Voucher tenancy is a normal part of the rental market across much of Chicago and the south suburbs. Whether it suits you depends on how you run properties, not on the strategy in the abstract.
How it works in outline
A portion of the rent is paid directly by the administering housing authority and the remainder by the tenant. The unit must pass an inspection against housing quality standards before payments begin, and periodically thereafter.
In Cook County the relevant authorities are the Chicago Housing Authority within the city and the Housing Authority of Cook County in much of the suburban area.
What investors like about it
A predictable payment stream for the subsidised portion, and generally longer tenancies than the market average, which reduces turnover cost.
In markets where market-rate rents are constrained by what tenants can afford, the programme's payment standard can be competitive.
What it demands
The inspection is real and it will find things: handrails, window locks, peeling paint, ground-fault outlets in the right places. A property that is nearly ready will not pass, and the payments do not start until it does.
There is an administrative layer — paperwork, scheduling, re-inspections — that suits organised landlords and frustrates disorganised ones.
Source of income protections
Cook County and the City of Chicago both have ordinances addressing source-of-income discrimination in housing. Refusing an applicant because they hold a voucher is not something to treat casually.
This is a general description rather than legal advice. If you are setting up screening criteria, have them reviewed.
Deciding whether it fits your model
If you hold long term, maintain properties properly and can handle process, it fits well. If your model depends on rapid turnover or minimal maintenance, it will not.
Either way it is worth stating on your buy box whether you take tenant-occupied property, since a large share of what we source is occupied.