Sacramento Property Management

Sacramento Property Management Blog

All About Section 8 Housing Sacramento, CA

Alexandra Goldthwaite - Tuesday, August 24, 2021
Property Management Blog

Housing is for everyone! It is right there on the bottom of Maslow's hierarchy.

From single units to portions of entire multiple-building complexes, Section 8 assistance can benefit landlords. This component of the US Housing Act of 1927 (and its subsequent revisions) works towards the goal of housing for disadvantaged families and individuals.

For landowners and property managers, investing in Section 8 Housing in Sacramento is valuable to communities and their bottom lines.

What it takes to offer units to Section 8 eligible recipients and more is explained below.

Section 8 Housing in Sacramento

The bulk of Section 8 housing runs on the concept of a voucher system. These vouchers serve to fill in the gap between a tenant's income and the price of rent. 

Under Section 8, tenants must pay a minimum of 28.5% of their monthly income towards rent, and the voucher covers the rest. 

For landlords, this program keeps prices of rents steady by keeping a local economy working and churning. For renters, this allows them to afford a safe, secure place so they can focus on living.

Program Overview

The program has a long waiting list and only limited vouchers are offered. Families tend to stay on the system for years, so the amount of new recipients is small. 

Prospective Section 8 applicants qualify based on disability, low income, and age. Despite the vouchers covering a portion of the rent, applicants also need to show proof of income and have a stable renting history.

Recipients lose benefits if they miss rent payments or fail to report income. 

Applying Vouchers

For landlords, two types of vouchers (out of four) apply. 

These are the Tenant-Based Housing Choice Voucher (HCV) and the Project-Based Voucher (PBV). Both of these work the same from a monetary compensation perspective, but they are applied differently.

The HCV type of voucher moves with the family or individual. It allows them to select housing that fits their needs and also qualifies (on the property's side) for the program. 

The PBV type applies to units within a project. These function through a public housing agency (PHA), local organizations tasked with the administration of the day-to-day Section 8 housing.

Landlord Requirements

The biggest difference between these two voucher types for landlords is options and contracts. 

Both require an inspection by the PHA to ensure that each unit is up to standards of cleanliness and security for Section 8. 

Contracts for PBV go as long as 20 years and feature renewal options after that. HCV vouchers start with one-year leases with month-to-month options after.

In both cases, payment comes one part from the tenant and the other part from the PHA. With the PBV type, a project forms an agreement that reserves up to 25% of rental spaces for voucher holders. 

Rent negotiations happen between the landlord and the PHA, with restrictions on how much can be charged based on the area, offerings, and the like. 

Management Made Easy

As you see, some red tape is required, but overall, Section 8 housing in Sacramento means more renters for landlords and safe living for tenants.

If you want to get started in certifying a property for Section 89 eligibility, contact us and learn what you need to do and how we can help make property management easy.