There are many state and federal programs in Nebraska designed to help renters and homeowners pay for their residences. For example, around 2,600 Nebraskans received funding from the Nebraska Homeowner Assistance Fund. Renters in the state can tap into the Section 8 program to get government money to pay their monthly rent.
Section 8 isn't designed to pay a person's entire rent. However, you might be wondering how the program decides if the rent you're being charged is reasonable. Read on as we discuss what parameters the program uses to calculate what to give tenants each month.
Location
Your rental property needs to be within the area that Section 8 covers. Keep in mind that this isn't a hard and fast rule. The Public Housing Authority will make accommodations if your rental is close to the area that they cover.
You can check directly on the U.S. Department of Housing and Urban Development's website to see if your property is within their limits.
Fair Market Rent
You and Section 8 want to ensure that you're paying fair market rent for your rental unit. The local Section 8 office will set the maximum amount they're willing to pay or the payment standard for various-sized rentals. One of the main contributing factors in the calculation of fair market rent is the number of bedrooms a rental has.
Section 8 wants to compare your unit to another similar one. They want to ensure you're paying a fair amount in rent and receiving what you need.
Property Condition
On that same token, you don't want to pay an exorbitantly high rental amount for a property that needs a lot of repairs. The Section 8 office won't compare various units that aren't at the same level of condition. Some of the things they'll review include:
- The state of your rental unit
- Amenities or upgrades the landlord has added
Some landlords will upgrade their property to appeal to more renters and have the ability to charge a higher rent amount. Section 8 will take that into account.
How Much Your Tenants Pay
Anyone who receives a Section 8 housing voucher will need to contribute a set amount toward their monthly rent. This amount depends on various factors. It needs to be the largest amount out of one of the following:
- The lowest rent amount set by the Public Housing Authority
- The state welfare rent
- 10% of their gross monthly income
- 30% of their monthly adjusted income
Your tenants will pay that amount directly to you. You'll receive a separate voucher from your local housing authority for the remainder of the rent. Your tenant can choose to pay a higher amount if the rental price is higher than what the Public Housing Authority has set.
Get Help Managing Section 8 Properties in Nebraska
Having a property that can rent around or a little below the average rental rate for your area is a great way to find more tenants. Expand your reach to include Section 8 tenants. You may even receive a higher rent amount by accepting those housing vouchers.
It can be challenging juggling your regular life and managing your rental housing properties. With 22 years of experience, the experts at Aksarben Property Management are here to ensure you stay in compliance with housing laws in the state. Reach out to our team to book a meeting with us.
