To HUD or not to HUD, this is a difficult question. FatCat dose not have an answer. The only logical way to look at the option of rental market is from the money view.
However, before we dive any further, let's take a look at what is HUD?
The department of Housing and Urban Development section 8, provides low income family with rent assistance through a voucher program. Landlords accepts voucher issued by HUD as part of the rent owed usually refers to as HUD.
Reasons to accept HUD voucher:
1. HUD is never late on the rent. No landlord has ever received a phone call from HUD, say "eh, we are having a budget problem, is it OK I mail you the check on the 10th instead of 1st?"
2. HUD tenants are usually reasonable because they are afraid of losing the assistance.
3. There is no need to worry about the tenant break the lease because the rent payment does not go through the tenant.
4. In the case of eviction or lost of tenant for other reason, HUD will continue to pay its portion of the rent until the property is rent again.
Reasons Not to accept HUD voucher:
1. Any government program means a lots of (annoying) paper work, and (unreasonable) detail requirement on the property.
2. Government inspections means delay in process. Delay leads to vacancy which leads to lose of profit.
3. Certain HUD client seems to know exactly how to abuse the system.
4. Because HUD assistance is income bases, it attracts people with insufficient funds for security/cleaning deposit.
5. The actual rent is set by the government housing inspector, not the landlord.
