Two numbers, one lease
On a housing choice voucher lease the landlord collects 100% of the contract rent, but that rent is split: the housing authority pays the HAP portion directly, and the tenant pays the remainder.
Underwrite conservatively on the HAP portion alone, then show the full-contract-rent case as the upside scenario.
Where HUD fair market rents fit
Published fair market rents set the ceiling a housing authority will approve in a given metro. They are a planning benchmark, not a guaranteed payment.
Inspections and timing
Housing quality standards inspections gate the first payment. Budget for the inspection cycle when projecting your first months of cash flow.
Frequently asked questions
- Is voucher income guaranteed?
- The HAP portion is paid by the housing authority. The tenant portion is not government-guaranteed and should be underwritten as tenant-paid rent.
- Can Section 8 rent be used for DSCR qualification?
- Yes. The executed HAP contract and lease document the rent used in the ratio.
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