Section 8 (Housing Choice Voucher)

A federal program where HUD pays a portion of tenant rent directly to the landlord.

Section 8 vouchers cover the gap between what a tenant can afford (~30% of their income) and the unit's fair market rent (set by HUD per zip code). For landlords: pros are guaranteed payment from HUD for the voucher portion, longer tenancies, and a deeper applicant pool. Cons are mandatory housing-quality-standards (HQS) inspections (initial + annual), lease addendum requirements, and the inability to evict for many lease violations without HUD coordination. Section 8 is most viable in class C neighborhoods where the FMR is close to or above market rent — verify your zip code's FMR on the HUD website before structuring around it.