How Rhett Wiseman Built 3,000+ Section 8 Units While Avoiding Million-Dollar Mistakes

Why This Conversation Matters for Affordable Housing Investors

If you’ve ever wondered how to successfully scale in affordable housing without losing your shirt, this episode of the Affordable Housing & Real Estate Investing Podcast with Rhett Wiseman is essential listening. Rhett is a former professional baseball player turned investor and developer who has built, managed, and renovated more than 3,000 Section 8 units across the United States.

What makes Rhett stand out isn’t just the size of his portfolio. It’s his relentless focus on execution, construction oversight, and human impact. In this conversation, he and host Kent Fai He break down how to pick the right markets, vet contractors, manage Section 8 tenants, and avoid the costly mistakes that sink so many first-time investors.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

How Did Rhett Wiseman Get Started in Affordable Housing?

Like many investors, Rhett started small. His father ran a construction company, which gave him early exposure to job sites and contractors. Later, while playing baseball at Vanderbilt and then professionally, Rhett needed passive income streams.

He began buying distressed properties across the Southeast—Kentucky, Alabama, Georgia, Mississippi—where low purchase prices and landlord-friendly laws created opportunity. Over 13 years, he turned that early hustle into a system capable of producing hundreds of affordable units each year.

What Are the Biggest Myths About Section 8 Tenants?

Section 8 housing carries a reputation that often scares new investors away. Rhett tackles these myths head-on:

1. “Section 8 tenants destroy houses.”
   In reality, tenants who damage units risk losing their vouchers permanently, a consequence most avoid at all costs.
   
   

2. “Section 8 rentals attract drugs and crime.”
   Annual or semi-annual inspections by housing authorities hold both landlords and tenants accountable, ensuring units remain safe and up to code.
   
   

3. “There’s no appreciation in Section 8 markets.”
   Rhett proves otherwise, showing that well-managed affordable housing in underserved areas can deliver both stable cash flow and long-term value.
   
   

These myths often limit competition, which creates an advantage for disciplined investors who know how to operate in the space.

How Do You Pick the Right Markets for Affordable Housing?

According to Rhett, market selection isn’t about chasing the cheapest houses. It’s about where you have the right team.

• Reliable contractors who deliver accurate scopes of work.
  
  

• Property managers who understand Section 8’s unique requirements.
  
  

• Lenders and insurers willing to operate in working-class neighborhoods.
  
  

You can find $30,000 homes in places like Flint, Detroit, or East St. Louis, but without a trustworthy team on the ground, they become money pits. Rhett emphasizes execution risk: buy where you already have—or can build—a dependable support network.

Why Do Most Investors Lose Money on Contractors?

Rhett is blunt: “This is where you’re going to lose all your money.”

The biggest danger isn’t overpaying, it’s being underquoted. Many unlicensed or unethical contractors will quote $25K for a rehab that actually costs $50–60K. Once you’ve closed, you’re trapped, and the numbers no longer work.

To solve this, Rhett launched his own construction company. By buying materials in bulk, controlling every nail, and providing transparent scopes, he protects clients from the very risks that almost ended his career early on.

How Do You Build a Property Management System That Works for Section 8?

Property management is one of the hardest parts of affordable housing. Many companies refuse to handle Section 8 because of the additional work with caseworkers and inspections.

Rhett’s solution: work only with managers who:

• Specialize in Section 8 and understand the program’s rules.
  
  

• Communicate quickly with tenants, owners, and housing authorities.
  
  

• Show compassion for families in crisis, sometimes housing them temporarily until paperwork clears.
  
  

He shares stories of single mothers and families literally living under bridges while waiting for units. For Rhett, this isn’t just business—it’s about giving families a legitimate shot to change their lives.

Key Insights from Rhett Wiseman

• Always budget for true rehab costs, not the lowest bid.
  
  

• Success in affordable housing is about teams, not markets.
  
  

• Section 8 programs provide accountability for both tenants and landlords.
  
  

• Scale only works if you standardize construction and management.
  
  

• The human impact—helping families move from shelters to homes—is as valuable as the financial return.
  
  

Memorable Quotes from Rhett

“You didn’t even have a nail banged, you didn’t even send a penny, and you’re already underwater because you trusted the wrong contractor.”

“I use what I see in distressed neighborhoods as motivation to make sure families get a legitimate shot to better their lives.”

“If you don’t have a company or person you trust doing not only the work but the estimates, I can guarantee you you’re going to lose money.”

Common Questions About Section 8 Investing

Is Section 8 investing profitable in today’s market?
Yes, but only if numbers work. Government payments can be stable and sometimes higher than market rent in distressed areas.

How do I make sure Section 8 tenants don’t damage my property?
Tenants risk losing their voucher permanently if they damage a unit. Strong inspections and caseworker accountability reduce that risk.

What’s the hardest part of Section 8 investing?
Finding reliable contractors and property managers. The execution risk is far greater than the market risk.

Why is affordable housing so hard to solve?
Property costs have risen faster than subsidies. Unless government funding and incentives catch up, private landlords often choose higher-paying tenants.

Final Thoughts: Building Wealth and Impact Together

Rhett Wiseman’s journey is proof that affordable housing can be both profitable and life-changing when done with integrity. By focusing on teams, accountability, and quality, he’s built thousands of units that give families stability and opportunity.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.