In 2024, the federal government set aside $32.8 billion toward the housing choice voucher program, also known as Section 8 housing. This program is administered by the Department of Housing and Urban Development and managed by local public housing authorities across the country.
The HCV program provides qualifying households with vouchers they can use for paying rent in privately owned accommodation. Landlords who make their homes available to this program receive a major portion of their rent in Section 8 housing vouchers.
This guarantees the landlord an income for the duration of the lease. Read on to learn more about Section 8 and whether it's a good fit for your Irvine investment property.
Types of Section 8 Housing Assistance in Irvine
Orange County offers two types of housing assistance under Section 8:
Housing Choice Vouchers
Under the HCV program, landlords sign a lease with the Section 8 tenant directly. The lease applies to one home only.
Project-Based Vouchers
Under this program, the Orange County Housing Authority signs a contract with a landlord. This usually involves a specified number of units over a specific time frame.
Applying for Section 8 Housing
Recipients of Section 8 housing vouchers have free choice when it comes to where they live. They can choose from any housing that meets the requirements of the program, including:
- Single-family homes
- Townhouses
- Apartments
Those who wish to apply for Section 8 housing can contact the Orange County Housing Authority (OCHA) and join the waitlist.
Section 8 Eligibility Criteria
Subject to certain income limits, seniors, people with disabilities, and low-income families can access Section 8 vouchers.
Landlords who want to make their homes available for the program must agree to routine property inspections and charge a reasonable rent in line with the PHA payment standard.
Benefits of Section 8 Housing for Landlords
The benefits of Section 8 housing for tenants are obvious. It allows them the dignity of occupying decent accommodations at a price they can afford, helping alleviate homelessness in Irvine, CA.
The program also has several benefits for landlords. When they accommodate Section 8 tenants, landlords are guaranteed that at least 70% of their rental is paid on time every month.
Section 8 tenants must comply with certain rules to remain a part of the program. They must:
- Pay a security deposit
- Pay rent on time every month
- Follow the terms of the lease
Additionally, they must request approval for new roommates and may not accommodate guests for more than two weeks at a time. These rules make them good tenants and likely to renew their leases, too.
It's still advisable for landlords to conduct their usual tenant screening procedures for these tenants.
Getting on Board with Affordable Housing in Irvine
The Section 8 HCV program is a worthy initiative aimed at reducing homelessness in Irvine, but it also offers benefits for participating landlords. If you're an Irvine property investor who would like to sign up as a housing provider, it's best to get expert help to guide you through the process.
PMI Orange County can help you thrash out the pros and cons of being a Section 8 landlord and assist you with calculating a reasonable rent for your Section 8 tenants. Our priority is always to preserve the value of your property and safeguard your profits, and we are well-placed to help you make the right decisions.
Reach out for guidance with every aspect of managing your Irvine investment properties.
