Key Takeaways
- Sellers can expect more competition this spring as the market heats up.
- Preparing your home for sale can help attract prospective buyers and potentially increase your home’s sales price.
- Buyers are looking to negotiate, so sellers should address needed repairs ahead of time.
Spring is one of the best times to sell your home. Homebuyers are coming out of winter hibernation with more room in their schedules since the holidays are over. They’re also watching the calendar, hoping to get into new homes before the next school year. You can still take advantage of the busy spring market, but enticing prospective buyers to put down an offer will take some work.
Why You Need to Prepare Your House for a Spring Listing
Kurt Carlton, president and co-founder of real estate investment marketplace New Western in Dallas, says sellers can expect more competition this spring. They still need to prepare their homes ahead of listing so the sale is more likely to close without lengthy negotiations.
“It may seem like spring will be a seller’s market but buyers have a budget and will be looking to negotiate,” Carlton says. “Even minor repairs can be deal-breakers, so sellers should address maintenance issues ahead of time to avoid giving buyers a reason to walk away or ask for a price reduction.”
Preparing your home for sale can also help attract more buyers and potentially hike its sales price. “Properly preparing your house for the market can increase your audience and showings and will also increase your sales price by as much as 20%, depending on the improvements,” says Greg Forest, senior global real estate advisor at Sotheby’s International Realty in Palm Beach, Florida.
6 Tips to Prepare Your Home for the Spring Real Estate Market
When preparing your home for the spring homebuying season, here are some tips experts say can potentially help you sell your home faster and for top dollar:
- Boost your home’s curb appeal.
- Make necessary repairs and renovations.
- Consider making cosmetic upgrades.
- Declutter and depersonalize.
- Do a deep clean.
- Stage your home.
Boost Your Home’s Curb Appeal
Your home’s exterior, landscaping and overall condition and appearance all contribute to its curb appeal. First impressions are everything in real estate and can have a major impact when you list your home for sale.
“The most straightforward and affordable way for sellers to boost curb appeal for spring is to power wash siding and sidewalks and keep the lawn mowed, edged and trimmed,” Carlton says. “A fresh paint job to the entire exterior of a home can get expensive, but clean gutters and a fresh-looking yard will go a long way.”
The entryway is another area that often needs attention. Pantea Bionki, owner and lead designer of Bionki Interiors based in Chino Hills, California, recommends adding vibrant flowers and greenery in pots around the front entrance. If you have a front porch, Bionki says adding cozy seating areas and rugs can create a more welcoming atmosphere.
Make Necessary Repairs and Renovations
Before making any repairs or renovations, consider whether they’ll add value, provide a good return on investment or help attract prospective buyers. Remodeling kitchens and bathrooms may seem like a good option, but Carlton encourages sellers to determine whether they’ll actually get a return on investment. He says homeowners should focus on functionality and curb appeal. “Repair anything that is obviously and visibly not functioning as it should before showing it to buyers,” he says.
A big mistake sellers tend to make is attempting to match the latest design trends or renovating according to their own personal taste, says Andrea Saturno-Sanjana, a broker at Coldwell Banker Warburg in New York City. “Renovations that are too specific often do not appeal to the widest range of buyers,” she says.
Saturno-Sanjana says sellers should consider repairs and refreshing items that are immediately visible to the buyers, as well as what might catch the attention of the home inspector. “For example, it might be less costly to replace loose wall switches before listing rather than to leave them as is for a buyer’s home inspector to view them as red flags, which might signal other problems with the home,” Saturno-Sanjana says.
Consider Making Cosmetic Upgrades
Sellers can make a big impact without paying a small fortune for renovations. “If sellers want a buyer to feel like their home is move-in ready, a fresh coat of paint on interior walls and exterior doors and windows is a high-impact option without construction,” Carlton says.
If you don’t want to spend a lot of time and money fixing up your home, put what you can in the entry foyer, says Sheila Trichter, a broker at Coldwell Banker Warburg. “A fresh coat of paint won’t cost a lot in what is typically a small space,” she says. “Bright overhead lighting, a fabulous print or some other striking art will all set the mood. You want the prospective buyer to be smiling.”
