1. Late or Partial Payments from Tenants

While the government covers a portion of the rent through Housing Assistance Payments (HAP), tenants are still responsible for paying the remainder. If a tenant struggles financially or mismanages their funds, it can result in late or missing payments.

2. Complex Inspection Requirements

Properties must meet stringent inspection standards under the Housing Quality Standards (HQS). These inspections can lead to delays in leasing, costly repairs, or compliance challenges, especially for owners unfamiliar with the process.

3. Delayed Initial Payments

The process to get approved for Section 8 and receive payments can be slow, with delays in tenant approvals, inspections, and paperwork. This creates cash flow issues, especially for landlords who depend on timely rent payments.

4. Tenant Screening Restrictions

Landlords must comply with Fair Housing laws when screening Section 8 tenants. However, some owners feel limited in their ability to deny applications for non-discriminatory reasons due to the fear of legal repercussions.

5. Lease Compliance Issues

Section 8 tenants are required to follow lease terms, but enforcing lease compliance can be tricky. Evicting a Section 8 tenant often involves notifying both the tenant and the local housing authority, adding another layer of bureaucracy.

6. Rent Cap Challenges

Local housing authorities often set rent limits for Section 8 properties based on market rates, which may not align with your property's value or expenses. This can make it hard to maintain profitability.

7. Administrative Burdens

Dealing with the housing authority requires significant time and effort, from completing extensive paperwork to managing tenant recertifications, HAP adjustments, and periodic audits.

8. Perception of Tenant Stability

Some landlords worry about tenant reliability, with concerns about property damage, noise complaints, or non-compliance. While not unique to Section 8 tenants, these issues can feel amplified given the added layers of bureaucracy.