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Section 8

I have prospective tenants that want to sign a separate agreement outside of their Section 8 agreement to pay the remaining amount of the rent that I'm asking. In other words, Section 8 only covers X and they want a separate agreement for the remaining $450. Has anyone ever dealt with that in MA? Am I being overly suspicious or is something fishy about this?

The two persons who have had good experiences with section 8 are pretty lucky. I have had 4 section 8 tenants always trying to think the next tenant will be better, and no luck. I had one tenant who destroyed the house so bad that we incurred over $3000 to get it back into move in condition, and all section 8 said was "there is nothing we can do about it, you have to take them to civil court". None of my section 8 tenants have ever paid their portion of rent on time and I've always had to hunt them down just to ask what's going on. As far as fair market value, I don't know where they get their information from, but its always a lot lower than anywhere else I've checked! The guaranteed monthly payments sound good, but unfortunately I think the majority (because I don't believe its all) of the tenats are like this. Personally, I think it's not worth the headache, and I no longer rent to section 8.
"Its hard if not impossible to evict a section 8 Think it over carefully"  Its hard to evict any tenant LEGALLY.   Each state has its own process.  A lot of landlords evict improperly.    The only difference is landlords can't pull illegal tactics to get rid of someone.
Each city has there very own section 8 laws, you can easily find and city HUD contact information with a quick search. If you have never done section 8 before make sure that you are prepared you will want to make sure that you and your property are fully taken care of in the lease. I have see landlords crash and burn because they wanted to try it to help out  and get some of the perks like tax deductions. They found their properties destroyed. If done correctly it may be worth it but do all of you research and make sure each tenant and even occupant has a background check carried out on them.
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