Declutter and Depersonalize
Your home may reflect your life, but you want new people to visualize it as their home. That means removing all the family photos, trophies and any political or religious decor items. Strive for a clean slate.
You’ll also want to declutter. That can be everything from magazines on a side table to the kids’ boots in the hall to your blender on the kitchen counter. The home needs to look sleek and minimalist. Put everything you can away, but don’t overfill closets because prospective buyers will look there, too.
Forest recommends using neutral colors and removing excess furniture to make the space feel more inviting. This will help buyers envision themselves in the space.
Do a Deep Clean
Do a thorough spring cleaning, inside and out. You’ll want to clean out closets, wash all the windows and have the carpets cleaned. Go room by room, but pay attention to the kitchen, bathrooms and outdoor spaces. “These spaces are where people spend their most time, so if they are unappealing it can be a turnoff to a potential buyer,” Forest says.
Stage Your Home
Staging doesn’t necessarily raise the value of your home, but it could entice prospective buyers to make a higher offer and increase the likelihood it will sell quickly. According to the National Association of Realtors’ 2023 Profile of Home Staging, 20% of sellers’ agents said staging a home increased the dollar value offered by homebuyers between 1% and 5% compared with similar homes on the market that were not staged.
However, try not to stage a home for a specific season. “Doing so risks letting the buyers know that the home has been on the market for an extended period,” Bionki warns. “While this information is available online, it is best to avoid drawing unnecessary attention to it. So, I discourage the use of seasonal pillows or decorations to maintain a timeless appeal.”
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It’s been one of the most challenging years on record for the housing market, with rock-bottom inventory and mortgage rates hitting highs not seen in the past two decades. If you’ve been hoping to buy or sell in the new year, you’re probably wondering if we’ll ever see any relief.
While we’re likely not entirely out of the woods yet, Zillow® economists predict 2024 will bring improvement on several fronts, including affordability. “This is our breather year,” Zillow Chief Economist Skylar Olsen says. “I expect the beginning of a long healing process to kick off in the housing market next year.”
What will this look like? For one, although homes will remain expensive in 2024, Olsen says, you’re likely to have more to choose from as sellers adjust to higher mortgage interest rates and list their homes in greater numbers.
Read on to learn what else our economists are expecting for the coming year, and what to know whether you’re buying, selling or renting.
1. Home buying costs will level off
After a year in which mortgage rates hit highs not seen in 23 years, buyers in 2024 are expected to get a little relief.
No one can predict what will happen to mortgage rates, but high inflation — which drove interest rate hikes in 2023 — continues to drop toward the Federal Reserve’s target. If the trend continues as expected, it would likely mean less volatility in mortgage rates. Meanwhile, wages continue to grow and home values are expected to remain stable, falling only 0.2% in 2024.
The combination of bigger paychecks, stable home prices and less volatile mortgage rates should provide breathing room for buyers struggling with affordability.
2. More homes will be listed for sale
After a year of low inventory, the housing market is finally getting more choice again. More sellers are expected to list their homes for sale as they come to terms with the fact that we appear to be in an era of higher mortgage rates.
A majority of mortgage holders (80%) are paying less than 5% interest on their home loan, having locked in the rates when they dropped to historic lows in 2021. Zillow research found that many homeowners who might otherwise sell were reluctant to do so because it would mean having to pay higher rates on their new home.
Any increase in listings will no doubt be welcome news if you’re shopping for a home. Not only will you have more options, but an increase in listings could help ease competition in the market, which in turn could help keep prices from climbing.
3. The new starter home will be a single-family rental
Would-be home buyers are looking for ways to get the amenities they want, whether that’s a private backyard or more privacy, even if a home purchase is out of their budget right now. Single-family home rentals answer that call, and are expected to become the new “starter home” as families rent for longer.
Given the expected demand for single family homes, some of the homeowners who have been thinking of selling could become landlords instead, boosting the number of single family homes for rent. New buyers could become landlords, too, as they look for ways to lower the cost of housing.
A recent Zillow survey found that 39% of recent home buyers say it’s very or extremely important that they have an opportunity to rent out part of their home for extra income while living in it. That desire is even higher among younger buyers: 55% of millennial and 51% of Gen Z homebuyers expressed the same sentiment in the survey.
