1
The Household
The household applies through a PHA and, if selected and eligible, may receive a Housing Choice Voucher.
The household then searches for a rental unit that the landlord is willing to offer through the program.
Section 8 Landlord Blueprint • Lesson 1
How does Section 8 actually work?
What most people call Section 8 is the Housing Choice Voucher program. It connects three parties: an eligible household, a private landlord and a local Public Housing Agency.
The voucher helps the household pay for approved housing.
It does not eliminate the lease, landlord responsibilities,
property requirements or investment economics.
The Basic Structure
Three parties make the Housing Choice Voucher program work.
Each party has a different role. Understanding those roles makes the rest of the program much easier to follow.
2
The Landlord
The landlord owns or manages the property and decides whether to rent the unit to the applicant, subject to applicable laws.
The landlord still operates the property, maintains it and performs ordinary landlord responsibilities.
3
The PHA
The Public Housing Agency administers the voucher program locally.
It verifies program requirements, reviews the tenancy, evaluates the proposed rent, handles inspections and makes the applicable housing assistance payment.
The Street Smart 7-Step Explanation
From voucher to landlord payment.
Local procedures can vary, but this gives you the basic structure of a typical Housing Choice Voucher lease-up.
1
Voucher
An eligible household receives a voucher from its PHA.
2
Housing Search
The household searches for a rental unit.
3
Landlord
A landlord agrees to consider the household and property for the program.
4
RFTA
The tenant and landlord complete the Request for Tenancy Approval process.
5
PHA Review
The PHA reviews the unit, proposed rent and applicable program requirements.
6
Approval
The property and rent must satisfy the applicable requirements.
7
Lease & HAP
The tenancy begins with the lease and Housing Assistance Payments contract.
One Important Form
The Request for Tenancy Approval starts the property review.
Once a voucher household finds a potential unit, the landlord and household generally provide information to the PHA through the Request for Tenancy Approval process.
A
Property Information
The process identifies the rental unit, bedroom count and other property information.
$
Proposed Rent
The landlord identifies the proposed rent and information about utilities and appliances.
PHA
PHA Review
The housing authority uses the submitted information to begin the tenancy-approval process.
One of the Most Important Lessons
Payment standard is not automatically your approved rent.
A payment standard is used in calculating voucher assistance. The proposed landlord rent still has to satisfy the PHA's rent-reasonableness requirements.
Payment Standard
The PHA establishes payment standards used in the subsidy calculation.
Proposed Rent
The landlord proposes a rent for the actual rental unit.
Rent Reasonableness
The PHA compares the proposed rent with comparable unassisted units before approving it.
Street Smart Investor Rule
Never buy a property because you saw a payment-standard chart
and assumed that number would automatically become your monthly rent.
Research the actual property, local market,
current PHA rules and rent-reasonableness process.
Follow the Money
Who actually pays the landlord?
Depending on the household's calculated responsibility, the landlord may receive money from both the tenant and the PHA.
Tenant
Pays the tenant's required portion of rent to the landlord.
→
Landlord
Receives the approved rent through the applicable tenant payment and housing assistance payment.
←
PHA
Makes the Housing Assistance Payment directly to the landlord under the HAP contract.
Important
The amount paid by the PHA and the amount paid by the household
depend on program calculations and the circumstances of the tenancy.
Do not assume that every voucher tenant pays the same percentage
or that the PHA always pays the entire rent.
Two Different Agreements
The lease and the HAP contract are not the same document.
L
Lease
The lease governs the landlord-tenant rental relationship, together with applicable law and the required tenancy addendum.
H
HAP Contract
The Housing Assistance Payments contract is between the landlord and the PHA and governs the housing assistance payments.
Know the paperwork
The Housing Choice Voucher tenancy uses both the ordinary landlord-tenant
relationship and the separate relationship between the landlord
and the housing authority.
Vocabulary
Learn these six terms first.
HCV
Housing Choice Voucher.
PHA
Public Housing Agency.
RFTA
Request for Tenancy Approval.
HAP
Housing Assistance Payment.
Payment Standard
A PHA figure used in calculating voucher assistance.
Rent Reasonableness
The PHA's comparison of proposed rent with comparable unassisted rental units.
What Does Not Change
Section 8 does not remove the ordinary realities of owning rental property.
1
Maintenance
The property still needs repairs and ongoing maintenance.
2
Management
The landlord still needs operating and communication systems.
3
Expenses
Taxes, insurance, repairs and other property costs still exist.
4
Risk
Real estate still involves financial and operational risk.
Street Smart Perspective
Learn the housing program and the real-estate business.
Understanding the voucher program tells you how the tenancy works. It does not tell you whether a particular property is a good investment.
P
Program
Understand PHA requirements, payment standards, inspections and contracts.
RE
Real Estate
Understand property condition, market rent, neighborhood and acquisition price.
$
Economics
Understand expenses, financing, reserves and actual cash flow.
Section 8 Landlord Workbook
Turn the lessons into a repeatable process.
The SSBS Section 8 Landlord Workbook gives you a structured place to organize the information you collect as you evaluate a market and property.
$197Fillable digital workbook.
Ask Luna
Have a Section 8 question?
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Continue the Section 8 Curriculum
This is only the first lesson.
The Section 8 Landlord Blueprint will break the program into individual lessons so you can learn one subject at a time.
Landlord Requirements
What the landlord needs to understand before participating.
Property Inspections
Learn the role property standards and inspections play.
Rent & Payment Standards
Learn how payment standards, utilities and rent reasonableness interact.
SAFMR
Understand Small Area Fair Market Rents.
Finding Properties
Learn to search for properties based on investment economics.
Property Cash Flow
Learn to analyze income, expenses, financing and acquisition price.
Street Smart Business School
Where do you want to go next?
Section 8 Landlord Hub
Return to the main Section 8 Landlord Blueprint.
Street Smart Real Estate
Return to the main SSBS Real Estate department.
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Lesson One Complete
First understand how the program works. Then analyze the property.
The next lesson will deal with the landlord side: what you need to know and what the PHA generally expects from you.