Did you know the number of Section 8 tenants in Oklahoma City has increased by 20% in the last year?
As a landlord in OKC, you’re always looking for reliable tenants, but have you considered opening your doors to this growing population? Participating in the OKC section 8 program can open doors to a stable tenant base while doing your part to address housing needs in your community.
In this article, I will discussSection 8 housing OKCto clarify your doubts as a property owner, from the application process to ongoing management, with a final decision-making ability on whether accepting Section 8 tenants makes sense for your rental property.
What is Section 8 Housing? An Overview for Oklahoma Landlords
Section 8 housing refers to the Housing Choice Voucher program run by the U.S. Department of Housing and Urban Development (HUD). Under Section 8, low-income families are issued vouchers to pay their monthly rent. These vouchers bridge the gap between 30% of the tenant’s adjusted gross monthly income and the fair market rent for that area. This program is also known as the ‘housing voucher program’.
The Section 8 program in Oklahoma City is administered by the Oklahoma City Housing Authority (OCHA). The local housing authority (OCHA) determines tenant eligibility, issues vouchers, conducts housing quality inspections and pays rent subsidies directly to participating landlords monthly.
As a landlord, you can choose whether or not to participate in Section 8 and accept these vouchers. However, doing so enables you to rent to approved tenants who may otherwise be unable to afford market-rate rents. It also guarantees timely monthly rent payments from OCHA on the tenant’s behalf. And, there are some responsibilities landlords must undertake as well when dealing with the Section 8 program.
How Does Section 8 Work in Oklahoma City?
The Oklahoma City Housing Authority (OCHA) oversees the administration of Section 8 vouchers within the city limits. Here’s a quick overview of how section 8 OKC works:
Eligible Tenants Apply: Interested tenants must meet income eligibility requirements and pass a criminal background check. OCHA maintains a waiting list for those approved.
Tenant Finds a Rental Unit: Once receiving a voucher, tenants have 60 days to locate an eligible rental property within payment standards set by OCHA.
Landlord Agrees to Participate: You’ll complete paperwork agreeing to the terms of the program and allow unit inspections. Rents must be reasonable compared to non-subsidized units in the area.
Lease is Signed: Tenants sign a lease just like any unsubsidized tenant would, but it’s subject to OCHA approval. The initial lease term is usually 1 year.
Housing Assistance Payments Begin: OCHA calculates the tenant portion and pays the landlord directly each month. Payments are issued around the first of the month.
Am I Eligible to Rent Out My Property Under Section 8?
To participate as a Section 8 landlord in Oklahoma City, your rental property must meet basic housing quality standards verified by inspection. Here are the major eligibility requirements set by OCHA:
- The unit must be located within the OCHA jurisdiction, which covers Oklahoma City and most surrounding communities.
- It must pass a Housing Quality Standards (HQS) inspection conducted by OCHA to ensure the unit is safe and sanitary for tenants. This includes things like functioning appliances, no pest infestation, installed smoke detectors, etc.
- The rent charged for the unit must be reasonable compared to other unassisted units in the area.
- Landlords must have a satisfactory record of rent collections, property maintenance, and no outstanding violations.
Should I Accept Section 8 Tenants in OKC?
For many landlords, the guaranteed income of Section 8 housing far outweighs the additional paperwork and regulation involved in participating. Section 8 vouchers ensure timely rent is paid directly to the owner each month. This can stabilize cash flow and reduce non-payment risk compared to regular rentals.
While inspections and eligible rent limits may require flexibility, retaining control over tenant screening helps protect properties. Working with public housing authorities like OCHA opens up a wider pool of qualified applicants when units are available. Section 8 effectively allows owners to fill vacancies and serve their community.
Before participating, just be sure properties can pass HQS standards. Good communication with tenants and properly addressing any issues also help the process run smoothly in the long term. For landlords willing to take on the responsibilities, Section 8 housing in OKC can benefit their portfolio with dependable rental income each month.
Can I Discriminate Against Section 8 Applicants?
No, landlords are not legally allowed to discriminate against or reject Section 8 applicants solely because they use rental assistance. The Fair Housing Act protects tenants using Section 8 vouchers from housing discrimination based on their source of income.
In OKC and across the US, the source of income (including Section 8 vouchers) is a protected class, just like race, color, religion, sex, disability, familial status, and national origin. As a landlord, you must evaluate Section 8 applicants using the same screening criteria you apply to all prospective tenants, such as background and credit checks.
According to the Fair Housing Act, discrimination against Section 8 tenants can result in civil fines or penalties up to $100,000. It’s always best to consider each applicant as an individual based on rental history and ability to pay rent on time rather than making blanket assumptions about an entire group.
