Investors - Landmark Group: Omaha Nebraska (NE) Property Management, Real Estate, Homes For Sale, Homes for Rent

What is Section 8?

Established in 1974, the Choice Voucher (HCV) program (often times referred to as section 8) from the Department of Housing and Urban Development (HUD). It is voucher based. meaning the tenant can take the voucher with them where ever they move so long as the landlord accepts the voucher. It is also an entitlement program meaning that once a tenant qualifies for it and does not violate any of the rules it can not be taken away from them. The Present value of the average Section 8 voucher is estimated to be $160,000. The section 8 program in Omaha MSA is administered by:

Omaha Housing Authority (They have 4200 vouchers)
Douglas County Housing Authority
Southern Iowa Regional Housing Authority
Bellevue Housing Authority
Sarpy Country Housing Authority

What are the advantages of Section 8?

Most the rent comes for the government
The tenant’s rent is right sized with there income. Meaning they pay no more than 30 % of there income on the rent.
Under the program guidelines the unit has to be inspected at least once a year
It is a good way to make sure your rental property is kept in good repair.
The housing authority requires tenants to have good house keeping to keep their voucher
Landmarks experience has been that the tenants stay on average 4.3 years.

What are the disadvantages of Section 8?

As with any federal program there is a lot of paperwork
You are required to make the repairs that the section 8 inspectors want. If you do not make the repairs they will require the tenant to move
After a tenant fist moves in, it can take up to four months to get your rent from the housing authority. The first payment is retroactive and the tenant is required to pay during this time

Section 8 Program