Rex says
Money math without the spreadsheet headache. Plug in your numbers and I'll show you exactly where the dollars land.
Try a scenario
Click to load — tweak from there.Inputs
Result
Section 8 net advantage over market
-$380
Section 8 net annual income
$17,492
Market tenant net annual income
$17,872
Section 8 gross collected
$18,042
Market gross collected
$18,972
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How to use this
- 1Enter section 8 monthly rent (contract rent) ($).
- 2Enter market monthly rent ($).
- 3Enter section 8 vacancy rate (%).
- 4Enter market tenant vacancy rate (%).
- 5Enter avg years per section 8 tenant.
- 6Enter avg years per market tenant.
- 7Enter typical turnover cost ($).
- 8Read your section 8 net advantage over market on the right — it updates as you type.
- 9Hit Share to keep the scenario or send it to someone.
About this calculator
Section 8 (Housing Choice Voucher) tenants often pay rent below the top of the local market, but they come with guaranteed payment from the housing authority for the subsidized portion, typically longer average tenancies, and in many jurisdictions a required annual HQS inspection. Market-rate tenants may pay more but carry more payment risk and, in a soft market, higher turnover and vacancy. This calculator nets out both paths using your own vacancy, turnover, and default assumptions so the comparison isn't just about the headline rent number, which is the mistake most landlords make when they dismiss vouchers outright or accept them without adjusting their assumptions.
Worked example
Using the values the calculator loads with:
Inputs
- Section 8 monthly rent (contract rent): 1550 $
- Market monthly rent: 1700 $
- Section 8 vacancy rate: 3 %
- Market tenant vacancy rate: 7 %
- Avg years per Section 8 tenant: 4
- Avg years per market tenant: 2
- Typical turnover cost: 2200 $
Results
- Section 8 net advantage over market: -$380
- Section 8 net annual income: $17,492
- Market tenant net annual income: $17,872
- Section 8 gross collected: $18,042
- Market gross collected: $18,972
What each field means
Inputs
- Section 8 monthly rent (contract rent) ($)
- The section 8 monthly rent (contract rent) used in the calculation, measured in $. Starts at 1550 $ so you have a working example on load.
- Market monthly rent ($)
- The market monthly rent used in the calculation, measured in $. Starts at 1700 $ so you have a working example on load.
- Section 8 vacancy rate (%)
- The section 8 vacancy rate used in the calculation, measured in %. Starts at 3 % so you have a working example on load. Accepted range: 0–50 %.
- Market tenant vacancy rate (%)
- The market tenant vacancy rate used in the calculation, measured in %. Starts at 7 % so you have a working example on load. Accepted range: 0–50 %.
- Avg years per Section 8 tenant
- The avg years per section 8 tenant used in the calculation. Starts at 4 so you have a working example on load. Accepted range: 0.5–15.
- Avg years per market tenant
- The avg years per market tenant used in the calculation. Starts at 2 so you have a working example on load. Accepted range: 0.5–15.
- Typical turnover cost ($)
- The typical turnover cost used in the calculation, measured in $. Starts at 2200 $ so you have a working example on load.
Results
- Section 8 net advantage over market
- Returned as a money amount in US dollars and shown as the headline result. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Section 8 net annual income
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Market tenant net annual income
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Section 8 gross collected
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
- Market gross collected
- Returned as a money amount in US dollars. It recalculates instantly whenever you change an input, so you can compare scenarios without reloading.
FAQ
Is Section 8 rent guaranteed?
The housing authority's portion is paid directly and reliably as long as the unit passes HQS inspection and stays in compliance, which is the main appeal. The tenant's portion (often 30% of their income) is still their responsibility and can go unpaid like any other rent, so it's not a 100% guarantee.
Do voucher tenants really stay longer?
HUD data and many local housing authority studies consistently show longer average tenancies for voucher holders than market tenants, largely because moving means re-qualifying paperwork and finding another landlord willing to accept the voucher, which raises the switching cost for the tenant.
What's the catch with Section 8?
Annual HQS inspections can flag items a market tenant would never mention (window screens, smoke detector count, peeling paint even in non-lead-risk areas), payment processing sometimes lags 30-45 days after initial approval, and contract rent is capped by the housing authority's payment standard, which may sit below true market in hot rental markets.
Can a landlord refuse Section 8?
It depends on your state and city — a growing number of states and localities (including California, New York, and many major cities) prohibit source-of-income discrimination, making refusal to accept vouchers illegal. Check your local law before assuming you can decline vouchers as a matter of policy.
Accuracy and limitations
- Results are estimates before tax, fees, and inflation unless an input explicitly covers them.
- Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.
- This is educational maths, not financial advice. Check anything contractual with the lender or your accountant.
Related tools
Cite this calculator
Writing about this topic? Grab a citation — every link helps keep these tools free.
RevenueLab. (2026). Section 8 vs Market Rent Calculator. Retrieved from https://www.revenuelab.fyi/toolbox/section-8-vs-market-rent
<p>Source: <a href="https://www.revenuelab.fyi/toolbox/section-8-vs-market-rent" target="_blank" rel="noopener">Section 8 vs Market Rent Calculator — RevenueLab</a> (2026).</p>
Source: [Section 8 vs Market Rent Calculator — RevenueLab](https://www.revenuelab.fyi/toolbox/section-8-vs-market-rent) (2026).