Council Bluffs, Iowa, provides access to multiple activities. Residents can walk at Bayliss Park or pick fruits at Ditmars Orchard. The city's wide range of natural sites makes it an exceptional place to own a Section 8 rental home.
World Population Review reports that Council Bluffs had a population of over 62,000 in 2024, with over 13% being at the low-income level. The poverty rate points to a need for affordable housing, including Section 8 homes.
Are you considering Section 8 renters in the Council Bluffs rental market? Let's explore the benefits and challenges of housing assistance programs like this.
1. Pro #1: Consistent Rent Payments
The government's assurance of rent payments is among the most appealing reasons to rent to Section 8 renters. America's housing authority will pay you a percentage of your tenant's rent depending on their income.
Expect to receive around 70% of your tenant's total rent. Even if a tenant's financial circumstances change, Section 8 income guarantees landlords a steady flow of cash. Landlords are less vulnerable to non-payment since the government guarantees their share of the tenant's rent, which makes it simpler to manage your cash flow.
The administrative load of pursuing past-due payments from renters is also decreased when you own a Section 8 rental property. You can be confident that the government payments will likely arrive on time every month.
2. Pro #2: Excellent Demand
You may experience a constant flow of prospective tenants due to today's strong demand for government housing. Council Bluffs and many other communities have lengthy waiting lists filled with prospective tenants anxious to locate housing because Section 8 vouchers are limited. Long waiting lists imply that a wide range of potential tenants are frequently available for landlords to select from.
Due to increased demand, Section 8 homes are less prone to being empty for extended periods. The large demand for government housing can also help stabilize the Council Bluffs market if the economy becomes unstable or witnesses high rental prices.
3. Con #1: Inspection Demands
Section 8 rental properties must adhere to Housing Quality Standards, or HQS, which include an initial examination and annual inspections. Your property must pass an initial examination before a tenant moves in. Numerous aspects are included in this examination, such as the following:
- General condition
- Safety
- Cleanliness
Your property will also be subject to routine, frequent annual inspections to verify continued adherence to the HQS. These comprehensive exams could address areas such as structural integrity and sanitation.
4. Con #2: Administrative Demands
Managing Section 8 tenants requires several administrative duties, including paperwork and a strict tenant screening process. You must oversee a large amount of paperwork that the housing authority requires. The paperwork includes:
- Inspection reports
- Income verification forms
- Lease agreements
Landlords must also stay informed about modifications to federal and local housing laws to guarantee adherence. Updating your policies accordingly is an essential part of the job.
How We Can Help Landlords
The benefits of having Section 8 tenants include consistent rent payments and the high demand for government housing. Pros include the stringent inspection and administrative demands of the Section 8 program.
At PMI of the Midlands, we have 20-plus years of experience helping landlords manage both commercial and residential properties by providing property management tips and services. Experience Section 8 housing benefits by partnering with us today!
