How Do Landlords Get Paid with Section 8? The Complete NYC Guide

You'll receive two separate payments each month: one from NYCHA deposited directly into your bank account, and one from your tenant paid however you've arranged with them. The housing authority's portion, called the Housing Assistance Payment or HAP, arrives via electronic funds transfer around the first of each month for as long as the tenancy continues. Your tenant's portion, calculated as roughly 30% of their adjusted household income, comes to you the same way any tenant's rent would, whether that's through Zelle, a check, or cash if you still accept it.

Understanding exactly how the money flows matters because the timing and mechanics differ substantially from conventional rentals, particularly for that first payment. Landlords who go in expecting Section 8 to work like a regular lease often find themselves frustrated by the initial delay, while those who understand the process plan their cash flow accordingly and avoid the stress entirely.

The Two-Payment Structure

When you rent to a Section 8 tenant, you're essentially getting paid by two parties who together cover your full contract rent. NYCHA calculates the split based on the tenant's household income and the applicable payment standards for your unit size and location. The tenant's share is designed to equal approximately 30% of their adjusted monthly income, though it can be slightly higher if they choose a unit where the gross rent exceeds the payment standard.

For a concrete example: if your approved contract rent is $2,500 per month and your tenant's calculated share is $600, NYCHA will pay you $1,900 via direct deposit and the tenant owes you $600 directly. If the tenant's income changes during the tenancy, NYCHA recalculates the split at their annual recertification, but your total rent stays the same unless you've requested and received approval for a rent increase.

This structure is why Section 8 provides such reliable income. Even if your tenant loses their job or has their hours cut, NYCHA adjusts its share upward to compensate, meaning you continue receiving your full contract rent regardless of what's happening in your tenant's financial life. The tenant's portion might drop to the minimum rent (currently $50 for NYCHA), but the housing authority covers the difference.

How NYCHA Pays You

NYCHA pays all Housing Assistance Payments exclusively through Electronic Funds Transfer. Paper checks were eliminated years ago, so you must enroll in direct deposit by completing the Section 8 Property Owner Registration form before any payments can begin. You'll provide your bank routing and account numbers, and NYCHA will deposit funds directly each month.

The payment schedule follows a predictable pattern. NYCHA processes payments using cut-off dates that typically fall around the 25th to 28th of the month preceding the payment effective date. For 2025, the schedule looks like this:

Any paperwork, certifications, or lease renewals that need processing must be completed before the cut-off date to be reflected in that month's payment. If you submit a rent increase request or resolve an inspection violation after the cut-off, the change won't take effect until the following month's payment cycle.

The First Payment: What to Expect

Here's where most new Section 8 landlords get surprised. Unlike a conventional rental where you collect first month's rent before handing over keys, the Section 8 payment process only begins after the tenant has moved in and all paperwork is finalized. The typical timeline from accepting a voucher holder's application to receiving your first HAP payment runs four to eight weeks, though it can stretch longer if there are inspection issues or documentation delays.

The sequence works like this: you accept the tenant's Request for Tenancy Approval and submit your rental packet to NYCHA. They schedule an inspection within five business days of accepting the packet. If the unit passes, NYCHA reviews all documentation, determines rent reasonableness, and sends you a HAP contract to sign. You execute the contract along with a lease with your tenant, return both to NYCHA, and they countersign the HAP contract. Only then does the payment process begin.

NYCHA has implemented what they call "Fast HAPs" with contract effective dates of either the 1st or 15th of the month to speed initial payments. But even with this improvement, you should expect to carry the unit without HAP income for at least one full month from when the tenant moves in. If your HAP contract effective date is the 15th and you're past that month's cut-off date, your first payment might not arrive until six weeks after move-in.

Plan your cash flow accordingly. If you're relying on rental income to cover mortgage payments, having a one to two month cushion before a new Section 8 tenant moves in prevents the initial delay from creating financial stress.

Managing the Owner Extranet

NYCHA's Owner Extranet Portal at eapps.nycha.info/Owners is where you'll manage nearly everything related to your Section 8 payments. Through this free portal you can:

• View monthly EFT payment statements showing exactly what was deposited and for which units
• Update your direct deposit banking information
• Track inspection certifications and submit completed repair forms
• Submit lease renewal requests and rent increase applications
• View tenant profile information and payment status
• List available units for rental to voucher holders

Registering for the Owner Extranet should be one of your first steps after deciding to accept Section 8 tenants. The portal gives you visibility into payment processing that you won't get any other way, letting you spot issues before they become problems and track the status of pending requests.

