Perhaps a few years ago, you rented out homes without any thought to housing vouchers because you made a decision not to rent to people who had Section 8 benefits or were participating in other housing programs. That was your option, then.
Now, things are different. The law does not allow you to reject these tenants without screening them. Potential residents can use their housing vouchers as income when they’re applying for your property, so you must give them the same opportunity that you provide to other potential residents. And, if they’re qualified, you cannot use their voucher status as a reason to deny them.
This means that you need to be up to date on Oakland’s housing voucher program. The Oakland Housing Authority (OHA) offers a few different programs, most of which provide rent subsidies to residents who qualify. These programs are dependent on funding, so there are waiting lists for the tenants who need help with housing but have not accessed benefits yet.
We’re providing a brief guide on the voucher programs you need to know as a landlord in Oakland. If you need any help navigating this part of the housing system, make sure you reach out to an Oakland property manager. We understand the risks and the challenges of these programs, as well as the potential benefits to rental property owners.
Housing Choice Voucher Program (aka Section 8)
When a tenant qualifies for Section 8 housing, or the Housing Choice Voucher Program, The Oakland Housing Authority subsidizes a portion of the rent that the tenant pays to a private landlord. These are federal funds from the Department of Housing and Urban Development (HUD), which are managed by OHA.
A tenant who has a Section 8 Voucher is free to find their own rental unit in any neighborhood. Once they qualify for the program in Oakland, they have to live here for a year, and then they can continue using their voucher even if they move out of the city or the state. =
What’s important about this voucher program is that it moves with the tenant. It’s not tied to your property or any particular property.
Project-Based Housing Voucher Program
The Section 8 program isn’t the only housing voucher game in town.
Unlike Section 8, the Project-Based Housing Voucher program is attached to the residence, not the tenant. So, you might have a resident who lives in a unit that’s part of the program. They have their rent subsidized, just like with Section 8. However, that subsidy does not leave when the tenant leaves the property. They’ll have to stay in place in order to continue receiving housing benefits.
Residents of these rental homes pay a portion of their rent and OHA also pays a portion to the property owner on behalf of the tenant.
Public Housing in Oakland
Tenants who qualify also have the option to move into public housing. The Oakland Housing Authority owns and operates a number of small and large apartment buildings throughout the city, and these public housing sites offer tenants rents that are below-market. Or, if there is a building that maintains market rents, a subsidy is provided for the public housing tenant who cannot afford the full rent.
No vouchers are used in the Public Housing units. Tenants often stay in place unless they leave the public housing program or their circumstances change in a way that moves them out of the public housing system.
Voucher Payments and Limits in Oakland
How much money are we really talking about when we’re talking about the housing vouchers provided to tenants in Oakland?
According to the Oakland Housing Authority:
- The Payment Standard is defined as “the maximum monthly assistance payment for a family assisted in the voucher program (before deducting the total tenant payment by the family)” [see 24 CFR 982.4(b)].
- The Payment Standard for a family is the lower of (1) the payment standard for the family unit size, which is defined as the appropriate number of bedrooms for the family under OHA’s subsidy standards [24 CFR 982.4(b)], or (2) the payment standard for the size of the dwelling unit rented by the family.
Here’s where the payment standards were in 2022:
| Bedrooms | Payment Standards |
| 0 | $1,846 |
| 1 | $2,225 |
| 2 | $2,729 |
| 3 | $3,607 |
| 4 | $4,294 |
| 5 | $4,938 |
| 6 | $5,678 |
Benefits to Renting to a Tenant with an Oakland Housing Voucher
A lot of rental property owners find it risky to be renting to tenants who use housing vouchers, but there are actually a few benefits to this tenant population. The largest risk is in handling the program requirements, and if you’re working with an Oakland property manager who has experience with Section 8 and housing vouchers, there isn’t much to worry about.
Here are some of the advantages to tenants who have housing vouchers:
- Consistent rent collection. Rent is paid consistently. Your Section 8 tenants are unlikely to be late with their rental payments because all or most of the rent comes directly from the government. Once an applicant is approved for Section 8 housing and passes the government’s screening criteria, they receive a voucher that’s usually going to cover 70 to 100 percent of their monthly rent. Your rental income won’t be dependent on your tenant’s job security or financial stability. There will be an initial processing delay when you accept a Section 8 tenant, but once that comes and goes, you can expect on-time rental payments in full from the government. It’s hard to find that kind of consistency and stability with even your most highly qualified private paying tenants.
- Incentive to maintain your property. A lot of owners worry about the inspection requirements. It can feel intrusive to have inspectors poking around your property before you rent it out, asking you to make repairs that you may not feel are necessary. However, this can also be a benefit. It means your rental property is in excellent condition. There’s not going to be any deferred or unreported maintenance hiding out. That’s good for your tenants and it’s also good for your property value.
Renting through Oakland’s housing voucher program isn’t as complicated as you may fear. Let’s talk more about it. Please contact us Marquardt Property Management. We provide expert property management in Oakland, the East Bay and in surrounding communities like Hayward, Pittsburg, and Concord.
