Households in North Carolina with incomes at or below 50% of the area median income (AMI) are eligible for Section 8 housing.
Becoming a Section 8 landlord has its perks. You are guaranteed a majority of rent payments as the government pays for most of the total rent amount.
To house a Section 8 tenant, the Housing and Urban Development (HUD) department will determine whether or not your rent is reasonable in Goldsboro, NC using these factors:
Fair Market Rent in Goldsboro
HUD annually determines Fair Market Rent based on location. This rental rate is mainly based on historic rental rates but can vary depending on some circumstances.
The Fair Market Rent is calculated by looking at the last 15 months of rental rates in any given area. There are some outliers. For instance, newer units and communities reserved for seniors aren't considered.
In 2023, the Fair Market Rent values in Goldsboro were:
- One-bedroom: $697
- Two-bedroom: $918
- Three-bedroom: $1,148
- Four-bedroom: $1,564
- Five-bedroom: $1,799
- Six-bedroom: $2,033
Two-bedroom units are standard and are used to calculate reasonable rental rates for all property sizes.
Similar Properties in the Area
Affordable housing is not only defined by the Fair Market Rent. The Section 8 program will look into similar properties in the area to determine if your rent price is fair.
Local real estate comps (comparables) are properties with similar amenities and square footage. They are also close in age.
HUD offices will look at rental properties that may or may not be part of the Section 8 program already for comparisons. They can also look at different units in one property, otherwise known as a multi-family dwelling comp.
HUD looks at local comps to make sure the Section 8 rent is lower than or equal to comparable units.
How to Become a Section 8 Landlord
Becoming a Section 8 landlord is a great investment strategy if you are worried about late rent payments and inconsistent income. It's a pretty straightforward process.
A Section 8 tenant will apply to live on your property. If you approve them, they will connect with the public housing agent (PHA) who makes sure your property is habitable and rent-friendly.
If approved by the PHA, you'll fill out paperwork to earn income from the government. While the tenant stays, you are a Section 8 landlord. Once the lease ends, you are no longer considered a Section 8 landlord.
You can wait for tenants with housing vouchers to come to you or contact the PHA directly. You'll want to make sure you meet the requirements of Section 8 housing before seeking out these tenants.
Is Your Rent Reasonable?
It can be difficult to determine if your rent is reasonable if you are unfamiliar with the Fair Market Rent. Hiring a Goldsboro property manager who understands affordable housing can help if you want to become a Section 8 landlord.
Since 2007, Flagship Property Management has been helping investors with comprehensive services. Since the summer of 2023, we have combined with Flagship Realty Group to commit to real estate knowledge and customer service.
Our local North Carolina company will provide exceptional experiences catered to your specific needs. Let's get started! Contact us today to learn more about our services.
