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Section 8 Housing

Real Estate Terms

Definition

A federal housing assistance program where the government subsidizes rent payments for qualifying low-income tenants.

Section 8, officially known as the Housing Choice Voucher Program, is administered by local public housing authorities and provides rental assistance to low-income families, the elderly, and disabled individuals. The government pays a portion of the rent directly to the landlord, with the tenant paying the difference. For investors, Section 8 offers guaranteed partial rent payments, reduced vacancy risk, and access to a large pool of tenants. Properties must pass housing quality standards inspections, and rent amounts are capped by fair market rent limits in each area. Some investors build entire portfolios around Section 8, attracted by the reliable government-backed income stream.

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