According to USAFacts.com, as of 2023, about 185,304 people in Maryland rely on subsidized housing options.
Subsidized housing is housing made more affordable by government assistance. Section 8, or the "Housing Choice Voucher" (HCV) program, is a perfect example. It helps low-income families afford decent and safe housing in the private market, including that of Columbia, MD.
Section 8 also benefits landlords. It guarantees a reliable income stream paid by the Public Housing Authority (PHA), the local government agency that administers the program.
However, your rental fee must first "qualify" for Section 8. Our team at PMI Mason Dixon has shared insights into Section 8 rental criteria and the rent evaluation process in this landlord guide for Columbia, MD, properties, so please read on.
How Section 8 Determines Rent Reasonableness
Because Section 8 is for low-income families, only properties with rental fees that meet "reasonable" standards qualify for the program. So, if you plan to become a Section 8 landlord, the rent you charge will "undergo" an assessment to ensure it aligns with the program's rent reasonableness criteria:
- Market Comparisons: Assessment of the average rent for similar units in your neighborhood
- Rental History: Reviewing your property's rental history, especially if it has previously met Maryland housing standards
- Property Features: Location, size, condition, and amenities affect Section 8 rental valuations
- Financial Trends: Current economic climate, inflation rate, and demand for housing
Please remember that Section 8 will only pay what it deems reasonable according to its guidelines, although you can set the rental amount you will collect. Such guidelines help tenants access safe, quality housing without overburdening them or their landlords.
Columbia Landlord Tips to Meet Section 8 Guidelines
To meet Section 8 guidelines, conduct regular valuations of your rental property. They can help ensure your rental fees are appropriate and justifiable. They also let you determine whether your charges align with fair market rents (FMRs).
To give you an example of what fair rents look like, here are the 2024 FMRs for Baltimore-Columbia-Towson, MD, according to RentData.org:
- $1,379 for a studio unit
- $1,582 for a one-bedroom unit
- $1,943 for a two-bedroom unit
- $2,519 for a three-bedroom unit
- $2,849 for a four-bedroom unit
Another crucial tip to remain compliant is to ensure your rental property undergoes annual inspections. Please never delay necessary repairs, either, as doing so can risk the health and safety of your property and tenants.
Lastly, please treat Section 8 tenants the same way you do your other renters. For instance, have them undergo the same stringent resident screening process all your other tenants have undergone.
Unlocking Your Rental Property's Section 8 Potential
Understanding how Section 8 evaluates rent in Columbia, MD, keeps you compliant and helps maximize your income potential. But if you want to simplify things further, partner with PMI Mason Dixon's experienced property management professionals.
PMI Mason Dixon consists of licensed professionals who use state-of-the-art technology to grow our clients' real estate assets and investments. We're a locally owned and operated firm and proud member of PMI, a dynamic, fast-growing company that has perfected and improved the property management sector for almost two decades.
Contact us today for a free rental analysis and property consultation!