4. Expect stiff competition for rentals near downtowns
Suburban rent growth still outpaces urban rents in 33 of the 50 largest metro areas in the U.S.* but the gap is narrowing, especially in areas with easy access to downtown office hubs. This is likely due to workers returning to downtown offices, and people seeking out amenities they might have avoided during the height of the pandemic.
In New York City, for instance, rental demand is surging in areas with easy access to Downtown or Midtown Manhattan, while areas farther from these neighborhoods are seeing relatively less demand, according to data from StreetEasy, Zillow Group’s New York City real estate marketplace.
Zillow economists predict other urban markets will follow suit. The good news for renters: A multifamily construction boom in 2023 brought a huge number of new rentals to the market, giving renters more options and increasing the likelihood that landlords will offer concessions to attract and keep them.
5. “Fixer” homes will become more attractive to traditional buyers
Homes in need of “TLC” are usually the target of “home flippers,” who remodel or spruce them up in hopes of quickly turning them for a profit. But higher home prices have made flipping harder to pencil out, so buyers looking for a primary home could face less competition from flippers than they might have in previous years.
This could be good news if you’re in the market for a fixer, which can be a great option if you’re buying your first home. Fixer-uppers are usually priced lower than comparable homes that don’t need work and could give buyers an opportunity to make improvements over time.
“Zillow data finds homes that need a little TLC sell for 3.1% less than similar homes,’’ says Zillow home trends expert Amanda Pendleton. But, she adds, “The lack of housing inventory is keeping prices elevated for all homes, even those that need work. Buyers have few options and may still have to compete for the few homes that are available, which can lead to higher sale prices.”
The question for buyers, she says, is whether the lower price is enough to cover the costs of improvements you may want or need to make after the sale closes.
When buying a fixer, it’s important to get an inspection so you know what you’re getting into. An outdated bathroom may bug you, but it’s not likely to pose the same risk as a termite-eaten support beam.
6. More home improvements will be done by homeowners
DIY is expected to get even more popular as home buyers squeezed by home prices and interest rates seek to improve their homes instead of moving. If you’re one of them, now might be a good time to get acquainted with your friendly neighborhood tool library and salvage businesses.
If you’re on the fence about what home projects you’re equipped to tackle, check out this article.
7. Home buyers will seek out nostalgic touches and sensory pleasures
Some of the trends we’re seeing in home design are centered around wellness and nostalgia.
Sensory gardens, Murano glass chandeliers, painted murals and cold plunge pools, are showing up in more listings, according to a Zillow analysis of home features and design styles mentioned in for-sale listing descriptions.
The brutalism design style, featuring things like concrete floors, is also making a comeback, and with pickleball becoming a national obsession, more listings are mentioning pickleball — likely highlighting their proximity to a court as a selling point.
8. Artificial intelligence will enhance home search and financing
Expect artificial intelligence to open new experiences for home buyers and sellers and their agents.
“Artificial Intelligence is already making the home buying and selling process easier through automation, personalization, and self-service,’’ says Josh Weisberg, Zillow’s senior vice president of artificial intelligence. “We expect to see an increase in tools and products that make home shopping more streamlined.”
For example, shoppers can now use a new AI-powered search feature called Natural Language Search to find homes on Zillow in the same way you might text friends and family, like “open house near me with four bedrooms.” AI also allows sellers to highlight their home’s best features and gives buyers a deeper understanding of a home before they ever step inside with panoramic photos that can be used to generate 3D Home Tours and interactive floor plans.
And, of course, there’s the Zestimate, which provides a starting point to understand what their home is worth, and uses deep learning techniques to capture market trends on a national level.
Expect more of those types of experiences in the future.
* Year-over-year changes, as of October 2023.
Did you know that there are nearly 1.5 million eviction rulings in the United States each year, according to research from Princeton University’s Eviction Lab? If you’re part of that 1.5 million, you may be wondering how you can even rent with an eviction on your record, how long do evictions stay on your record, and how can you find apartments with eviction forgiveness?
We answer these questions and more, including tips for winning landlords over so you can find your next rental home, regardless if you’ve been previously evicted.
