This isn’t political — it’s math. Curious what other landlords are seeing in 2026.👇

Section 8 in 2026: What Really Changed (And What Didn’t)

For years, landlords and investors were warned to “watch out for 2026” when it came to Section 8 housing. With major HUD funding cuts announced, many of us expected dramatic changes — fewer vouchers, collapsing rents, or sweeping reforms. Now that 2026 is here, the reality looks very different. The changes didn’t arrive with a bang. Instead, they came quietly, through tighter math, staffing cuts, and subtle shifts that landlords are feeling on the ground.

I’m Monique Burns, a Detroit real estate broker and investor. My husband Pat and I have been buying and holding rental properties in Detroit since 2007. We’ve flipped roughly 300 houses, managed large Section 8 portfolios, and worked with investors from all over the country and the world. Most of our long-term experience has been with Section 8 tenants — and what we’re seeing now is not collapse, but contraction.

If you’d like to flip a house with us or buy or sell a Detroit rental, please email me at Monique@GreatDayPM.com

The 45% HUD Funding Cut: What It Actually Meant

One of the biggest misunderstandings going into 2026 was the widely repeated claim that HUD cut Section 8 tenant funding by 45%. That is not what happened.

HUD reduced the funding it sends to the state of Michigan by roughly 45%. The money going directly to Section 8 voucher holders was reduced only slightly, not anywhere near that level. However, that state-level cut created real consequences. Michigan’s housing authority had to “clean up” operations, which meant staff reductions and service slowdowns across local Section 8 offices.

Landlords are now experiencing what that looks like in real life: slower responses, fewer caseworkers, and less flexibility than before. Section 8 service levels were never great, but they are noticeably worse today.

How Michigan Backfilled the Funding Gap

Many of us assumed Michigan would be forced to choose between priorities — most likely roads versus housing assistance. Michigan voters care deeply about infrastructure, and anyone who drives here understands why. Potholes are a way of life.

Instead of forcing that decision, Michigan backfilled the HUD shortfall by issuing a $75 million bond through the state housing authority. That avoided an immediate crisis, but bonds don’t create free money. They create debt, and debt adds pressure elsewhere in the system.

Meanwhile, road funding is being addressed separately through higher gas taxes and proposed increases to marijuana taxes. Section 8 wasn’t eliminated — it was quietly stabilized, with tradeoffs.

The Real Section 8 Rent Numbers in 2026

This is where landlords need to pay close attention.

Pre-COVID, I rented three-bedroom houses in Detroit for around $825 per month — slightly above market at the time. During COVID, rents exploded. Three-bedroom homes jumped into the $1,400–$1,500 range, and many landlords became accustomed to those numbers.

That era is over.

In 2026, if you are specifically seeking a Section 8 tenant for a three-bedroom rental in Detroit, realistic rent expectations are now closer to $1,200–$1,250 per month — and many vouchers are lower than that. Some landlords are being told at renewal that if they want to keep their existing tenant, they must accept a reduced rent closer to current voucher limits.

Claims that Section 8 tenants can routinely support $1,700 or $1,800 rents in Detroit are simply not grounded in reality.

Why Cash Tenants Are Looking Better Again

An important shift is happening: cash-paying tenants are becoming more competitive.

On a well-renovated three-bedroom home, cash tenants can often support rents around $1,300 per month. That’s slightly higher than many Section 8 approvals, with fewer inspections, less paperwork, and fewer delays. Cash tenants only require city inspections, which are generally easier and less costly than Section 8 inspections.

This doesn’t mean landlords should reject Section 8 — it’s illegal to discriminate based on voucher status — but it does mean the math is no longer overwhelmingly in Section 8’s favor.

Fewer Vouchers, Fewer Applicants

Another major difference from pre-COVID years is applicant volume. When I ran a property management company, my phone rang nonstop with Section 8 applicants. Investors specifically requested voucher tenants, and landlords could be selective.

That’s no longer the case.

There are fewer new vouchers being issued, and many existing voucher holders can’t afford to move. When tenants do move, their vouchers are often recalculated, and their personal rent portion increases significantly. Tenants who once qualified for $1,300–$1,500 rents are now being told to find housing closer to $1,200 — while paying a much larger share themselves.

This has been a difficult adjustment for many households.

The Two-Year Section 8 Myth

Another rumor that circulated heavily was the idea of limiting Section 8 assistance to two years. In practice, that concept applied more to SNAP benefits than to housing vouchers.

From the front lines, this idea never made sense. Many tenants are already earning as much as they reasonably can. Training programs help some people, but not everyone is trainable, and minimum wage remains far from a livable wage. Expecting families to bridge that gap in two years was unrealistic, and for now, that proposal is not being pushed for housing.

A Quiet Reform, Not a Crisis

The biggest takeaway from 2026 is this: Section 8 did not collapse. It didn’t radically reform either. Instead, it quietly tightened.

Rents normalized. Vouchers shrank. Tenant portions increased. Staffing decreased. And landlords adjusted.

I’m still open to Section 8 tenants. I simply take the first, most qualified applicant — voucher or cash — and that approach is working well. There are more solid cash tenants than there were a few years ago, and Section 8 remains viable, just not as lucrative or abundant as it once was.

This isn’t political. It’s math. And understanding that reality is what allows landlords and investors to make smart decisions in Detroit’s evolving rental market.