Converting Traditional Rentals to Section 8: A Guide

Many investors find that converting their existing market-rate rentals to Section 8 significantly improves their cash flow and stability. Here is how to make the transition successfully.

Step 1: Conduct a Self-Inspection

Before you ever contact the housing authority, you must ensure the property can pass an HQS inspection. Fix any peeling paint, ensure all outlets have covers, and check that every window and door locks correctly. Being proactive here saves you from multiple inspection visits and delayed rent.

Step 2: Research the Payment Standards

Check the current Fair Market Rents for your property's zip code. You might be surprised to find that the Section 8 payment standard is higher than what you are currently getting from market-rate tenants. This is the main financial driver for the conversion.

Step 3: Market to Voucher Holders

When you have a vacancy, list the property on sites like affordablehousing.com and mention that you are "Section 8 friendly." You will likely receive an influx of applications. Follow your standard screening process to find the best fit.

Step 4: Submit the RTA

Once you have a tenant, you will fill out a "Request for Tenancy Approval" form. This starts the official process with the PHA. After the inspection is passed and the lease is signed, the government payments will start. While there might be a small lag in the first payment, it is usually retroactive, and the long-term stability is well worth the initial effort.