What is an eviction?
An eviction is when a landlord forces a tenant to leave a property. Tenants can be evicted for violating terms in their lease, such as failing to pay rent on time, staying in the building past the end date of their lease, or having a pet when the building doesn’t allow renting with pets. Or, you may be evicted because the building needs to undergo lead removal or another procedure which requires tenants to move out.
How to find out if you have an eviction on your record
Because evictions are legal proceedings, evictions go on your legal record. They also show up on your rental history report and your background check. To see if you have an eviction notice, you can request a copy of your rental history report from a reputable credit reporting agency. Or, you can run a background check on yourself for any signs of poor rental history.
If you have a prior eviction on your record, don’t worry. There are still ways you can find your next rental home.
11 Ways to get an apartment with an eviction on your record
There are many steps you can take to increase your chances of getting an apartment with an eviction on your record.
1. Try to get the eviction removed from your record
The first thing you should try if you have an eviction on your record is to have it removed. This will make it much easier to rent future apartments or homes, regardless if you’re wanting to rent an apartment in Cordova, TN, or a rental home in Columbus, OH. If your eviction was due to owed rent or other costs where you were delinquent in payment, you can offer to pay off past balances to have your eviction erased. You can also have your eviction removed from your record if the eviction was done illegally, such as not giving you enough notice.
2. Talk to your previous landlord
Chat with your previous landlord and offer to pay any outstanding balances. In some cases, property managers may be lenient, and they may even agree to erase the eviction from your record if past debts are resolved. They may even be willing to provide you with a positive reference for your new apartment.
3. Improve your credit score
Most landlords look for their tenants to have a credit score above 670 and higher. The higher your credit score, the more likely your landlord is to discuss your previous eviction to better understand the circumstances and get a complete picture of you as a renter. Plus, they’ll trust you more to pay rent in full and on time if you have a good financial track record.
Some ways to get your credit score up quickly include paying off past debts, especially high-interest ones like credit card debt. If you have only one or two lines of credit, you may consider opening another line of credit too, as that can improve your score. Lastly, it’s important that you try not to use up more than one third of your credit limit every month. For example, if your credit limit is $3,000, keep your credit spending to $1,000 per month, and make sure you pay it off in full to ensure that your score continues to climb.
4. Offer to pay higher rent
Paying more rent each month won’t just pad your property manager’s pockets, it will make you a more attractive renter. By saying you’re willing to pay higher rent each month, you’re telling your future landlord that you are a financially responsible renter. That can go a long way, though they will probably want proof of your income or assets to prove you can afford paying higher rent.
5. Obtain references
Another great way to showcase yourself as an attractive renter is to list letters of reference in your apartment applications. You may want to consider asking an employer or even a previous landlord for a reference. They can vouch for your ability to pay rent in full every month as well as your ability to be a respectful tenant.
Your references can write letters for you, or you can list their emails or phone numbers alongside their names in your rental application. Make sure that they are prepared to make the case that your eviction was a one-time thing that won’t ever happen again. After all, property managers want to hear that you’ve corrected your past actions and that you’ll be a responsible tenant going forward.
6. Create a renter’s resume or cover letter
Creating a renter’s resume or cover letter is a great way to showcase your strengths as a renter. You should treat a renter’s resume like you would treat a resume for a job; make sure it is typed, organized, and that it makes the best case for you as a renter.
Some things to include in a renter’s resume or cover letter are your name, contact information, monthly income, and employment history, just like you would include in an employment resume, and reasons why you would make a great renter. This should help strengthen your case.
7. Prepare to be transparent and offer an explanation
Your new potential landlord will definitely want to know about the eviction on your record. If you can, explain your eviction as honestly and clearly as possible on the phone, in person, or in a cover letter.
After explaining your eviction, remember to make a case to your new landlord about why and how you’ll be a great tenant going forward. For example, if you were evicted because you had a problematic pet, offer to introduce your pet to the landlord. The bottom line is that the landlord wants to know exactly what happened and what you’re going to do to make sure it will not happen in their rental.
8. Consider renting from a private landord
Private landlords are just people who manage their own rental properties rather than having a property management company do it for them.
