Section 8 Investing in Alabama: What Every Investor Needs to Know with Daisy Sebastian

Why this episode matters for affordable housing investors

If you’ve ever wondered how Section 8 really works for landlords, or where the best markets in Alabama are for investing, this episode of the Affordable Housing & Real Estate Investing Podcast with Kent Fai He is a must-listen.

Our guest, Daisy Sebastian, is a property manager in Birmingham, Alabama. In just two years she has built a reputation for helping both investors and tenants navigate the complexities of Section 8 housing. Daisy shares how she dropped out of college to pursue real estate, the systems she uses to screen tenants, and what every out-of-state investor should know before buying in Alabama.

Her insights pull back the curtain on myths, reveal the hottest submarkets, and explain the exact steps housing authorities require before a tenant can move in.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

What are the hottest Section 8 markets in Alabama right now?

Investors consistently ask where the demand is strongest. Daisy points to Fairfield, Hueytown, Midfield, and Centerpoint as the most sought-after areas.

• Fairfield, Hueytown, and Midfield are within a 30-minute range of each other and attract families because of nearby shops, schools, and amenities.
  
  

• Centerpoint, while quieter and located further north of Birmingham, appeals to tenants looking for stability.
  
  

Tenants in these areas want walkability and convenience. As Daisy explains, families prefer neighborhoods where grocery stores, fast food, and shops are within a five-minute drive so they don’t waste gas.

How long does it take to place a Section 8 tenant?

One of the biggest misconceptions is timing. Many investors believe a Section 8 tenant can be moved in within two to three weeks. Daisy sets the record straight: the process typically takes one to three months.

Here’s why:

1. Tenant applies and submits a RAFTA packet (Request for Tenancy Approval).
   
   

2. Property manager completes and endorses the 28-page form, then faxes it to the housing authority.
   
   

3. Housing authority responds with either a RAFTA receipt (rent approved) or a max rent agreement (lower than requested).
   
   

4. Owner must accept or decline.
   
   

5. If accepted, property is placed on the inspection list, which can cause long delays.
   
   

Investors who plan ahead for this timeline will avoid frustration and unnecessary stress.

What do Section 8 families look for in a home?

Section 8 renters are overwhelmingly hardworking families—not the stereotypes often portrayed in media. Daisy emphasizes their priorities:

• Kitchens first: Most tenants are mothers who cook daily. Counter space and storage matter more than trendy finishes.
  
  

• Bathrooms matter: Families want more than one bathroom. Teenagers especially dislike sharing.
  
  

• Space and layout: Vouchers typically allow one bedroom for two children, so multi-bedroom homes are in high demand.
  
  

If investors want their homes leased quickly, targeting properties with two bathrooms and functional kitchens is a smart strategy.

How should landlords screen Section 8 tenants?

Daisy’s property management team uses Tenant Turner and Buildium for showings and screening. The process includes:

• Verified ID and location check before granting access.
  
  

• Full credit, background, and eviction checks.
  
  

• Flexibility based on rent coverage: If Section 8 pays 100%, credit is not reviewed. If partial rent is required, credit must be fair or better.
  
  

• Strict policy: No felonies and no prior evictions.
  
  

This consistency ensures compliance with fair housing laws and sets clear expectations.

How long do Section 8 tenants stay in Alabama rentals?

Daisy reports that Section 8 tenants in Birmingham typically stay three to seven years. Retention depends heavily on how investors and property managers treat their tenants.

Her team emphasizes communication, quick responses to maintenance requests, and respectful treatment. This not only keeps tenants happy but also provides investors with stable, long-term cash flow.

Key Insights for Section 8 Investors

• Expect 1–3 months to place a tenant, not two weeks.
  
  

• Focus on family-friendly markets like Fairfield, Hueytown, Midfield, and Centerpoint.
  
  

• Invest in kitchens and bathrooms—these are top priorities for tenants.
  
  

• Screen tenants consistently while allowing flexibility for full-coverage vouchers.
  
  

• Strong communication with housing authorities can speed up responses.
  
  

Best Quotes from Daisy Sebastian

“This process can take between one to three months to get a Section 8 tenant in the property.”

“The majority of Section 8 tenants will be mothers, and they love to cook. The kitchen has got to be their top one.”

“These tenants will stay three to seven years in these properties as long as you take care of them and comply with them.”

“At all times you need to first listen to why they’re upset. Sometimes tenants just want to know you understand.”

FAQs about Section 8 in Alabama

How long does it take to get approved for Section 8 housing as a landlord?
It usually takes one to three months, depending on inspections and housing authority timelines.

Which areas in Alabama are best for Section 8 investing?
Fairfield, Hueytown, Midfield, and Centerpoint are currently the hottest markets.

What upgrades should I prioritize for Section 8 homes?
Invest in kitchens, storage, and at least two bathrooms. These features make homes more attractive to families.

Do Section 8 tenants really stay long-term?
Yes, most tenants stay three to seven years if treated fairly and if maintenance is handled promptly.

Is tenant screening different for Section 8?
Yes. If rent is fully covered, credit checks are not required. If tenants pay a portion, credit and income are reviewed.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.