Seven most commonly made mistakes investors make when buying property in the USA – Pt6
‘Section 8’ is our equivalent of housing benefits. Your tenant has a portion of their rent paid by the state based on their financial circumstances. Buying property that is ‘section 8 approved’ with or without a tenant is a good sign that the property is up to ‘code.’
Each year an assessment is made on the property and a section 8 is extended providing it is in good working order and meets the criteria as set out by the state.
If you’re buying a property that is section 8 approved make sure it is up to code. In the event that it isn’t then at the next annual assessment benefits to the tenant will be held until the property is brought up to code.