Section 8

Section 8 is the federal Housing Choice Voucher program, in which a local housing authority pays part or all of a tenant's rent directly to the landlord.

Section 8 — formally the Housing Choice Voucher program — is a federal rental subsidy run by HUD and administered through local public housing authorities. A qualified tenant pays a portion of the rent based on their income, and the housing authority pays the rest directly to the landlord each month. Before a lease starts, the property has to pass the housing authority's inspection, and the rent has to be approved.

Investors are drawn to Section 8 because a large share of the rent arrives from a government payer on a schedule, and voucher tenants tend to stay put — turnover is one of the biggest hidden costs in rentals. For wholesalers, that demand is very real: on BuyBox Cartel, Section 8 deals are the single largest category, at roughly 53% of live listings, because buy-and-hold investors actively hunt for rent-ready voucher properties.

What beginners get wrong: assuming approval is automatic. The unit must pass inspection, the rent must fit the housing authority's limits for the area, and the paperwork moves at government speed — build that timeline into the deal. Landlords still screen tenants like any other rental. And every housing authority runs its own process, so learn how your local one actually works before promising a buyer a turnkey voucher property.