💵 Source of Income Discrimination
Which States Prohibit It, What It Covers, Housing Vouchers, How to Comply & Penalties for Violations
⚖️ Updated • Fair Housing Guide
📑 Table of Contents
🔍 What Is Source of Income Discrimination?
Source of income (SOI) discrimination occurs when a landlord refuses to rent to, or treats differently, a person because of where their income comes from — rather than how much they have. The most common example is refusing to accept tenants who pay with Section 8 housing vouchers. In states and cities where source of income is a protected class, this refusal is illegal in . 🏠
Watch Overview
🗺️ States That Prohibit Source of Income Discrimination
🏛️ States With Statewide SOI Protection
- 🌴 California
- 🗽 New York
- 🌊 Washington
- 🌲 Oregon
- 🏔️ Colorado
- 🌆 Illinois (Chicago and others)
- 🌿 Connecticut
- 🦞 Massachusetts
- 🌊 New Jersey
- 🌟 Minnesota
- 🏔️ Vermont
- 🌿 Maine
- ⛵ Hawaii
- 🌟 Nevada (as of 2023)
- 🌾 Iowa (limited)
🏙️ Cities With Local SOI Protections
- Chicago, IL
- Kansas City, MO
- Pittsburgh, PA
- Austin, TX
- Dallas, TX (limited)
- Indianapolis, IN
- Miami-Dade County, FL
- Louisville, KY
- Many additional cities — check your local ordinance
⚠️ This List Changes Frequently
SOI protections are one of the fastest-growing areas of fair housing law. New states and cities are adding these protections regularly. Search “[your state/city] source of income housing discrimination” to confirm the current status in your jurisdiction before refusing any applicant based on how they pay.
📋 What Income Sources Are Protected
The specific income sources protected vary by state. Common protected sources include:
- 🏠 Section 8 / Housing Choice Vouchers — the most commonly protected source
- 💰 Public assistance — welfare, TANF, and similar benefits
- 👵 Social Security and SSI
- 💼 Disability income — SSDI, disability payments
- 🪖 Veterans benefits — VA housing assistance
- 👨👩👧 Child support and alimony
- 📊 Any lawful source of income (in states with broad protections)
🚫 What Landlords Cannot Do in SOI-Protected Jurisdictions
- ❌ Advertise “no Section 8,” “no housing vouchers,” or “no government assistance”
- ❌ Refuse to accept a rental application because of income source
- ❌ Refuse to rent based on the applicant’s income source
- ❌ Apply different screening standards based on income source
- ❌ Quote different rent or terms based on income source
- ❌ Refuse to participate in the housing voucher inspection process
🔍 How to Screen Fairly With SOI Protection
SOI protection does not mean you cannot screen — it means you must apply the same income standards regardless of source. In practice:
- ✅ You CAN still require 2.5–3x monthly rent in income — but count all verified income regardless of source
- ✅ You CAN verify that the voucher amount plus any tenant contribution meets the rent
- ✅ You CAN still run credit, background, and eviction checks on all applicants including voucher holders
- ✅ You CAN decline based on credit or rental history — but not because of the payment source
- ❌ You CANNOT set a higher income ratio specifically for voucher holders
- ❌ You CANNOT require voucher holders to have additional income beyond the voucher amount when the voucher covers the full rent
🏠 Accepting Housing Vouchers — What’s Involved
Accepting Housing Choice Vouchers requires working with your local Public Housing Authority (PHA). The process involves:
- Request for Tenancy Approval (RFTA) — Tenant submits RFTA to PHA identifying your unit.
- HQS Inspection — PHA inspects the unit to confirm it meets Housing Quality Standards. The unit must be in habitable condition.
- HAP Contract — You execute a Housing Assistance Payment contract with the PHA defining the rent amount and terms.
- Lease Execution — You sign a lease with the tenant. The PHA pays the subsidy directly to you; tenant pays their portion directly to you.
🚨 Penalties for SOI Violations
- 💰 Actual damages — tenant’s out-of-pocket costs and emotional distress
- 📊 Civil money penalties — HUD and state agency fines
- ⚖️ Attorney fees in successful private lawsuits
- 📋 Injunctive relief — court orders requiring you to rent to the applicant
🔍 Screen Consistently — Regardless of Income Source
FCRA-compliant screening with the same criteria for every applicant is your fair housing protection. Apply identical credit, background, eviction, and income standards to all.
❓ Frequently Asked Questions
You can decline if your unit cannot be brought into compliance with Housing Quality Standards — but you cannot simply refuse to make required repairs to avoid accepting the voucher. The distinction is: if the unit needs repairs that would be required for any habitability standard, you must make them. Using HQS compliance as a pretext to avoid voucher holders when the unit would pass with standard repairs is not a valid defense.
No — the federal Fair Housing Act does not include source of income as a protected class. SOI protections are entirely state and local law. This means in states without SOI protection, refusing to accept vouchers is currently legal under federal law. However, the trend is clearly moving toward more states and cities adding this protection.
⚠️ Legal Disclaimer: SOI protection laws change frequently. This guide provides general information as of and is not legal advice.
Last Updated: | © TenantScreeningBackgroundCheck.com
