| The Journal of Real Estate Finance and Economics | |
| Volume 20, Issue 1, Article 3 (Abstract) | |
| Title: | Housing Vouchers, Tenant Quality and Apartment Values |
| Author: | John D. Benjamin, Peter Chinloy and G. Stacy Sirmans |
| Abstract: | Landlords fact unique concerts in maximizing profits when they accept subsidized as well as unsubsidized tenants. Subsidized tenants tend to reduce overall tenant quality and to impose higher operating costs. By accepting subsidies, landlords may also subject themselves to periodict site inspections that may increase capital costs. Further, subsidized tenants may eventually crowd out unsubsidized tenants, lowering the average quality of the resident mix. Tests from Washington DC apartments on accepting and advertising for Section 8 tenants support these qualitative predictions. Accepting Section 8 tenants enhances revenues, but advertising for the lowers revenues. More aggressive solitication of subsidized tenants leads to a crowding out or displacement risk that dominates over any diminished collection risk. |
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