There is a growing need for affordable housing throughout North Carolina, including Charlotte. That need could be a good opportunity for new or established real estate investors in the state. With programs like Section 8 funded by the federal government, more people can get a home to live in and raise a family.

If you want to invest in property and are considering affordable housing, read on. Learn what to expect when you invest in Section 8 real estate. 

What is Section 8 Property?

Section 8 is a housing program funded by the Department of Housing and Urban Development. It helps low-income families afford a home. HUD pays a portion of the rent each month through vouchers, and the tenant pays the rest to the property owner or landlord.

Section 8 property can be an apartment complex, townhome, single-family home, or a duplex. 

How Do I Become a Section 8 Landlord?

If you think managing properties as part of a Section 8 program is the right choice, there is an application process with your local public housing authority (PHA). You will provide the property's address along with the proposed rental rate, the term of a lease, and the utilities included in the rent. 

The PHA will review your application and inspect the property to ensure it meets local safety and health codes. The PHA may also require you to lower the rent on the property if they believe it is too high for the market. Once approved, you can start the process of screening tenants.

What Are the Benefits?

Most people who choose to participate in the Section 8 program do so because most of the rent is guaranteed by HUD. It's easier to manage cash flow each month when the government pays the rent vouchers. 

Section 8 housing is also rented quickly, and the vacancy rate is very low. In areas like Charlotte, where there is a significant need for housing, your properties will likely stay filled. 

Are There Downsides?

Renting property through Section 8 does present some challenges. You will have to submit to annual inspections to ensure the property is up to code. You may want to consider a property management service to keep your properties updated.

Some landlords experience issues with problem tenants. One way to mitigate these problems is with a tenant screening program to ensure quality renters. We can help you find the best possible tenants for your properties.

A New Investment Opportunity

If you are ready to begin or expand your rental property portfolio, Section 8 housing might be a good fit. Demand in North Carolina is high, and the federal government guarantees some or all of the tenants' rent.

It's essential to understand the pros and cons of renting property through a federally-funded program. Take time to learn about the specific requirements to ensure it's the right fit for you. If you work with an experienced property management company, you can ensure your properties meet the criteria to participate and provide affordable housing to families in Charlotte. 

To learn more about property management and investment, contact us today.