The Good and Bad of Section 8 Landlording: Lessons from Matt Parker

Why this episode matters

If you’ve ever wondered what it’s really like to own and manage Section 8 properties, this episode of the Affordable Housing & Real Estate Investing Podcast with Kent Fai He is a must-listen. Our guest, Matt Parker, is an Oregon Army National Guard member and investor who jumped into multifamily real estate with creativity, grit, and resourcefulness. From an eight-unit in Kentucky to navigating tenant challenges, Matt shares the wins, the struggles, and the lessons that every affordable housing investor needs to hear.

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.

How can new investors get started in affordable housing with limited resources?

Matt’s journey began the way many do: with a house hack. Using an FHA loan and only 3.5% down, he bought a duplex. But when he quickly ran out of capital, he asked the right question: How do I stay resourceful without large amounts of cash?

That search led him to creative financing strategies like subject-to investing and seller financing. Eventually, he secured an eight-unit apartment complex and a duplex in Kentucky with just 10% down—proving that action and persistence matter more than a big bank account.

What does it take to structure partnerships the right way?

Matt’s Kentucky deal required $72,000 down, money he didn’t have. By leveraging his network, he found a capital partner and structured a 50/50 equity split: the investor brought funds, and Matt handled everything else, including management.

Instead of relying on handshake promises, they built a detailed operating agreement covering worst-case scenarios. This level of transparency not only protects both sides but also makes partnerships stronger.

What are the good and bad parts of Section 8 landlording?

The good:

• Guaranteed rent: Section 8 payments arrive like clockwork, providing dependable cash flow.
  
  

• Tenant pipeline: Once approved, his entire building was added to the Section 8 system, meaning the housing authority refers tenants directly.
  
  

• Real impact: Matt rented to a woman who had been denied elsewhere but turned out to be one of his best tenants.
  
  

The challenges:

• Unexpected expenses: Within weeks of closing, five air conditioning units failed, costing $21,000—nearly a year’s worth of cash flow.
  
  

• Tenant issues: One renter stopped paying, forcing an eviction. Worse, the tenant left water damage behind, reminding Matt of the importance of due diligence and strong systems.
  
  

How do you self-manage rentals from out of state?

At first, Matt thought he needed a traditional property manager. But instead, he leaned on creativity: he hired a long-term tenant across the street as a part-time property manager for $15/hour. This saved hundreds each month compared to the standard 10% management fee.

She not only handled inspections and tenant coordination but also connected Matt with affordable, skilled maintenance workers from the nearby university. This grassroots approach turned out to be both cost-effective and reliable.

What mindset shifts help investors succeed despite setbacks?

Matt balances a full-time job, family responsibilities, and real estate investing. His “why” became clear when his daughter once told him, “You’re a stranger to me now.” That painful moment pushed him to restructure his work and prioritize investing as a path to long-term time freedom.

For him, it’s not about if financial freedom will come, but when. That mindset gives him the resilience to push through tenant headaches, costly repairs, and the grind of building a portfolio.

Key Insights from Matt Parker

• You don’t need piles of cash to start in affordable housing. Creative financing opens doors.
  
  

• Partnerships only work when agreements are clear and documented.
  
  

• Section 8 provides steady income and helps serve tenants in need, but you must prepare for inspections and maintenance.
  
  

• Out-of-state self-management is possible with local relationships and creative solutions.
  
  

• Resilience and a strong “why” carry you through the challenges of landlording.
  
  

Memorable Quotes

“I underwrote that eight-unit like it was a single-family home times eight. Sometimes simplicity works.”

“I told the seller I couldn’t put $100,000 down, and he still chose me because I was honest.”

“Section 8 pays on time, every time. That kind of reliability is hard to beat.”

“My daughter told me I was a stranger. That moment pushed me to change everything.”

Common Questions About Section 8 Investing

Is Section 8 reliable for landlords?
Yes. The housing authority pays its share directly each month, providing dependable cash flow even if tenants face financial hardship.

What are the downsides of Section 8 tenants?
Inspections can delay move-ins, and some units may require repairs to meet standards. But these inspections also ensure your property stays well-maintained.

How can investors manage out-of-state properties?
Build relationships with trustworthy local contacts. Matt saved thousands by hiring a tenant as a part-time manager instead of paying traditional property management fees.

What happens if tenants stop paying their share?
The housing authority continues paying its portion, but landlords may still need to evict if the tenant fails to cover their part. Strong leases and local support make this easier.

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.