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Author: Mark Ainely | Partner GC Realty & Development & Co-Host Straight Up Chicago Investor Podcast
Determining rental pricing is already challenging in the Chicago market, but it becomes even more confusing when Section 8 inquiries start coming in, especially during slower leasing months. Many housing providers ask the same question, will a Section 8 tenant actually be approved at my asking rent, or am I wasting time going through the process?
In this Straight Up Chicago Investor Tuesday Tip episode, Mark Ainley breaks down how Section 8 rental amounts are actually determined in both the City of Chicago and the surrounding suburbs. The focus is on understanding payment standards, utilities, bedroom qualifications, inspections, and the common mistakes that cost landlords time and money.
Episode Summary
Mark explains that determining Section 8 rent depends heavily on whether the property is located in Chicago or in the surrounding collar counties. In the suburbs, landlords can look up payment standards by county and zip code to find the maximum allowable rent, while in Chicago the process relies on tenant-specific documentation like the rent burden sheet.
The conversation covers how utilities affect approved rent, why voucher bedroom size matters more than physical bedroom count, how bedroom measurements and ceiling height can disqualify units, and why getting rent clarity before inspection is critical. Mark also addresses common compliance issues, including illegal side payments and how to stay above board while maximizing income.
Questions We Answer in This Episode
Q: How are Section 8 rental amounts determined in the suburbs?
A: In the collar counties, landlords can look up Housing Authority payment standards by county and zip code. These standards show the maximum rent amount based on bedroom count, assuming the landlord pays all utilities.
Q: How do utilities affect approved rent?
A: If utilities are transferred to the tenant, the approved rent is reduced. A common rule of thumb is subtracting roughly $100 per utility from the maximum payment standard.
Q: How does rent determination work in Chicago?
A: In Chicago, landlords must request the tenant’s rent burden sheet from CHA. This document shows the maximum rent the tenant is approved for. Utilities must still be backed out to determine the true allowable rent.
Q: Does voucher size matter if the unit has more bedrooms?
A: Yes. Voucher size controls the approval, not the physical number of bedrooms. A tenant with a two-bedroom voucher will be capped at two-bedroom payment standards, even if applying for a three-bedroom unit.
Q: What qualifies as a bedroom for Section 8 in Chicago?
A: Bedrooms must be at least 70 square feet. Only floor space with a ceiling height of seven feet or more counts. Sloped ceilings, soffits, and low-clearance areas can disqualify rooms.
Q: Is a closet required for a bedroom?
A: No. A closet is not required, but ventilation is. Bedrooms must have some form of ventilation, even if it is a glass block window with an opening.
Q: Are inspections the same in Chicago and the suburbs?
A: Inspections follow HUD guidelines nationwide, but inspector interpretation varies widely. Turnover among inspectors creates inconsistency, especially in Chicago.
Q: Can landlords find out the approved rent before inspection?
A: Housing Authority of Cook County now provides rent determinations before inspections, which helps avoid wasted time and money. CHA has begun moving in this direction as well.
Q: Can landlords charge tenants additional rent outside the HAP contract?
A: No. Side payments are strictly prohibited. Violations can result in removal from the program, loss of eligibility for other HUD programs, and loan restrictions.
Q: Are there legal ways to earn additional income?
A: Yes, but only at market rates and through separate agreements. Parking, storage, and similar add-ons must be reasonable and defensible.
Show Notes
00:00 Why Section 8 rent questions increase during slower leasing seasons
00:55 How suburban payment standards work by county and zip code
01:21 How utilities reduce approved rent amounts
02:00 Using the CHA rent burden sheet in Chicago
02:42 Voucher bedroom size versus physical bedrooms
03:36 Why large vouchers are increasingly rare
04:33 Bedroom size, ceiling height, and inspection pitfalls
06:11 Ventilation requirements and common misconceptions
07:12 Inspection consistency and HUD guidelines
08:03 Getting rent determinations before inspection
09:32 Why side payments are illegal and unenforceable
10:25 Parking, storage, and allowable add-ons
11:31 Chicago fact and sponsor segment
Key Takeaways for Chicago Housing Providers
Section 8 rent approval depends on location, utilities, and voucher size, not just market rent.
Bedroom qualifications are strictly enforced in Chicago.
Getting rent clarity before inspection prevents wasted time and money.
Side payments outside the HAP contract are illegal and risky.
Understanding the rules upfront makes Section 8 a viable strategy instead of a guessing game.
Guest: Mark Ainley, Straight Up Chicago Investor Podcast
Email the Show: StraightUpChicagoInvestor@gmail.com
Because finding good tenants and property management shouldn’t feel like online dating.
Dear Investor,
If you are an investor in either the city or suburbs of Chicago, I would love to speak with you about how we can help you on your real estate journey. At GC Realty & Development LLC, we help hundreds of Chicagoland real estate owners and brokers each year manage their assets with both full service property management and tenant placement services.
We understand that every investor’s goals are unique, and we love learning about each client’s individual needs. If there is an opportunity to help you buy back your time by managing your rental property or finding quality tenants, please check us out.
Best Investing,
Founder, Partner, Podcast Co-Host, and Investor
