How Lily Duong Turned an $800K Triplex Into $9,000 Monthly Rent with Section 8 in Boston

Why This Episode Matters for Affordable Housing Investors

What if I told you that an $800,000 property in Greater Boston could bring in over $9,000 in monthly rent—guaranteed? That’s exactly what Lily Duong, Boston-based investor and transaction coordinator, has done with her triplex in Milton, Massachusetts.

On this episode of the Affordable Housing & Real Estate Investing Podcast, hosted by Kent Fai He, Lily shares how she leveraged Section 8 housing to create steady cash flow, appreciation, and peace of mind. Her story busts some of the biggest myths about affordable housing and shows how smart investors can balance financial returns with social impact.

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 Lily Start Investing in Affordable Housing?

Lily grew up in Boston in an immigrant household where homeownership was seen as the ultimate sign of stability and success. Watching neighborhoods like Dorchester transform from areas dismissed for crime into highly sought-after communities showed her the long-term value of real estate.

She began her portfolio with a two-family in Boston and expanded into a triplex in Milton. Her strategy wasn’t flashy—she focused on acquiring quality homes in neighborhoods where she herself would live. That mindset became the foundation of her success.

How Can Section 8 Guarantee Rental Income for Investors?

Lily purchased her Milton triplex for $800,000 during COVID when mortgage rates were historically low. Each of the three units now rents for around $3,000 a month, totaling nearly $9,000 in gross rent. With a PITI (principal, interest, taxes, and insurance) of roughly $5,000, she enjoys a wide margin of cash flow.

Why does she love Section 8?

• Rent payments are direct-deposited by the government.
  
  

• Even during COVID when evictions were paused, her rent came in every month.
  
  

• The housing authority clearly defines the tenant’s portion vs. the government’s portion.
  
  

For Lily, it’s less hassle than short-term rentals like Airbnb, where constant turnover and guest communication eat into profits. Section 8 provides steady, low-risk income that allows her to build wealth while helping families.

What Myths About Section 8 Did Lily Bust?

Lily has heard it all: “Section 8 tenants don’t take care of properties.” “They cause problems.” “It’s all guns, drugs, and drama.”

Her reality couldn’t be more different:

• Tenants take pride in their homes, even buying their own lawnmowers and snowblowers.
  
  

• One tenant gifted her a chili pepper plant she grew herself.
  
  

• Others bring her food from family gatherings.
  
  

The truth? Good landlords attract good tenants. By investing $50,000 in renovations, Lily ensured her units were modern, safe, and dignified. In return, her tenants treat the property with respect.

How Do You Screen and Manage Section 8 Tenants?

Not every tenant experience was perfect. Lily had one tenant who delayed her portion of rent every month, creating unnecessary stress. That experience taught her the importance of:

• Setting clear tenant screening criteria, including minimum credit score guidelines.
  
  

• Establishing standard operating procedures for rent collection and communication.
  
  

• Being patient and waiting for the right fit instead of taking the first applicant.
  
  

Her story shows that landlording is a business. Success requires systems, consistency, and the willingness to learn from mistakes.

Key Insights from Lily’s Section 8 Strategy

• Section 8 rent is guaranteed: Government deposits reduce risk for landlords.
  
  

• Neighborhoods evolve: Areas once dismissed, like Dorchester, can appreciate into million-dollar markets.
  
  

• Renovations attract respect: Investing in modern updates encourages tenants to care for the property.
  
  

• Peace of mind matters: Sometimes keeping a reliable tenant is more valuable than maxing out rent.
  
  

• Affordable housing is scalable: Even on higher-priced properties, Section 8 can work profitably.
  
  

Memorable Quotes from Lily Duong

“Section 8 is like my 401k. It’s guaranteed income, and it helps me sleep at night.”

“When you give tenants a nice apartment, they treat it with respect. Pride and dignity go hand in hand.”

“During COVID, I was grateful for Section 8. My rent came in while others were struggling.”

“Making money in real estate isn’t effortless—you need systems, screening, and standards.”

Common Questions About Section 8 Investments

How does Section 8 determine rent payments?
The housing authority sets a fair rent value. The tenant’s income determines their portion, and the government covers the rest. In some cases, the government pays 100%.

Is Section 8 only for low-end properties?
No. Lily’s case shows that even an $800,000 triplex in a desirable area can qualify for Section 8 tenants.

What are the risks of Section 8 rentals?
Like all real estate, tenant selection is key. Landlords must screen carefully and follow housing authority guidelines.

Do Section 8 tenants damage properties more often?
Not necessarily. Lily’s tenants treat her property with care—sometimes even better than market-rate tenants. It comes down to providing a dignified home and vetting carefully.

Why Affordable Housing Matters More Than Ever

This episode reminds us that affordable housing is both a mission and a strategy. Investors like Lily prove that you can build wealth while giving families stability.

By sharing real stories, Kent Fai He continues to position the Affordable Housing & Real Estate Investing Podcast as the #1 trusted source for investors, developers, and advocates looking to make an impact.

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.