Investing in Section 8 Rentals

High Rental Yield

Detroit Section 8 rental properties can offer investors high rental yields. Compared to other real estate investments, Section 8 rental properties can generate much higher returns when compared to the cost of acquiring and rehabbing the property. All of our properties offer at least a 10% cap rate to the Traditional Investor.

Low Vacancy Rates

Section 8 rental properties in Detroit often have low vacancy rates because tenants are backed by the government. This means that investors can benefit from consistent rental income. Having a lower vacancy rate also allows an investor to reduce the amount they need to set aside each month for a vacancy reserve.

Low Maintenance Costs

Section 8 rental properties in Detroit often require low maintenance costs. Landlords can report Section 8 tenants who cause damage beyond normal wear and tear to the housing authority that issues the Section 8 vouchers. This can lead to the housing authority revoking the tenant’s voucher, so the tenant has an incentive to not damage the property. This means that investors can enjoy higher cash flow and lower maintenance costs.

Tax Benefits

Section 8 rental properties in Detroit can offer investors several tax benefits. Investors can benefit from deductions on mortgage interest payments and other expenses associated with the rental property. The largest deduction for a landlord is going to be the write of depreciation, which is considered a non-cash expense.

Long-Term Financial Security

Investing in Section 8 rental properties in Detroit can provide investors with long-term financial security. This is because the government subsidies and rental assistance will continue to provide a steady stream of income for investors. Just ask those landlords who didn’t have Section 8 tenants during the first 18 months of Covid and were not able to evict tenants who weren’t required to make rental payments due to the moratoriums put in place by local governments and states. Landlords in Detroit who had Section 8 tenants didn’t miss a rent payment from the housing authorities.

Choose The BNIC Network

We understand that choosing the right investment property can be difficult and time consuming. That’s why we are dedicated to providing our clients with the highest quality of service and the best advice possible. We understand the unique needs and challenges of out of state investors, and our team of experienced professionals is dedicated to providing the highest level of service and expertise, including professional property management services that screen and place tenants in all of the properties we manage on behalf of our clients.