Are there Benefits to Landlords for Accepting Section 8?
Landlords often have misconceptions about Section 8 renting that deter them from participating in the program. However, accepting Section 8 tenants can provide benefits to property owners:
Guaranteed Rent Payments: With Section 8, landlords receive timely rental payments directly from the PHA on behalf of the tenant. This reduces the risk of missed or late rental payments that landlords face with unassisted tenants.
Longer Tenancy: Studies show that Section 8 households tend to stay put longer than unassisted renters since the voucher allows stability. Longer tenancies mean less turnover costs for you.
Higher Occupancy Rates: There is consistently high demand for affordable rental properties in Oklahoma. Landlords who accept Section 8 rarely have difficulty finding qualified tenants quickly.
Fair Market Rents: In most areas, Section 8 payment standards are set at or above average market rents to ensure landlords receive comparable rates. Rents can be adjusted annually to keep up with market changes.
Minimal Hassle: Once approved, the PHA directly handles the tenant’s portion of the rent. Landlords receive one monthly rental payment and don’t have to worry about collecting from tenants.
Positive Social Impact: Providing housing through Section 8 helps low-income families stay in their communities and access better opportunities through stable shelter. As a landlord, you contribute to this critical issue.
Peace of Mind: The housing authority screening process helps ensure approved Section 8 tenants have a steady income source and rental history to keep paying on time. This provides landlords greater security than renting to tenants without subsidies.
Potential Drawbacks for Landlords with Section 8 Vouchers
While Section 8 provides benefits, there are also some potential drawbacks landlords may face:
Inspections and Regulations: The units must pass housing quality standards inspections conducted by the PHA periodically. Any required repairs to maintain compliance can cost the landlord time and money. The program also comes with additional regulatory requirements to follow.
Potential for Higher Tenant Turnover: Some studies have found Section 8 tenants tend to have higher mobility rates than unassisted tenants due to life circ*mstances. Frequent tenant turnover increases a landlord’s costs for refurbishing units between new leases.
Delayed or Non-Payment Risk: While rare, there is a small risk the PHA could be late making payments or under budget constraints retroactively terminate housing assistance. This leaves the landlord to collect full rent or evict without a subsidy.
Smaller Tenant Pool: Accepting vouchers means limiting your tenant prospects to only those eligible for Section 8. This narrows down the total number of rental applicants you can consider compared to the private market.
Stigma and Discrimination Claims: In some circ*mstances, landlords have faced claims of discrimination or NIMBY (“Not In My Backyard”) opposition for participating in the program within a neighborhood.”
What are the Responsibilities of a Section 8 Landlord?
Once you lease to a Section 8 tenant, you have certain responsibilities to the program:
Maintain Housing Quality Standards: Units must pass an inspection by OCHA and meet Housing Quality Standards before a lease can be approved. This ensures the rental meets basic requirements for safety, sanitation, and structural soundness. Landlords must also make repairs if units fail a follow-up inspection.
Screen Tenants: Landlords are allowed to screen tenants based on their rental history, references, and background checks – in addition to the eligibility screening done by OCHA. This gives you control over selecting suitable residents.
Follow Fair Housing Laws: Like all rental properties, Section 8 units must adhere to fair housing laws prohibiting discrimination based on race, religion, family status, disability, or other protected classes.
Comply with Lease Terms: The lease agreement between the landlord and tenant must follow OCHA’s standard lease terms to be an approved Section 8 contract. This includes provisions about rent payment, damages, notices, and other policies.
Request Rent Increases: If you want to raise the rent amount after the initial lease term, landlords must submit a written 60-day notice and have any increases pre-approved by OCHA before finalizing a new lease. Increases can’t exceed fair market rents.
Participate in Mandatory Training: OKC landlords new to the Section 8 program must complete a free training session provided by OCHA about program rules, landlord responsibilities, and the inspection process before renting to voucher holders.
[Also Read: Section 8 Housing Landlord Requirements in Oklahoma]
Section 8 Application Process for Landlords in Oklahoma City
Landlords who wish to rent to tenants using Section 8 housing choice vouchers through the Oklahoma City Housing Authority must complete the following application steps:
Complete Rental Owner Application: Contact the OKC Housing Authority to request a Rental Owner Application packet. Fill out all required forms providing property and owner details.
Schedule a Property Inspection: An inspector will evaluate the unit to ensure it meets Housing Quality Standards regarding things like security, fire safety, proper appliances, functioning utilities, and no lead paint hazards.
Execute Housing Assistance Payments Contract: If approved, the landlord and Housing Authority will sign a contract agreeing on the unit rent amount and duration as well as owner responsibilities like complying with the lease and property upkeep standards.
