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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (7164)	12/6/2002 1:19:19 PM
From: Doughboy	Read Replies (1) \| Respond to of 306849

Re Section 8. I am considering an investment in a Section 8 project precisely because of this. HUD pays above market rents in certain cities, because there simply aren't enuf LLs willing to lease to a Section 8. While HUD isn't supposed to be doing this, it's inevitable when HUD sets rents based on average city rents. The HUD average of say Boston is very high, about $1250 for a 2-BR in 2002, but if you go to certain parts of the city, you can easily find rental for much less. If you arbitrage the difference between them you can make money until the cows come home. And Section 8 tenants are stable, mostly working, so I don't see why LLs are so short-sighted. In many cities, you are much better off renting the Section 8 holder. Doughboy.