By now most of you have heard OHA is cutting about 10% of its tenants off the program, which means by the end of September I expect a 400 tenant in the metro to have to work out deals with their landlords to stay on as market tenants or move. I have been getting lots of calls from our business partners about what this means to our business.
Here are my thoughts:
- Since they are not only cutting vouchers they are reducing the amount of moving they allow we will see a lot less people with vouchers wanting to rent our properties. This means, do not count on finding section 8 tenants to fill your vacancies
- There will more pressure on these tenants to find other sources of income to pay for the rent. I expect a fair number of them will want to come up with some way to stay in there unit.
- Renting to section 8 tenants will not even been considered when buying new investment homes.
- This is the most important. There really is no way to know what will happen. the most important thing that we need to look at is how this effects real estate investors overall turn over. If this move by section 8 cuts turn over it will be a good thing. Only time will tell.