Private landlords are often more understanding of past evictions, or they may even own apartments with eviction forgiveness (more on this later). In general, renting from private landlords is a more personal experience than renting from a management company, which can work in your favor if you have an eviction on your record.
You can find properties owned by private landlords on social media sites as well as public marketplaces. Just be careful to vet the property beforehand to make sure that it is not a rental scam.
9. Get a guarantor, co-signer, or roommate
Another way to strengthen your case is to get a guarantor, co-signer, or roommate who has excellent credit and doesn’t have an eviction. If a landlord knows that you have someone who is willing to back you up, they will be more likely to believe that you will be a reliable renter. Also, they will be reassured that you will pay rent in full and on time.
10. Offer to pay monthly rent in advance for a new apartment
One way to make your case as a potential renter with an eviction is to offer to pay rent in advance for a new apartment. If you can offer your new property manager the first two or three months’ rent up front, they will be much more likely to trust that you are serious about the apartment and that you’ll be a reliable tenant.
11. Offer to pay a higher deposit
No matter what you were evicted for, offering to pay a higher security deposit can really strengthen your case as a prospective tenant. In order to make the most attractive offer, you’ll want to pay a few months rent up front as a deposit. It may be expensive, but paying a higher deposit is one of the best ways to make your case.
Does an eviction hurt your credit?
While an eviction doesn’t directly hurt your credit, if you were evicted for past-due rent or other unpaid financial charges, that can hurt your credit. Also, if late payments have been sent to collections, that can really take a toll on your credit score.
How long do evictions stay on your record??
Once you are evicted from a property, that eviction stays on your record for at least seven years and up to ten years if any past-due balances were sent to collections. The records that show your eviction are typically included in your background check, tenant screening report, rental history report, and credit report. And because eviction rulings are made by local courts, the eviction goes on your legal record.
How to get an eviction off your record
Whether you are renting in Minneapolis or Tampa, there are some ways you can go about getting an eviction removed from your record. You may need to call multiple people to have your eviction removed from all of your paperwork, such as your legal record and credit report.
Pay or settle your rental debts
First, as mentioned earlier, offer to pay or settle your past rental debts with your previous landlord. Then, they may be willing to remove the eviction from your records.
Ask to have collections removed from your credit report
Having collections removed from your credit report can help your credit score as well as potentially remove traces of your eviction and any other debts from your record. There are two ways you can have collections removed from your credit report. You can either ask for a goodwill deletion if you’ve paid off the outstanding debt, or you can dispute it if the collection on your report is an error.
Ask to have the eviction removed from your tenant-screening reports
Tenant screening reports are sometimes used by landlords to see if they want to rent to you. If you have paid off your debts with your previous landlord or reached another settlement, you can ask them to remove the eviction from your tenant screening reports. You may need to follow up with a collections agency too to confirm that your landlord sent any owed balance to collections.
Dispute errors
In the event that an error was made by your landlord, credit bureau, or collection agency, you can dispute the errors to have the eviction removed from your record.
There are many ways an error can be made in the eviction process. For example, your landlord may not have given you proper notice for the eviction or filed the appropriate paperwork. Also, credit bureaus and collection agencies may report charges in an incorrect amount or possibly make another error.
To have your eviction removed from your record, you can dispute any errors made with your landlord, credit bureau, collection agency, or other company. If you can get the eviction removed, getting a rental will be a lot easier.
Take your eviction to court
If you believe you were wrongfully evicted, you can take your eviction to court to have it removed from your record, such as if you were wrongfully evicted due to discrimination, which is in violation of the Fair Housing Act
You can take your eviction to court if your landlord violated any rules regarding evictions. And if you win, your eviction should be removed from your record.
The bottom line for renting with an eviction
Although it isn’t easy to rent with an eviction, there are many ways to navigate how to rent with an eviction on your record. And, there are plenty of ways to have the eviction removed from your paperwork as well.
Redfin does not provide legal, financial, or tax advice. This article is for informational purposes only, and is not a substitute for professional advice from a licensed attorney, financial advisor, or tax professional.
Section 42 housing is a type of subsidized housing intended to assist renters with low income get safe, affordable housing. To qualify for a Section 42 apartment, you must meet income requirements, namely, you must make less than a percentage of your county’s average mean income (AMI) as defined by your local Department of Housing and Urban Development (HUD).
