5 Reasons Why Section 8 Rental Properties Make Good Sense

5 Reasons Why Section 8 Rental Properties Make Good Sense


“Formal education will make you a living; self-education will make you a fortune.” – Jim Rohn


Hi Readers!

For those of you who have already bought rental properties or who might be contemplating it, I’m sure the idea of setting up Section 8 housing or not has crossed your mind at some point.  If not, it might be something worth considering. 

I recently became acquainted with a young woman and her husband who have built a nice portfolio of Section 8 housing and she also coaches others on it.  So, I thought it would be nice to have her give you her take on why she thinks it’s a great strategy for buy and hold investing.  Her name is Jennifer Donley and she is our contributing writer this week for our feature story.

Some of the things we’ve been working on at Rock The Real Estate are ways we can become more beneficial to our subscribers who are serious about real estate and looking to build businesses.  

To that end, we will be introducing some new things coming up in the near future but what’s happened recently is that we have partnered with a legitimate lender (which seem to be hard to find these days) that works with people who may have trouble going through “traditional” means of funding for their deals.  Below I’ve outlined a few things that they do and given you a way to reach out.  

As always, I’ve got an “inspirational” message for you this week to hopefully help you stay mentally strong to do what you need to do to live your best life!
So, without further adieu, let’s dive in and…


Lena W. Claybon

Feature Story

5 Reasons Why Section 8 Rental Properties Make Good Sense

By: Jennifer Donley, Contributing Writer

Everything bad you’ve heard about Section 8 rental properties is wrong. Well, most of it anyway.

If done right, I believe Section 8 rental properties are one of the most stable & profitable real estate investing niches out there. That’s especially true now that the pandemic has prompted local and national governments to ban evictions.

So, why is going Section 8 a good bet? There are 5 main reasons.

1. Guaranteed Rent. You’ll see this listed everywhere as a huge benefit of Section 8.  In most States, 80% of Section 8 income comes directly from the government and gets deposited into your bank account on the first of the month.  You don’t have to chase rent which is a HUGE plus.

2. Higher Rents*. In certain areas & instances, you can get more in rent than you would from a market tenant. This is dependent on a lot of factors, such as what asset class you’re investing in, how your local Section 8 office sets rents and what the Fair Market Rent is according to HUD for your local market. It can also depend on the landlord’s understanding and ability to maximize the Section 8 processes in their area. 

3. Long Tenancies. Any seasoned landlord will tell you that you want good tenants who stay a long time because tenant turnover is the most expensive part of the landlord business. Good news here – Section 8 tenants tend to stay longer for a variety of reasons (especially if you have a quality unit for them – see below), improving cash flow through reduced turnover costs.

I’ve never heard anyone else talk about these last 2 reasons but I believe they’re what really make the Section 8 niche one of the best ways to achieve financial freedom through real estate.

4. Section 8 Rules. As in, there’s a lot of them. Rules the tenants have to follow and rules the landlord has to follow. Like any game, if you know the rules of Section 8, you can leverage them to your benefit. The Section 8 rules help me get annual rent increases, make sure all of my rent is paid, and ensure my properties are well taken care.

Note: These things don’t just happen. I have learned these rules and set up processes in my business to make sure I follow them every single time.

5. Supply & Demand. In my market, the number of people with Section 8 vouchers far exceeds the number of landlords with quality housing who take those vouchers.

To capitalize on this gap, we rehab our houses to be the nicest in the neighborhood, which attracts great tenants quickly. Great tenants mean minimal property management headaches and great cash flow.

Once I put all these together – that Section 8 rental properties can provide guaranteed income, reduced turnover, & wonderful tenants – I knew I’d found the niche for me. And now I wonder – who wouldn’t want that?

[Jennifer Donley, Contributing Writer, owns 26 rental properties and teaches others about Section 8 housing.  Students can get access to over 75 plug-n-play documents that she currently uses in her business to buy & rehab houses, manage tenants and follow Section 8 processes, as well as weekly group coaching at http://www.section8educate.com.]  

Inspiration Corner

If you have never heard of Michael Beckwith, the Spiritual Director of the Agape International Center in Los Angeles, you need to stop what you’re doing and google him right now!

Michael Beckwith is the REAL DEAL in terms of all things inspirational and spiritual.  He truly understands how to unlock and unleash human potential and all the things that block us from living our best lives.

Michael has a FREE Masterclass online now called, “True Manifesting From The Soul” that is just phenomenal!  It is so eye-opening and he has a way of explaining things that even if this information is new to you and you don’t consciously grasp everything he’s saying in the moment, he speaks a “soul” language that your subconscious will understand and will reveal to you in due time.

There is a “paid” version as well if you want to delve deeper (which I make no money off of by the way), but even if you just listen to the free class, I think it will give you great information you can use in your life right now.  If you take it, I hope you get as much out of it as I did!  


So, until next week…



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