Section 8 Investment Analyzer
Compare the first year with ongoing monthly cash flow. Adjust rent, vacancy and lease-up separately for market and voucher scenarios, using the same property and financing.
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Data periods and program effective dates are shown separately. Report a correction.
Research ZIP-level voucher references alongside market rents
Start with an example. Replace the rent, purchase and expense inputs with your property’s numbers.
Both scenarios start with 6% recurring vacancy and 30 days of initial lease-up. These are editable examples, not observed program averages.
Compare cash flow
Edit the assumptions ↓First year
Total after initial lease-up and setup costs
- Market
- -$16,503/ year
- Voucher
- -$14,582/ year
Voucher +$1,921 / year
Ongoing monthly
After the first year, with unchanged rents and costs
- Market
- -$1,276/ month
- Voucher
- -$1,088/ month
Voucher +$188 / month
The voucher scenario has higher ongoing cash flow under these inputs. The voucher scenario has higher first-year cash flow after initial lease-up and setup costs. Both scenarios still have negative ongoing cash flow.
Cash to close: $56,000 (down payment + closing costs). Initial repair and inspection allowances are deducted in first-year cash flow. Additional liquidity may be needed for those costs and periods of negative cash flow.
1 · The property
Shared purchase and financing
Both scenarios use these costs. Enter 100% down for an all-cash purchase.
Operating expenses should include taxes, insurance, maintenance, management, owner-paid utilities and any reserves you want deducted. Exclude mortgage payments and the initial costs entered below. Mortgage insurance, income taxes, appreciation and sale proceeds are not modeled.
2 · Rent and timing
Set the assumptions for each scenario
Initial lease-up is the time from purchase until rent starts. Use 0 days for a unit already collecting rent. Recurring vacancy applies only to the remaining days in year one.
Voucher contract rent includes both the PHA and tenant portions paid to the owner. A HUD reference or payment standard does not establish approved contract rent. Review ZIP rent references and PHA schedules.
Review updated comparison ↑See where the money goes
| Cash flow item | Market | Voucher |
|---|---|---|
| Scheduled rent | $9,000 | $11,400 |
| Initial lease-up loss | -$740 | -$937 |
| Recurring vacancy loss | -$496 | -$628 |
| Rent after vacancy | $7,765 | $9,835 |
| Operating expenses | -$7,800 | -$7,800 |
| Net operating income | -$35 | $2,035 |
| Mortgage payments | -$15,967 | -$15,967 |
| Initial repairs / setup | -$500 | -$650 |
| Cash flow | -$16,503 | -$14,582 |
A 365-day planning year keeps lease-up and recurring vacancy separate. Expenses and mortgage payments continue for the full year. The ongoing comparison assumes no change in rents, expenses or financing. Displayed dollars are rounded; calculations retain full precision.
Ongoing return metrics
| Metric | Market | Voucher |
|---|---|---|
| Cap rate | 0.3% | 1.2% |
| Cash-on-cash | -27.3% | -23.3% |
Cap rate = ongoing net operating income ÷ purchase price. Cash-on-cash = ongoing cash flow ÷ cash to close; it excludes initial setup costs from the denominator and is N/A when cash to close is $0.
How the comparison works
First year includes the start-up period
Scheduled annual rent is reduced for initial lease-up. Recurring vacancy applies to the remaining days, so the same days are not deducted twice. Full-year operating expenses, mortgage payments and your initial repair or inspection allowances are then subtracted.
Ongoing cash flow holds inputs constant
Annual rent minus recurring vacancy, operating expenses and mortgage payments gives ongoing annual cash flow. Dividing by 12 gives the monthly average. Initial setup costs do not repeat. This is a comparison of assumptions, not a rent-growth forecast.
Need help choosing a rent assumption? Read how FMR and payment standards differ from contract rent.