Buy a house to rent to my mother?

Joey B: Buy a house to rent to my mother?
My wife and I are looking into buying an investment house to rent. My mother rents a townhouse with most of the rent being subsidized by the state (Section 8 is what I believed it’s called).

Is there any problems with buying a house and renting to my mother, especially since the state pays most of her rent.

I’m not sure of the legal ramifications of that situation or if it is even legal.

Answers and Views:

Answer by someone
It is NOT permitted to rent from relatives using Section 8

Answer by real estate guy

I would talk with the local HUD office and see what the rules are. Maybe if the rental is in a LLC, you could.

Answer by the kid
You can’t use Section 8 to rent from a relative, for obvious reasons.

Answer by Flower
Yes, you have a problem. You as a landlord cannot accept Section 8 voucher from a relative or family member. That is how the program is set up. It is obvious why — people would rent to a relative and not charge them any money and the Housing Authority is paying you 2/3 of the rent for nothing.

You might look into the reduced-rent type of tax credit program in which she can pay a lower rent and possibly have that subsidized. There are other programs beside Section 8.

Answer by Landlord
This is not legal, it is a felony in fact, welfare fraud.

She can not rent from anyone she is related to.