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>margin of being housed or being homeless to stay housed. The lower the cost, the easier it is for family, SSDI, Section 8, In most of the country, Section 8 h
by beerandt 5y ago
>margin of being housed or being homeless to stay housed. The lower the cost, the easier it is for family, SSDI, Section 8,
In most of the country, Section 8 housing sets an artificially high floor on the price of rentals. Military bases often have a similar impact. In both cases, landlords (rationally) price rentals the highest amount they know the government will pay.
As section 8 has become more prevalent in the last decade (being a requirement for most types of speculative construction financing due to Dodd Frank), it has become more and more influential in determining "market" rates of rental housing.
Which is also why you see apartment complexes competing via "features", and not price.
I don't know what the solution is, but it's classic unintended consequences that "affordable housing" requirements have led to higher prices.
- Gunax 5y agoI am a bit surprised to hear this, as I've always had section 8 applicants offer less than market rate. Owners only accept it because tenants often stay longer, and the rent is guaranteed (you're paid by the government directly, and the tenant reimburses the government their portion).
- beerandt 5y agoRight- and that was my experience with it as well, up until the last decade or so. The benefits you list are also true for markets that would "naturally" be priced lower than section 8 limits. The policies hud put in place to try and get nicer areas and more landlords to accept section 8, really just translated into being policies of willing to pay higher rent amounts. There's some circular reasoning going on, in that higher priced rentals must be nicer or in nicer areas. And the bigger apartment company players know how to game it, especially with new construction in cheaper areas of high rent zip codes.