In Oklahoma, struggling low-income families can get help to pay for their housing accommodation through the Housing Choice Voucher program.
This housing assistance program, also known as Section 8, is centrally managed by the US Department of Housing and Urban Development (HUD). It is locally directed by the Oklahoma Public Housing Authority (PHA).
What Is Oklahoma Section 8?
Section 8 refers to a housing act that provides financial help to low-income families in the form of rental housing assistance. This financial assistance is paid to private landlords on behalf of struggling families in the United States.
The Housing Choice Voucher Program (commonly known as Section 8) offers tenant-based rental assistance, allowing renters to live in a dwelling place of at least a minimum housing quality.
It’s important to note that this program is funded by the U.S. Department of Housing and Urban Development, but is locally administered by the Oklahoma Public Housing Authority. There are several Section 8 providers in the state as well, and low-income residents should apply through a provider to qualify for the rent assistance voucher.
What Does Section 8 Mean for Landlords?
Under the Section 8 housing assistance program, private landlords are encouraged to rent their apartments and rental homes at fair market rates to qualified low-income households. There will be a rental subsidy administered by the Oklahoma Public Housing Authority, through its various offices across the state.
To become a Section 8 landlord, you essentially agree to provide a decent dwelling space to low-income tenants. Most Section 8 landlords intentionally buy an investment property for this purpose, making them a vital source of housing for low-income earners and other socially and financially vulnerable members of the society, like the disabled and elderly.
Being a Section 8 landlord in Oklahoma comes with many benefits, including the following:
1. Consistent Income
If you choose to become a Section 8 landlord in Oklahoma, you will enjoy earning consistent income. After all, you will receive guaranteed rental payments because the housing assistance provided to low-income renters will be directly paid to you via bank deposit.
Since Section 8 housing assistance covers all or a portion of the tenants’ monthly rent, you are sure to receive rent payment every month. Even if only a portion of the rental rate is covered by the Section 8 program, only a small amount is at risk.
Since you will receive most or all of your rental income directly from the government, you don’t need to worry about getting paid on time.
2. Free Advertising
As a Section 8 landlord, you will benefit from free marketing and advertising resources. You can take advantage of the Section 8 housing authority’s advertising resources to list your rental home on several platforms.
Usually, the Oklahoma Public Housing Authority allows Section 8 landlords to list their rental units on the PHA website for free.
3. Pre-Screened Tenants
Another benefit of being a Section 8 landlord is that tenants are partially pre-screened. The housing authority performs criminal background checks on all adult renters as part of the qualification process prior to voucher issuance.
However, this does not mean that property owners should do away with their own screening process. As a landlord, it’s still important to conduct your own screening to ensure that responsible renters sign the lease, and they will take good care of your property and prevent any potential problems later on.
4. Consistent Demand
As a Section 8 landlord, you will also benefit from consistent demand from Section 8 tenants. In fact, there is a high volume of Americans applying for Section 8 housing. With the current inflation rate, more and more people are in need of housing opportunities that they can afford.
In addition, there are only a few landlords in Oklahoma who accept Section 8 vouchers. This means that despite the high housing demand from Section 8 tenants, there is a low supply from Section 8 landlords.
Becoming a Section 8 landlord means more opportunities for you to sustain your rental business because the market is not yet that saturated.
5. Low Vacancies
One of the things that most landlords dread is getting their rental unit unoccupied for a long period of time. Long vacancies are detrimental to your profitability as a landlord, and this is something that you should avoid as much as possible.
The good news is that with the high demand for Section 8 housing and low supply, Section 8 tenants often find it challenging to find landlords who will accept their vouchers.
Because of this, tenants are more likely to stay at one place for the long term, which is advantageous for the owner. Low vacancies and low turnover rate is beneficial for landlords because it means consistent cash flows and income.
Who Can Qualify for Section 8?
To qualify for Oklahoma Section 8 Housing Choice Voucher program, tenants need to meet the specific eligibility requirements, which are typically based on household size, income, and nationality.
- Income eligibility requirements: Applicants for Oklahoma Section 8 Housing Choice Voucher program need to meet the income eligibility requirements. Typically, the income of the applicant should not exceed 50% of the median income in the area.
- Residential eligibility requirements: To qualify for the housing assistance program, Oklahoma Section 8 applicants also need to meet the residential eligibility requirements. In general, applicants must be either U.S nationals or registered legal aliens who are residents of the state of Oklahoma.
Process of Oklahoma Section 8 Program
The Oklahoma Section 8 Housing Choice Voucher program offers a free-choice approach, which means that the participants are free to choose their preferred places of dwelling. It’s worth noting, however, that the rental units should meet the program’s standard health and safety requirements.
Once the applicants are deemed eligible, they are free to choose a suitable rental unit. Then the Oklahoma Section 8 Housing Choice Voucher program will pay a rental subsidy directly to the landlord.
If the rental rate is higher than the approved rental subsidy, the tenant should pay the difference directly to the landlord. In general, the rental subsidy is the amount of the actual rent less 30% of the tenant’s income.
Bottom Line
If you have further questions regarding Section 8 in Oklahoma, or about property management in general, get in touch with us! We can help with all aspects of being a landlord. Contact Keyrenter Tulsa today to learn what we can do for you!
This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regards to this content or any other aspect of your property management needs.