Authority may want to review your rental units. They look at your rent reasonableness more times than you may think.
These times may include:
- When a Section 8 landlord wants to increase their tenant's rent
- When a landlord wants to apply for Section 8 for their unit
- When the Public Housing Authority feels it's necessary
- When a Section 8 tenant's lease is up for renewal
Consequences of Unreasonable Rent
Your unit will only be eligible to rent to a Section 8 tenant if it's determined your rent is reasonable. If the rent is unreasonable, landlords won't be able to collect housing vouchers for their units, even if their tenant wants to pay more out of their pocket. The tenant will have to start looking for a unit that qualifies for the program.
Setting a Reasonable Rent: Tips for Landlords
There are a few ways landlords can better prepare to be evaluated by the Public Housing Authority. Some of our top tips include:
- Maintaining your property's amenities and quality
- Researching the local market trends in your area
- Being open to different negotiations
- Work with the Public Housing Authority
Landlords who want to rent their units below or at the average rental rate in Tampa would benefit from applying to be part of the Section 8 program.
Get Help With Affordable Housing Programs From a Property Management Company
Having Section 8 units is a great way to apply to a wide range of tenants. Ensure that the rental price of your unit is reasonable by knowing the criteria to qualify beforehand. An experienced property management company in Tampa can help you with the process.
The property managers at PMI Tampa Bay are available to help you explore Section 8 eligibility. We offer a wide range of services, including tenant screening, property marketing, and more. Contact our office to schedule a consultation to discuss Section 8 benefits for landlords.