Section 42 housing was created as part of the Tax Reform Act of 1986. The subsidy comes in the form of a tax credit given to your landlord. Your landlord receives the credit by earmarking the unit as affordable housing and renting it for less than market rate. Plus, they must comply with special requirements and submit to regular screening to ensure the home is well-maintained.
Ready to learn more? Here’s our comprehensive guide to section 42 living and how to qualify for an affordable apartment.
Who is eligible for Section 42 housing?
If you want to live in section 42 housing, you must meet the income and asset qualifications based on the size of your family. Qualifications will look like this:
- Your income must be no less than 30 percent and no greater than 50 percent of your area’s median income limits as defined by HUD.
- Your assets must be under the threshold defined by HUD for your area, which include checking and savings accounts, certificates of deposit, money market accounts, stocks, bonds, mutual funds, and retirement accounts.
Because these qualifications depend on your income and assets, you’ll need to submit financial statements, including income verification, to qualify. You’ll also need to recertify your eligibility yearly, as the subsidy is an annual tax credit. You should notify your landlord or property manager immediately if your income changes.
Because eligibility depends on your family composition, you’ll need to send a written notification if your household size changes. A new dependent may open up more affordable housing options, for example.
In addition to family size and income, eligibility can also be affected by residency status and if you have a criminal record. Legal residents, permanent residents, and naturalized citizens are eligible for section 42 housing.
How is low-income housing calculated?
Incomes for section 42 must be less than fifty percent of your county’s average mean income, also known as AMI. It’s important to remember that section 42 requirements are not the same from one county to the next because all county’s have a different AMI. You will also need to research your local HUD’s requirements and programs.
Low-income housing is typically based on a simple calculation similar to this:
Percentage x AMI = Income Cap
For example, if your city’s section 42 income restriction is 50 percent of AMI, and your city’s AMI is $48,000, the highest annual gross income you can make is $24,000. The calculation looks like this:
50% x $48,000 = $24,000
Most of the time, section 42 housing has a floor set at 30 percent of AMI, meaning people earning less than 30 percent of AMI are eligible for additional housing assistance, mainly section 8 housing or similar programs. It’s possible to qualify for both section 8 and section 42, but you cannot use both programs simultaneously. Here’s a closer look at the difference between section 8 and section 42 housing assistance.
How Section 42 differs from other rent assistance programs like Section 8
Section 42 and section 8 are affordable housing programs offered by the federal government and intended to assist people with little to no income. But you should be aware of several important distinctions between the two.
The Housing Act of 1937 created section 8 housing for people with very low income. People who qualify for section 8 pay 30 percent of their income toward rent, and the government pays the remainder of the rent. As a tenant’s income fluctuates, so does their rent payment. To apply for section 8, you must apply with a public housing agency (PHA) office.
Section 42 housing is for people who aren’t very low-income but could still greatly benefit from housing assistance. Section 42 tenants pay a rent amount determined by HUD guidelines and the landlord, but this amount is capped. The cost of utilities is accounted for when determining rent prices, though the rent payment doesn’t usually cover all utilities. To apply for section 42, you can apply through your landlord or property manager.
Though typically funded by the federal government, affordable housing programs are administered on the state and local levels. So policies, income caps, and other specifics can vary from state to state. Depending on where you live, more affordable housing programs may be available through local governments.
How to apply for Section 42 housing
Before deciding on section 42 housing, assess your situation. Calculate your income using your pay stub or tax returns, and look up local HUD guidelines for affordable housing. You want to make sure that you meet the eligibility requirements. You’ll also want to gather all the information you need to complete the rental application process, including your financial statements.
During the application process, you’ll need to provide information, such as your name, gender, social security number, birth date, and citizenship status. Non-citizens are also eligible to apply. These are reporting requirements set by the government and are not a violation of equal opportunity laws. You’ll also be required to submit income verification, such as your tax returns. Take your time filling out the application, as errors can delay the process or result in rejection.
If you’re eligible, you will continue to move through the leasing process.
