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Section 8 Housing Real Estate Investors Cash Flow Tool for Realestate Investing.

Section 8 is a program setup by U.S. Housing and Urban Development HUD) to provide safe and sanitary housing to low-income individuals or families, the elderly, disabled or disadvantaged. Through issuance of Section 8 housing vouchers, HUD assists tenants by paying a portion of their rent.

In order to receive Section 8 benefits, individuals must undergo an application process through their local Public Housing Authority (PHA) office. Eligibility for Housing Choice Vouchers is based on the applicant's total annual gross income and family size. Gross income cannot exceed 50-percent of the median income in the area where the applicant is seeking assistance. However, by law, PHA is required to provide 75-percent of its Section 8 vouchers to applicants whose incomes do not exceed 30-percent of the median income.

There is generally a lengthy waiting process and in some cases can take up to one year or more to receive Section 8 approval. Once approval is obtained, PHA places applicants on a waiting list. When suitable housing becomes available, PHA issues a Section 8 Housing Choice Voucher.

Section 8 housing must pass inspection to ensure it meets housing quality standards established by HUD. Once the dwelling is approved, Section 8 housing vouchers are sent to landlords and the tenant pays the difference.

Participants in HUD's Section 8 program must be re-certified each year to determine changes in income and family dynamics. If a family member no longer resides with the applicant, or if death, divorce, or birth of a child has occurred, Section 8 benefits may increase, decrease or be eliminated.

Property owners can benefit from PHA benefits by applying to become a Section 8 landlord. The first step requires the landlord to complete a Request for Tenancy Approval form. Next, the property must pass inspection. Finally, the property owner must sign a Section 8 contract with their local Housing Authority office.

Section 8 landlords are required to provide appropriate access and egress from the property, electricity, heat, water and sufficient sanitation including a toilet, sink, bathtub or shower. The property must provide a kitchen, bathroom and at least one bedroom per two people.

Section 8 housing can consist of single-dwelling homes, apartments, condominiums and duplexes. Many property owners elect to become Section 8 landlords because it provides them with dependable cash flow. Research indicates Section 8 tenants tend to be better than average and oftentimes remain in property for several years.

Whether you are in need of Section 8 housing or wish to become a Section 8 landlord, there is an abundance of information available via the HUD website. Although the process can be complex and time-consuming, Section 8 Housing Choice Vouchers can help tenants obtain safe and suitable housing and provide landlords with long-term, quality tenants.