Rent Increases and Payment Adjustments

You can request rent increases on your Section 8 unit, but the process requires NYCHA approval and can only take effect at specific times. For existing tenants, you must submit a rent increase request at least 60 days before the new lease term's effective date. NYCHA will conduct a rent reasonableness evaluation comparing your requested rent to similar unsubsidized units in the area.

Even if your requested rent falls within the Voucher Payment Standards for your unit size and ZIP code, NYCHA may not approve it if comparable units rent for less. They use a third-party vendor, AffordableHousing.com, to determine rent reasonableness. If your request is denied, you can submit your own comparable rental data for reconsideration, though this doesn't guarantee approval.

When a rent increase is approved, it affects only the HAP portion of your payment since your tenant's share is calculated based on their income, not your rent amount. If your rent increases but your tenant's income stays the same, NYCHA's payment increases while the tenant's share remains constant. The mechanics here actually benefit landlords since you get more money without your tenant bearing additional burden, which tends to keep the tenancy stable.

Our Rent Increase Helper shows exactly how much additional income you could receive if your current rent is below the payment standard, making it easy to identify whether requesting an increase makes sense for your situation.

What Happens When Payments Stop

HAP payments can be suspended if your unit fails an inspection and you don't correct the violations within the required timeframe. Life-threatening violations must be fixed within 24 hours, window guard issues within 21 days, and all other violations within 30 days. If you don't meet these deadlines and don't submit acceptable documentation that repairs are complete, NYCHA stops paying until the issues are resolved.

Importantly, you cannot pursue the tenant for NYCHA's portion of the rent, even if payments are suspended due to issues at your property. The HAP contract is between you and NYCHA, and the tenant isn't responsible for the housing authority's share under any circumstances. However, you can still pursue the tenant for their portion if they fail to pay, and their continued non-payment is grounds for eviction proceedings and potential termination from the Section 8 program.

If a tenant moves out or abandons the unit, you must notify NYCHA immediately in writing. Continuing to accept HAP payments for a unit where the assisted tenant no longer resides constitutes fraud, which can result in repayment demands, termination from the program, and potential criminal charges. NYCHA takes fraud seriously, and their Inspector General's office actively investigates suspected violations.

The Security Deposit Question

Section 8 does not cover security deposits. You have the right to collect a deposit from your voucher-holding tenant just as you would from any other tenant, but the amount must not exceed what you charge non-Section 8 tenants and must comply with New York State limits (generally one month's rent for non-regulated units). The tenant is responsible for paying this out of pocket.

Some landlords hesitate to collect deposits from low-income tenants, reasoning that if someone qualifies for Section 8 they probably can't afford it. This is a mistake. The security deposit protects you against damage and unpaid tenant-share rent, and collecting it signals to tenants that you expect them to take care of the property. Most voucher holders are accustomed to paying deposits and expect to do so.

If damage occurs during the tenancy or the tenant leaves owing rent, you pursue them directly. NYCHA doesn't reimburse landlords for tenant-caused damage or unpaid tenant portions. The tenant is responsible for these amounts, and failure to pay can result in their termination from the Section 8 program, but you'll need to use standard landlord remedies (small claims court, collections) to actually recover the money.

Getting Started

If you're considering accepting Section 8 tenants or are in the process of leasing to your first voucher holder, understanding the payment mechanics upfront prevents surprises. The money is reliable once it starts flowing, but the initial setup requires patience and planning.

For landlords ready to start, listing your property on VoucherMatch connects you with qualified voucher holders actively searching for housing. We help you navigate the rental packet requirements and inspection process so you can get to that first HAP payment as quickly as possible.

Use our Pre-Inspection Checklist to ensure your unit passes on the first try, avoiding delays that push back your payment timeline. And check the Rent Analyzer to confirm your asking rent aligns with current payment standards before you submit paperwork.

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For Tenants: Understanding how your landlord gets paid helps you be a better tenant. Your portion of the rent is your responsibility, and paying it on time protects your standing in the program. Browse listings from landlords who understand the Section 8 process and welcome voucher holders.

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External Resources

• NYCHA Section 8 Property Owner Guide - Official NYCHA guide covering payments, inspections, and requirements
• NYCHA Owner Extranet Portal - Portal for managing payments, certifications, and listings
• NYCHA Payment Standards - Current payment standards by bedroom size
• NYCHA Housing Assistance Payments - Direct deposit enrollment and payment information
• HUD Landlord Resources - Federal resources for Housing Choice Voucher landlords

Internal Links Summary

• Rent Analyzer - Check payment standards for your area
• Pre-Inspection Checklist - Prepare for HQS inspection
• Rent Increase Helper - Calculate potential rent increase revenue
• List Your Property - Connect with voucher-holding tenants
• Browse Listings - For tenants searching for voucher-friendly housing