HAP has recently raised its housing voucher payment standards. For a 2BR unit the increase was $37 per month, or $444 per year. As all of that increase adds to an owners income (and there is no additional cost for the tenant) I started thinking about how much of boost in property value would result from this change in payment standards.
The answer may surprise you--it did me. Using a cap rate of 6.5% and an estimated 7,500 HAP vouchers (using HAP's most recent dashboard report HERE), and assuming all 2br units, I calculate that rental property values were increased in Multnomah County by more than $50 Million because of this one simple change.
Think I'm wrong or would like to estimate using a different cap rate,or a different number of vouchers,or a different change in payment standards? You can do so by downloading and inputting your own values in this MS Excel HUD Voucher Property Value Impact Estimator HERE. (Feedback always welcome, including improvements and identification of any errors).
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