You.
Why is it that well intending government programs always seem to take casualties with them? Section
8 is a governmental program that sets out to help families in need by giving qualified families rental
vouchers.
However, the impact of the voucher doesn’t stop with the benefitting family.
You, the Real Estate Investor.
You, the Section 8 tenant.
You, the Average Joe Renter.
You, the Section 8 wannabe.
You, the Neighbor of the Section 8 tenant.
You, the first time home buyer.
You, are affected.
As a Real Estate investor, you suddenly have a great pool of renters to pull from…Section 8 renters. You
are able to rent out properties with leveraged rental prices (and without having to market) to Section 8
tenants, with these tenants generous vouchers.
Being a recipient of Section 8 yourself, you have no limits. As long as you still meet the requirements,
the check and the properties are all yours. Sometimes, you even land real estate nicer than regular
renters.
And then there’s you, Average Joe. You are looking for a place to rent, but all the prices seem to be
above market value. That’s because Section 8 pays out market priced vouchers that encourage the
driving up of rental prices. Sorry.
Because of the budget HUD receives for this program, only so many people can receive vouchers. And, if
you signed up after the money ran out… it seems that you are just out of luck.
You, the Neighbor. You are who I really feel for. Because it is illegal to ban Section 8 from your
neighborhood, you are seeing Section 8 renters move into your neighborhood – and, the sad part is
that most of the time, the Landlord is just looking for money. Therefore, people who don’t care if the
property gets destroyed, and it is bringing down the value of your home.
Finally, you, the first time home buyer. You’re probably frustrated. You went to the bank to get financing
and found out that most of the foreclosed homes have been snatched up, just to rent out to Section 8
tenants.
All, you want is a new house.
Source: http://www.abc15.com/dpp/marketplace/law_tv/section-8-destroying-home-values-driving-up-rentals
By Sarah Cox