What is Section 8 for US real estate?

When one is interested in American real estate, it is common to see real estate advertisements at very competitive prices, not to say sold off. These opportunities in the USA correspond above all to housing in section 8 . What are these apartments and houses? And who are the tenants? What are the prospects for such a real estate investment? Housing assistance for tenants “Section 8” is a common name for the Choice Voucher program, funded by the US Department of Housing and Urban Development (HUD). It grew out of a Housing Act ratified in 1937 by the then government during the Great Depression. The U.S. Department of Housing and Urban Development (HUD) has many programs that help low-income families with housing costs . Section 8 deals with private housing , while public housing consists of entire government-sponsored housing developments. How was Section 8 born? In the 1970s, when studies showed that the worst housing problem affecting low-income people was no longer poor housing, but the high percentage of income spent on housing. Also, Congress passed the Housing and Community Development Act of 1974, further amending the US Housing Act. of 1937 to create the Section 8 program . How does the House Choice Voucher apply? In the Housing Choice Voucher program section 8 , tenants pay about 30% of their income for rent , while the rest of the rent is paid with federal funds. The Section 8 program initially had three sub-programs: new construction programs. substantial rehabilitation and existing housing certificate programs. Moderate rehabilitation programs. The number of housing units a local US housing authority can subsidize under its Article 8 programs is determined by congressional funding. Who is the Section 8 Housing Choice Voucher program for? On the tenant applicant side , the Section 8 program helps low-income tenants, seniors, and people with disabilities. They obtain decent and safe housing outside the public housing system. By using the Section 8 Housing Choice Voucher Program, tenants receive a housing voucher they can use for any qualifying apartment , townhouse , or private home. Thus, American residents who benefit from low and vulnerable incomes are financially assisted for the payment of their rent. What is the level of financial aid allocated? When you own an apartment or house in the United States whose tenant benefits from the Section 8 program, the local authority will determine its level of payment or the maximum amount it is willing to pay for each number of rooms. This payment standard will be between 90 and 110 percent of fair market rent. In most cases, the amount of the total rent for the tenant corresponds to 30% of his adjusted monthly income. The administration covers the remaining 70%. The Latest Section 8 Housing Rules The Section 8 program rules for a rental have changed. From now on, the tenant must have at least 2 people in each room , regardless of age or gender. This is a general rule set forth by the US Department of Housing and Urban Development. The Section 8 housing choice voucher on the property owner's side The phase of the approval of the American administration To start working with the Section 8 housing choice voucher program, landlords and tenants must receive approval from the local housing authority. Requirements to become a homeowner under Section 8 and tenant qualifications vary by region of the US. Approved applicants are placed on a waiting list unless accommodation is immediately available. For the private, apartment or home owner in the United States , the Section 8 program allows apartments and homes to be rented at fair market rates to low-income tenants, with a subsidy to the rent administered by Home Forward. The intervention of the housing administration Public housing agencies may give preference to families who are homeless, living in substandard housing, involuntarily displaced, or paying more than half their income in rent. Landlords, tenants and the public housing agency then enter into a contract that defines the roles and responsibilities of each of the parties involved. You can reach us from Monday to Friday at 04 42 12 11 00 The benefits and risks of leasing in Section 8 If you want to invest in real estate in the United States , it is essential to fully understand the issues of Section 8 housing choice voucher. As we mentioned above, the specifications relating to housing and its area are precise. We invite you to find in detail the advantages and disadvantages of an investment in Section 8 in our article Should you invest in Section 8?