Accept/Reject Section 8 Applicant: When a voucher holder finds an available unit, landlords will be sent their information and background check results. They can choose to accept or deny the prospective tenant.
Sign Lease Agreement: For approved tenants, landlords sign a standard one-year lease including terms like rent payment procedures, occupancy rules, maintenance duties, and other stipulations that must meet housing regulations.
Receive Housing Assistance Payments: Landlords will get direct deposit rental payments from the Housing Authority on or around the first of each month as long as the tenant maintains occupancy in the rental unit.
Tenant Screening and Selection for OKC Section 8
Landlords retain the right to screen and select Section 8 tenants based on their own established criteria and approval procedures as long as they do not illegally discriminate against protected groups. Common factors evaluated include:
Credit History & References: Review an applicant’s financial standing and previous rental history through a credit report and contact previous landlords. However, economic hardship is generally assumed for Section 8 participants.
Background Check: Searching public records to check for any criminal convictions, evictions, or lawsuits that could impact tenancy. Section 8 prohibits registering sex offenders from participating.
Income Verification: Confirming the tenant’s source and total monthly income match the information provided, as sufficient earnings are required to cover their portion of the rent.
Occupancy Standards: Maximum occupancy is based on unit square footage and gender/age requirements, like 2 persons per bedroom.
Other Considerations: Pet policies, smoking rules, vehicle parking, etc. Section 8 guidelines take precedence over landlord preferences if they conflict.
[Also Read: How to Screen Tenants for Rental Property]
Section 8 Housing Management Best Practices
Once approved as a landlord and leasing to a Section 8 tenant, there are some best practices to follow to keep the rental business running smoothly:
Communicate Openly with Tenants: Address any issues immediately to avoid escalating problems. Provide 30-day written notice for any necessary repairs or lease violations.
Work Closely with the PHA: Notify them promptly regarding tenant concerns, requested repairs, rent payment status, lease terminations, and other changes for their records and guidance.
Complete Required Paperwork on Time: This includes annual/interim recertification forms, rent adjustment notices, and responses to reasonable accommodation requests to remain compliant.
Screen all Prospective Tenants Thoroughly: Run credit and background checks even though the PHA also evaluates applicants. Document and share any factors that would cause an automatic denial.
Enforce the Terms of the Lease Consistently: Handle late rent, noise complaints, property damage, or other violations the same as you would for private tenants. Keep detailed records of interactions.
Inspect Units Regularly: Note needed maintenance issues right away to address before the annual inspection. Units must always meet Housing Quality Standards to continue receiving subsidy funds.
Consider Landlord Training Opportunities: Stay up-to-date on program guidelines, fair housing laws, and best practices through any offered courses by the PHA or housing organizations.
Final Thoughts
The Section 8 Housing Choice Voucher Program in OKC can offer reliable income and expand your tenant base if you’re willing to meet certain requirements. Ultimately, it comes down to measuring the pros and cons of your individual rental business needs. Taking the time to understand program guidelines and obligations will help landlords make informed participation decisions. Reach out to your local Public Housing Authority with any other questions as you determine whether opening your doors to Section 8 is the right fit for your properties in Oklahoma City.
Want to talk to an expert who can help? Call 405-232-5800 and speak to the Section 8 OKC specialists.
Common Landlord FAQs for Section 8 in OKC
What happens if a tenant damages the unit?
The security deposit can be used for any unpaid rent or repair costs upon tenant move-out according to the terms of your lease. Section 8 does not provide additional funds for damages beyond the deposit amount.
Is the security deposit amount limited?
No, landlords can require the same security deposit amount from Section 8 tenants as private market tenants, up to one month's rent. However, any pet or additional deposit must be approved by the PHA first.
Does the rent amount have to stay the same each year?
No, landlords can request a reasonable rent increase of up to 10% per year at inspection recertification by completing the necessary forms and having the new rent amount approved in advance by the PHA. Market conditions and condition of the unit factored into the decision.
Can Section 8 tenants have pets?
Yes, tenants receiving Section 8 assistance are allowed reasonable pet ownership subject to any pre-existing pet policies in their lease agreement or house rules. Landlords cannot refuse pets simply because the tenant has a Section 8 voucher. Emotional support animals must also be reasonably accommodated.
Am I able to screen tenants like credit/background checks?
Yes, landlords have the full right to screen Section 8 applicants just as you would unassisted tenants. Criminal records or poor history may lead to denial. But you must use the same screening criteria for all.
Are security deposits handled differently for Section 8 tenants?
No, security deposits are collected like any other tenant per Oklahoma landlord-tenant laws. Be sure to properly document deposits received for Section 8 tenants, too.