Your landlord may have additional responsibilities regarding screening and other requirements towards your application. Don’t be afraid to ask your landlord questions to ensure you do your part of the process correctly.
Benefits of Section 42 housing
Beyond the low cost, a huge benefit of section 42 apartments is that they’re usually located in areas with higher rents that are too expensive on average for low-income people. Residents who would otherwise be pushed away now have affordable access to the area’s amenities and local job market.
You’ll also be able to rely on your landlord or property manager to take good care of your apartment unit. The unit must comply with certain maintenance and safety requirements for your landlord to receive the tax benefit. That means no broken appliances or out-of-date fire extinguishers. Or at least quickly repaired or replaced by your landlord.
Finally, the landlord takes care of many of the utilities in a section 42 apartment. Though internet and electricity are not typically included, you could save on bills such as trash collection, gas, and non-electric heating.
Drawbacks from Section 42 housing
Section 42 housing is in short supply in most places, so finding a unit may be difficult. Some extra effort is also needed to navigate the affordable housing system. You’ll need to prepare and submit additional paperwork, and you’ll need to stay on top of any changes to your income or family size.
Discuss even small changes in your income with your landlord or property manager, like taking a part time dog walking gig. They will be able to give you some guidance to ensure that you remain eligible for the program.
FAQs on Section 42 Housing
Section 42 housing is a national program that’s deployed a little bit differently in every area it serves, so things can get confusing. Here are answers to some of the most commonly asked questions about section 42 affordable housing.
What are assets?
Assets are possessions that hold value. Examples of assets include money in a checking or savings account, vehicle, and retirement savings. When it comes to subsidized housing requirements, HUD only places limits on assets that generate an income, such as a high-yield savings account. Your car, clothing, furniture and other personal belongings will not count toward your limits.
What is compliance?
Compliance is the act of adhering to principles, rules, and guidelines set forth by an entity. In the case of section 42 housing, both renters and landlords need to comply with the principles, rules, and guidelines set forth by HUD. For renters, compliance includes meeting income restrictions and residency requirements.
Noncitizens, citizens, and permanent residents, often meet residency requirements, so don’t let your citizenship status deter you from seeking assistance. Mixed-eligibility households can still qualify for partial benefits, just understand your county’s or city’s local guidelines.
How is the maximum income level determined and what counts as income?
Maximum income levels are dependent on the average incomes in your area. Hud provides an income limits dataset that makes it easy to see the limits the organization has set for your area.
You calculate your total income by adding together any source of income, which can include:
- Wages
- Child Support
- Alimony
- Social Security
- Pension
- Retirement accounts
- Interest-bearing accounts
How is rent determined?
Rent for section 42 apartments is determined by guidelines set by HUD. Rent is calculated based on the number of bedrooms and the area median income (AMI).
- Each bedroom is considered to be 1.5 occupancy, with a studio apartment set as a one person occupancy.
- Rent is 30 percent of the AMI based on the household size.
For example, a two bedroom apartment in an area where the AMI of a three-person household is $48,000 would be rented for a maximum of $1,200.
($48,000 x 0.3 ) / 12 months = $1,200 monthly rate
In most metro areas, HUD will have a price list available on your local government website where the calculations are done for you.
What happens if my income and family size changes?
Every year you need to recertify that your income and family size meet the guidelines of the program. This recertification ensures that you are eligible for section 42, and it enables your landlord to continue receiving a tax subsidy.
Can an additional person move in?
If your household makeup changes at any time during your lease, you need to notify your landlord or property manager in writing immediately. Your household size and income affect your eligibility. Remember that your landlord is dependent upon your eligibility in order to receive the annual tax credit, so your lease may have special requests if you want to bring another person into your home. It may make sense to discuss your intentions with your landlord before letting someone move in.
Final thoughts
Section 42 housing is a great program for renters and landlords alike. For those who qualify, the lower and stable rent costs are worth the additional compliance requirements. For a successful affordable housing rental experience, be sure to take the time to research local guidelines and prepare the documentation you’ll need beforehand. Your local HUD office should have additional information and resources.
Redfin does not provide legal, financial, or tax advice. This article is for informational purposes only, and is not a substitute for professional advice from a licensed attorney, financial advisor, or tax professional.