Long-Term Rental
Estimated rent against vacancy, repairs, management and the loan, so you know if it cash flows before you call.
Learn about Long-Term Rental
Section 8
Hold the house as a Section 8 rental, with the rent started from HUD fair market rents and the cash flow worked out before you call.
What It Is
Section 8 is the federal Housing Choice Voucher program. A tenant with a voucher pays part of the rent and the local housing authority pays the rest straight to you. The rent the authority approves is capped near HUD's fair market rent for the area and the bedroom count, and the house has to pass an inspection first. Investors like it for the steady, government-backed rent.
How Propulator Handles It
- Paste a link or an addressThe analyzer pulls the property facts and market data, and tags anything it had to estimate.
- Start from HUD rentThe Section 8 tab starts the rent at HUD's fair market rent for the bedroom count, from the county or the ZIP code where HUD publishes small area rents, less 5% loss to lease.
- Set the loan and expensesLoan to value, rate and amortization, then vacancy, repairs, management, CapEx, taxes, insurance and HOA. Every number can be changed.
- Read the returnsMonthly and yearly cash flow, cash on cash and ROI for year 1 and year 5, with appreciation and debt paydown counted in.
Section 8 rental
Inputs
Purchase price$168,000
HUD FMR, 3 bedrooms$1,780
Loss to lease5%
Loan to value80%
Interest rate6%
Taxes, yearly$3,360
Insurance, yearly$1,680
Results
Real rent$1,691/mo
Mortgage payment$806/mo
Cash flow$245/mo
Cash on cash, year 18%
Sample numbers for a demo property.
From Numbers to a Deal
Save the analysis as a property or start the deal in one click. The deal keeps the seller, your offer, the activity log and the documents together, and moves across your pipeline as it goes.
Check the same house as a long-term rental or a creative finance deal on the Compare tab before you decide.
Related Deal Types
Seller Finance
Turn price, down payment and rate into a monthly payment and a term you can explain to the seller.
Learn about Seller Finance
Subject-To
Take over the seller's existing loan, with the cash to the seller, the payment and your fee worked out first.
Learn about Subject-To