Section 8

The Section 8 program in the USA is different from any housing program found elsewhere in the world. Unlike other countries where unruly tenants get away with poor conduct and get re-housed, in the USA the Section 8 program does not allow for this.

The Section 8 program has a ‘one strike’ policy.Once there is a problem or the property is being mistreated, the tenant has 30 days to rectify the issue. If they fail to comply, Section 8 Authorities are immediately notified and brought in to evict the tenant.

Tenants thatare evictedlose any future right to join a Section 8 program anywhere in the USA and will not be re-housed by the program. This is to ensure that occupants do not abuse the property, but rather treat it as if were their own home. The ‘one strike’ policy has resulted in an extremely low percentage of evictions and higher quality of tenants.

Every year the HUD conducts inspections of all the Section 8 properties. Once they have passed the inspection, guarantee vouchers are re-issued.

Your investment is monitored closely through continued inspections by the management company, thus ensuring your peace of mind - whether you are an out of state or an overseas investor.


Metro Detroit (Wayne and Oakland County) is made up of 37 Section 8 departments whose responsibility it is to distribute Section 8 funding. Unfortunately, there is a greater demand for homes than there are suitable homes for these Section 8 tenants.

In the city of Detroit, there are more than 9000 pre-approved families with housing vouchers and cannot find a suitable home. Most families with housing vouchers are currently in unsuitable, emergency, or temporary accommodations.

Approximately, 80% to 100% of the Tenant’s rent is paid by the government. This payment goes directly to the owner’s management company and additional amount collected from each tenant will go into the client account.


Greater Detroit area stats 2013:

  • Section 8 Program waiting list 9,100
  • Extremely low income 7,500
  • Families with children 8,000
  • Elderly families 600
  • Families with disabilities 900


It’s important for the investor to know that all Section 8 houses must first be inspected by the the Section 8 program to insure the home meets federal government criteria. This insures that the homes are of high standard which is important to the tenant as well as the investor.

Under the Section 8 program, every year each house is re-inspected by the Section 8 inspectors to insure the high standard of housing. As a standard practice, Smart Homes renovations meet all Section 8 requirements providing the investor with the confidence and assurance they own high quality homes.