What are your thoughts on this?
I have been reading a lot about them lately and am shocked that they can be found in what I'd consider upper middle class neighborhoods.
If you are not familiar, the idea with Section 8 is that the government subsidizes 70% or so of your rent, and the participant has to pay the rest. Some landlords love it because it's a guaranteed ROI. Even if the LL has to evict, they will still continue to get the bulk of their money from the local housing department in the meantime.
On the other hand, some of these tenants are downright lousy, and bring crime with them to whatever neighborhood the move to.
Many homeowners don't like them, because they feel they have no skin in the game. Likewise, renters aren't thrilled, because Sec 8 LLs generally charge above market rent, simply because they'll get it, which can push rental prices upwards for everybody.
I read an article today in the Vegas Review Journal and was taken back. A small enclave of homes, with an average value of 500k, dealing with types of crime you'd never see in a place like that:
“Our small community of 178 homes has hosted at least four brothels, a counterfeiting ring, a chop shop, a drug ring, a meth lab, an auto repair business, unlicensed pit bull breeders, homes being run as boarding houses, as well as houses being rented as short-term ‘party’ rentals,†wrote Larry Fuss, vice president of the HOA. “Even traffic is a problem.â€
I did a search, and found similar stories in various cities. I guess the big problem now is that since so many Hedge Funds bought up millions of homes across the country, they'll take Sec 8 and put anybody/everybody into these properties, just to make sure they cash flow. As a result, the 'burbs are seeing types of crime they'd never seen before.
