3 Emerging Trends in Section 8 That Every Landlord Investor Should be Aware of

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Here’s a summary of Monique Burns' video “3 Emerging Trends in Section 8 That Every Landlord Investor Should be Aware of” in 10 key bullet points:

  1. Section 8 Funding Gaps: MSHDA (Michigan State Housing Development Authority) hasn't issued new vouchers in over a year due to funding delays, leading to fewer new Section 8 tenants in Detroit.

  2. Declining Tenant Quality: Many available tenants now have eviction histories from the COVID era, making it harder to find reliable renters with clean records.

  3. Rent Pricing by Zip Code: HUD introduced a zip code-based rent system in Detroit, which has caused inconsistencies—some high-demand areas are now assigned below-market rents.

  4. City Housing Commissions Paying More: Housing commissions named after cities (e.g., “Dearborn Housing Commission”) often now offer higher rents than MSHDA or Detroit Housing Commission vouchers.

  5. Unreliable Zip Code Strategy: Trying to invest only in high-paying zip codes is unreliable because actual rent depends on which housing authority issues the tenant’s voucher.

  6. Intense Competition for Tenants: Landlords are offering move-in perks like appliances and waiving security deposits to attract tenants, reflecting fierce competition.

  7. Uncapped Property Taxes: Buyers must be aware that property taxes can triple after purchase due to reassessment—ask for “uncapped” tax estimates, not just current seller rates.

  8. Tenants Switching Houses Last-Minute: Section 8 tenants can switch properties after the first or even second inspection, leaving landlords without notice or compensation.

  9. No Landlord Protection in Cancellations: Housing commissions view the tenant—not the landlord—as the client, so landlords aren’t informed when tenants back out.

  10. Mixed Strategy Suggested: Given the instability, landlords should consider accepting both Section 8 and market-rate tenants to maximize occupancy and income.