The Section 8 Housing program was established in 1974 to provide rental assistance for those struggling to afford it. This program still helps millions of people today.
Section 8 falls into a strange legal category, though, because it's not fully protected by federal law. What we mean by this is that while Section 8 is an accepted program throughout the US, it's up to the states, or even cities, to decide if a landlord has to take Section 8 tenants.
Colorado is a great example of this. While it's still technically legal, though frowned upon, in Denver to deny housing due to Section 8 status, Boulder has outlawed it. We'll discuss other important aspects of Section 8 housing in Colorado in this article.
Section 8 Housing: The Basics
Before getting into the details of Section 8 housing, particularly in Colorado, we should cover the basics of how the Section 8 program functions. The overall premise is simple.
- The recipient must be making 80% of the state's median income or less
- If the person meets the proper guidelines they can apply for a voucher
- If the voucher is approved it entitles the recipient to a certain type of housing unit at a reduced cost
- Oftentimes, 30-40% of the person's income will go toward rent
- Whatever portion of the rent the recipient can't cover is paid by the government
Section 8 Rules
While a tenant can't always be denied housing because of Section 8 status, they can have their Section 8 voucher denied or revoked. It's not easy to fail the screening for a Section 8 program because most of it involves not committing felonies. To qualify, the tenant must not be:
- A minor
- Living in the US illegally
- An illicit drug user or dealer
- A sex offender
- In debt to the government
- A recent evictee from a government housing program
- Making more money than they claim
Benefits for Landlords
There might be an initial temptation to write off Section 8 as another public assistance program that benefits tenants at the expense of landlords, but that's not at all true. Landlords can reap quite a few rewards by taking on Section 8 tenants.
One of the major benefits of being a Section 8 landlord is that there's no shortage of potential tenants. There are currently over 1 million families on a waiting list for Section 8 housing. Some estimates say the number may even be as high as nine million.
The government also helps pay rent and screens tenants, which means much less work for you. Guaranteed, scheduled payments and tenants that come already background-checked are perks that many landlords are happy to have.
Section 8 in Colorado: A Guide
Section 8 housing is a government program that makes it easier for low-income individuals to find homes. While the landlord also benefits by accepting or even catering to Section 8 tenants, it's important to know about the Section 8 program first.
We've discussed most of the important details of the Section 8 program in this article, but there's always more to learn. You can find more information about Colorado real estate on our website. We encourage you to contact us if you have any questions or concerns.
