The median household income in Beaufort, SC, is below the state average, with housing costs averaging around 30% of that amount. Around 19% of the city's residents earn an income below the poverty level, leaving many families unable to afford a decent home.
Section 8 housing assistance programs address this problem by paying a portion of these families' rent. Beaufort property owners can help in the fight against homelessness, subject to certain conditions, including whether their rent price meets certain rent reasonableness criteria.
Read on to discover how the HUD calculates fair rental rates to help you figure out if being a Section 8 landlord suits you.
What Is Section 8 Housing Assistance?
The Section 8 housing voucher program is a federal initiative to help those earning low incomes afford suitable accommodation. In Beaufort, the Beaufort Housing Authority oversees this program and a few other worthy community development initiatives.
Prospective tenants who want to apply for housing assistance must earn less than 80% of the median income for the city.
These residents qualify to receive housing assistance in the form of vouchers to pay some of their rent. They must pay the rest of the amount owed, which usually amounts to 30% of the total cost.
Candidates must apply for Section 8 housing via the BHA, and the organization attempts to match them with a home that suits their needs and affordability range.
Section 8 Rent Calculation Methodology
The BHA conducts a local area rental market analysis to set rent limits for Section 8 housing. They use the following aspects to calculate rent reasonableness:
- Location
- Size of the house
- Accommodation quality
- Age and type of home
- Onsite amenities
They also use data from the Public Housing Authority and Beaufort Chamber of Commerce to calculate a fair market rent (FMR) for the area. This amount is equal to a value common to the 40th percentile of standard-quality homes in the area.
The housing authority will pay between 90% and 110% of the FMR toward Section 8 housing recipients' rent. The amount depends on criteria specific to each area.
How to Become a Section 8 Landlord
If you've done a few calculations and realized your rent is affordable enough to sign up as a Section 8 landlord, you could benefit from this program in several ways.
The biggest benefit of being a Section 8 landlord is receiving 70% of your rent from the government every month on time.
Section 8 recipients usually make good tenants too. To retain their benefits, they must pay their portion of the rent on time and keep your property in good condition.
They're also more likely to renew their leases due to the scarcity of affordable housing in Beaufort, SC. You must still screen these tenants, as the Section 8 program only assesses them based on financial criteria.
Maximize Your Beaufort Rental Unit
Landlords should not underestimate the power of Section 8 housing to bring in substantial, reliable income for their rental units. This program usually provides access to reliable tenants and guarantees a percentage of your rental rate every month.
If the Section 8 rent reasonableness rates are acceptable to you, a property management firm can help you make the most of this opportunity.
Stinger Home Management can guide you through every stage of being a Section 8 landlord with integrity, accountability, and respect. We are a well-established property management firm with over a decade of experience.
Browse our blog for more Beaufort landlord tips or explore more profitable options for your South Carolina investment property.
