Section 8 in Florida

Part 1: The Federal Shakeup

President Trump’s latest budget proposal aims to dramatically reduce the federal government’s involvement in housing, especially through HUD. The proposed budget includes a 40% cut to rental assistance programs like Section 8, a shift toward state-controlled block grants, and a 12% reduction in homelessness funding. That’s big news for real estate investors, particularly those in affordable housing or multifamily sectors.

The reason for the change? According to the proposal, the administration wants states to have more control over housing aid. Instead of relying on a national system, the funding would be split into block grants and given to each state to handle however they see fit. That means every state could have its own unique rules, limits, and systems, and there wouldn’t be one standard anymore. For landlords who rely on consistency and predictability, this introduces a major new challenge.

Currently, there are long waitlists across the country for Section 8. In places like Miami-Dade, Florida, tenants can wait up to 8 years. In Buffalo, New York, Belmont Housing Resources has had its waitlist closed for a while. Even in New York City, over 600,000 people applied in a single lottery. There simply aren’t enough vouchers to go around.

Only about 25% of eligible households currently receive vouchers. That leaves millions without support, even as rents rise faster than wages. Investors recognize that a major reduction in these programs could push thousands of tenants into financial distress, especially those already living paycheck to paycheck.

Part 2: What Investors Are Saying

Real estate investors are watching this closely—and not all of them are happy. Across forums like BiggerPockets, LinkedIn, and real estate Facebook groups, the sentiment is clear: these cuts could lead to increased default rates, higher vacancies, and lower property values in certain markets.

Here’s what the investment community is worried about:

• Tenant Risk: Without vouchers, tenants may not be able to pay their rent. This puts pressure on landlords and property managers to either collect or evict.

• Operational Headaches: Each state could implement different rules, making it tough for out-of-state investors and portfolio owners to manage consistently.

• Market Confusion: Changing cap rates and uncertain rent collection could drive values down, especially in affordable housing-heavy markets.

• Funding Gaps: Block grants don’t automatically increase with demand or rent growth. Once a state runs out of money, that’s it. Waitlists could grow even longer.

This instability creates hesitation among buyers and lenders. It affects underwriting, deal structure, and future planning. Investors who were planning on using housing vouchers as part of their rental strategy may now be rethinking that approach.

That said, some savvy investors see opportunity too. If others are panicking, there may be discounted deals coming to market. Landlords who no longer want to deal with the hassle might be willing to walk away at a discount. For investors with cash and strong systems, this could be a buying moment.

Part 3: What’s Likely to Happen in Florida

Let’s zero in on Florida. If this proposal becomes law, all signs suggest that Governor Ron DeSantis will take a very measured approach to handling any new housing funds. He’s not known for expanding welfare programs, and it’s unlikely he’ll simply replace every federal dollar with state money.

DeSantis has already backed initiatives like the Live Local Act, which focuses on incentivizing developers to create affordable housing close to job centers. The emphasis has been on workforce housing rather than long-term subsidies.

What DeSantis is likely to do:

• Tighten access to rental assistance with work requirements and time limits.

• Shift support toward programs like SHIP and SAIL that support developers, not just tenants.

• Encourage developers with incentives, tax credits, and streamlined zoning.

• Promote private-public partnerships that favor local decision-making and measurable outcomes.

• Prioritize efficiency and accountability.

In short, Florida may continue to support housing—but on its own terms. Investors should expect a system that favors landlords who can deliver clean, affordable housing to working tenants—not those banking on guaranteed government checks.

Part 4: My Take After 20 Years in Property Management

After managing properties for over 20 years, I decided long ago to step away from Section 8. It wasn’t about the money—it was about the headaches. Here’s what I experienced:

• Many tenants didn’t appreciate the help they received.

• Constant complaints, last-minute rent excuses, and entitlement attitudes.

• Poor upkeep of units, even after we put in new floors, appliances, and systems.

To be clear, I’ve seen a few landlords succeed with Section 8. But they run it like a military operation. They know how to screen applicants, set expectations, and follow through on consequences. If you’re not built for that, it can cost you your profits—and your peace of mind.

Do I think the program has value? Yes, in the right hands and for the right people. But I also believe there needs to be more accountability, both from the tenant and the system. I’ve had tenants who used the program as a launchpad, and that’s inspiring. But I’ve also had tenants who stayed in the system for years without any motivation to change their circumstances. That’s not helping anyone.

What I’d love to see is Florida take this moment to build something better. Something more targeted. Something that doesn’t just throw money at a problem, but measures success in tenant progress and property preservation.

Part 5: Advice for Investors Moving Forward

Here’s what I tell every investor today:

• Understand your local landscape: Don’t assume what’s true in Texas or Ohio will apply in Florida.

• Review your tenant mix: Are you too dependent on voucher tenants? Time to diversify.

• Prepare for new leasing strategies: You may need to pivot toward more conventional or mid-term tenants.

• Watch your bottom line: Rising maintenance costs, insurance premiums, and vacancy risks mean your cash flow projections need to be tighter than ever.

• Build community connections: Local housing authorities, nonprofits, and advocacy groups may become gatekeepers for new state-run programs.

And here’s a big one: Focus on tenant education. If you’re in this game long-term, it pays to help your tenants succeed. Show them how to apply for local support programs. Encourage them to attend workshops. Build goodwill now, before any crisis hits.

Bonus Insight: How This Affects Your Exit Strategy

If you’re planning to sell within the next few years, this change could impact your exit value. Buyers are going to look at stability and risk—just like you. If your income is heavily reliant on Section 8 or government support, be prepared to answer questions or accept a lower valuation.

On the flip side, if you’ve built a stable, diversified tenant base with strong cash flow and low turnover, you may actually look more attractive to future buyers as this shift rolls out.

Final Thoughts

Florida is one of the hottest real estate markets in the country, but it’s also evolving fast. Section 8 may not disappear overnight, but its role is clearly changing. Whether you’re a landlord, flipper, or private lender, now is the time to rethink your assumptions and get strategic.

This isn’t just about losing vouchers. It’s about understanding how government policy reshapes demand, tenant behavior, and investment performance. The investors who succeed in this new environment will be the ones who adapt early, study their markets, and take decisive action.

Keep it consistent, stay patient, stay true—if I did it, so can you! Ready to connect and strategize? Contact me at graystoneig.com/ceo – Jorge Vazquez, CEO of Graystone Investment Group & its subsidiary companies and Coach at Property Profit Academy.

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