Section 8 Landlord ROI Calculator: Is Accepting Vouchers Worth It?
February 19, 2026 • Investment Analysis Team
The True Cost of Vacancy
Typical turnover costs: Lost rent (1 month) ~$1,500, cleaning ~$400, marketing ~$200, background checks ~$75, minor repairs ~$350 = $2,000-3,000 per turnover.
Section 8 vs. Market Rate
Market Rate: 1-2 year average stay, 5-10% vacancy, ~95% payment reliability. Section 8: 4-6 year average stay, 2-4% vacancy, 99%+ payment reliability (HAP portion).
Sample ROI Calculation ($1,500/month rent)
Market Rate: $18,000 gross - $1,440 vacancy (8%) - $1,000 turnover = $15,560 net. Section 8: $18,000 gross - $540 vacancy (3%) - $500 turnover - $150 inspection = $16,810 net. Section 8 Advantage: $1,250/year (+8%)
Beyond the Numbers
HAP payments: never bounce, never late, continue during recessions. Tenants: motivated to pay, maintain property, follow rules, stay long-term. Inspections: catch issues early, document condition, maintain value.