💸 Source of Income Discrimination

Which States Prohibit It, Section 8 Acceptance Requirements & What Compliance Actually Means

✓ UPDATED STATE-BY-STATE GUIDE GROWING LEGAL PROTECTION

Source of income (SOI) discrimination — refusing to rent to someone because their income comes from housing vouchers, Social Security, disability benefits, or other public assistance — is illegal in a growing number of states and cities. This area has expanded dramatically and continues to grow. Here’s where it’s prohibited, what it means in practice, and how to comply.

▶ Video Overview
Source of Income Discrimination | What Landlords Must Know

States That Prohibit Source of Income Discrimination

StateSOI ProtectionScope
CaliforniaYes — statewideAll lawful income including Section 8, disability, public assistance
New YorkYes — statewideSection 8, disability, public assistance, all lawful income
WashingtonYes — statewideSection 8, government assistance programs
OregonYes — statewideHousing vouchers and public assistance
ConnecticutYes — statewideAll lawful income sources
New JerseyYes — statewideSection 8; strong enforcement
MassachusettsYes — statewideHousing vouchers and public assistance
VirginiaYes — statewide (since 2020)Section 8 and other housing vouchers
IowaYes — statewidePublic assistance income
UtahYes — statewideHousing vouchers
NevadaYes — statewideHousing vouchers
IllinoisChicago and Cook CountyLocal ordinances cover Section 8
Most other statesNo statewide protectionIndividual cities may have protections — check locally

What SOI Protection Prohibits

  • Advertising “No Section 8” or “Vouchers not accepted”
  • Refusing to accept a rental application from a voucher holder
  • Declining to proceed after learning an applicant has a voucher
  • Applying more stringent screening criteria to voucher holders than other applicants
  • Refusing to cooperate with required housing authority inspections

What SOI Protection Does NOT Require

SOI laws do not mean you must approve every voucher holder. You can still:

  • Apply your standard income verification and credit requirements to all applicants
  • Require that total income (voucher + tenant portion) meets your income ratio
  • Deny applicants who don’t meet your screening criteria for non-voucher reasons
  • Set rent at market rate (subject to payment standard limits)

Section 8 Participation — What It Actually Involves

  • Housing quality inspection — unit must pass HUD Housing Quality Standards before move-in
  • HAP contract — you sign a Housing Assistance Payment contract with the local housing authority
  • Split payment — housing authority pays their portion directly to you; tenant pays their smaller share
  • Annual inspections — units inspected yearly; failures require repair
  • Rent reasonableness — rent must be within the housing authority’s payment standard
❓ Can I still screen Section 8 tenants?
Yes — SOI protection means you cannot refuse solely because of the voucher, but you can and should apply your standard screening criteria. Run the same credit check, background check, eviction history, and income verification you run on every applicant. Section 8 tenants can be denied for the same documented reasons any other applicant would be denied.
❓ My state doesn’t have SOI protection — can I still refuse Section 8?
In states without SOI protection, you can decline Section 8 as a general policy. However, a blanket refusal of Section 8 could create disparate impact Fair Housing liability if it disproportionately excludes a protected racial group in your area. This area of law is also changing rapidly — check your current state and local rules before relying on the absence of protection.
📚 Related:Fair Housing Act GuideProtected Classes GuideTenant Screening Laws by StateUltimate Screening GuideOrder Screening Report

⚠️ Legal Disclaimer

This guide is for educational purposes only and does not constitute legal advice. Laws vary significantly by state and locality. Always verify requirements for your jurisdiction and consult a licensed landlord-tenant attorney before taking legal action. See our editorial standards for accuracy details.