Landlord questions Re Section 8 (Chicago, Aurora: real estate, apartments, rent)

[develop]

Hello Everyone,

I am a real estate developer in Chicago and I am also currently a landlord. I am continually purchasing and rehabbing properties turning them into apartments.

The section 8 housing program has peaked my interest as I have been coming across some very promising deals here in the city. I have found various properties, some even in good areas that would be ideal for section 8 tenants. I have scoured this forum and have not found clear answers to all of my questions.

Before I commit any more effort to this endevour I figured I would ask you guys some of the questions I have regarding the program. Any and all advice would be greatly appreciated.

1. How are apartments priced by the program, on average what should I expect CHA to pay me for a 1bd, 2bd, or 3bd apartment?

2. Do section 8 tenants pay their portion of the monthly rent, or should I just use the subsidy while making my calculations?

3. If section 8 tenants do pay their rent how do they pay? In cash, check, direct deposit? Do these tenants usually have checking accounts they can use? I want to detach my company from the process, has anyone had success with having the tenants mail their payments or send them electronically?

4. Does the voucher program work in the suburbs, places like Evanston, Skokie, Aurora, etc? If so is there a demand for section 8 housing in these areas?

5. How long does it take to get a tenant in the property? I realize theirs a waiting list for the voucher program, but will I find a tenant quickly for my units? Are they willing to take whatever is avaliable or are they picky like a regular tenant?

6. On average say a units rent is $1000 what portion of this is paid by the tenant?