Rental price tools vs Section 8

[Cody Skiles]

Does section 8 housing inflate the rental price tools on BP or rentometer?

I purchased my first long term long distance rental last year in a solid B neighborhood in Memphis with a tenant in place. The lease is up the end of April and I will be able to finish my BRRR on this place with minor improvements and refinancing out. Current rent is $1125 for this 3 bed 2 bath place. I will be able to make it a 4/2 with a bedroom above the garage.
My property manager advised me to keep rent below $1300. I pushed back sighting the BP rent estimator and rentometer having high confidence of a median range of $1300-$1700. His response was that section 8 inflates the numbers for these tools and messes up the market. Is this true?!? I’ve never heard of this. Thanks for your time. 

[Michael Smythe]

@Cody Skiles no idea what your PMC is referring to.

S8 does NOT inflate COMPARABLE rents!

So many are misinformed on what S8 does and how it does it.

It's our tax dollars, so S8 is NOT looking to place low-income tenants (S8) in Class A properties. That would make zero sense.

Most Class B properties are also not the target for S8 tenants.

That leaves Class C & D properties.

There are a ton of inexperienced (and only a few experienced) investors buying Class D properties and trying to entice S8 tenants to rent them. This is pretty much the only SFR asset class where you can get higher S8 rent than cash rent.

[Jordan Ray]

Quote from @Cody Skiles:

Does section 8 housing inflate the rental price tools on BP or rentometer?

I purchased my first long term long distance rental last year in a solid B neighborhood in Memphis with a tenant in place. The lease is up the end of April and I will be able to finish my BRRR on this place with minor improvements and refinancing out. Current rent is $1125 for this 3 bed 2 bath place. I will be able to make it a 4/2 with a bedroom above the garage.
My property manager advised me to keep rent below $1300. I pushed back sighting the BP rent estimator and rentometer having high confidence of a median range of $1300-$1700. His response was that section 8 inflates the numbers for these tools and messes up the market. Is this true?!? I’ve never heard of this. Thanks for your time. 

Wether it inflates or it doesn't, its still a comp! I have a property in 38109 that rents like section 8 but there is just a regular renter in there paying wayyy over market rent! I would definitely always do your numbers conservatively though when analyzing the deal because this is not guaranteed and can be very risky if you rely on the higher number! Hope that helps! Let me know if I can help with anything!