Back to ZIP lookup

Section 8 Investment Analyzer

Does this property pencil out better on a voucher than at market rent? Compare both scenarios side by side, with near-zero vacancy, first lease-up lag, and HQS costs factored in.

Not sure where to look? See the ZIP codes where Section 8 pays above market rent

Deal inputs

Use the ZIP lookup to find the payment standard, then subtract the tenant’s utility allowance for the contract rent.

Voucher vs market — steady-state cash flow+$1,764/yr

The voucher pays at or above market with far lower vacancy — strongly favorable. Pursue it.

Market rent

Monthly cash flow
-$148
Gross rent (yr)
$23,400
Vacancy loss
-$1,404
Operating exp.
-$7,800
NOI
$14,196
Debt service
-$15,967
Cash flow (yr)
-$1,771
Cap rate
5.7%
Cash-on-cash
-3.2%

Cash invested: $56,000

Section 8 voucher

Monthly cash flow
-$1
Gross rent (yr)
$24,000
Vacancy loss
-$240
Operating exp.
-$7,800
NOI
$15,960
Debt service
-$15,967
Cash flow (yr)
-$7
Cap rate
6.4%
Cash-on-cash
-0.0%
One-time (yr 1)
-$2,650
Year-1 cash flow
-$2,657

Cash invested: $56,000

Voucher scenario assumes ~1% vacancy (vs 6% market), a one-time first lease-up lag, and an HQS inspection + repair reserve. Rent is locked for the lease term. Figures are decision-support estimates, not guarantees.

HOTMA at a glance

The 2016 Housing Opportunity Through Modernization Act changed how PHAs calculate tenant income, what assets count, and how units are inspected. Most provisions took effect in 2024. Here’s what materially affects you as a landlord/investor.

Tenant income recertifications happen LESS often

2024-01-01 (PHA discretion through 2025)

Annual recerts move to a fixed PHA calendar, with interim recerts only when income drops ≥10% or rises ≥10% (PHA discretion). The old "report any change" rule is gone.

What it means for you: Tenant rent share is more stable year-to-year. Less administrative back-and-forth with the PHA mid-lease; HUD share fluctuates less between renewals.
HUD reference

Hard asset cap added

2024-01-01

Tenant households are now ineligible if net family assets exceed $100,000 or they own real property suitable as a primary residence. Replaces the previous "no cap, just imputed income" approach.

What it means for you: A small share of incumbent tenants may lose eligibility at recert; PHA handles the notice. Doesn't affect first-time leases — qualification happens before unit selection.
HUD reference

Imputed asset income only above $50K

2024-01-01

PHAs no longer impute investment income on family assets under $50,000. Only assets above that threshold count toward HUD's income calc.

What it means for you: Tenant rent shares may drop slightly for asset-holding tenants. HUD share rises to fill the gap — landlord total is unchanged.
HUD reference

Self-employment income computed cleanly

2024-01-01

HOTMA standardizes how PHAs handle Schedule C / 1099 income, allowing reasonable business expense deductions. Previously PHAs disagreed wildly.

What it means for you: More predictable tenant rent for self-employed voucher holders; fewer disputes over imputed business expenses.
HUD reference

Last reviewed 2024-12-01. Not legal advice — PHA implementation varies; verify specifics with the housing authority.