After approval, you may get wait listed. An inconclusive result generally means they need more information from the property owner. HUD recalculates fair market rents for state and local areas each year, taking into consideration local rental market conditions. As there are some major benefits to renting through the section 8 program, we usually recommend that you determine whether you accept a tenant or not based on their overall application and not on where their income comes from. In others, its optional. The housing authorities will contact you once you reach the top of the list. That means landlords can't advertise "No Section 8" or treat Section 8 recipients differently. According to the Zillow Group Report, only 52% of renters say they would be able to cover an unexpected expense of $1,000 if they had to. The Legislature, reasoned the court, was making it crystal clear that a subsidy to the landlord was different than, say, money paid to a tenants conservator. Do you write "No Section 8" in your apartment ads, or you do you tell inquiring prospects that you don't "take Section 8"? How do you get a house approved for Section 8? As a result, many low-income families turn to housing vouchers to help cover the cost of the rent. Copyright 2023 SuperMoney, LLC. The state has recently passed legislation that prohibits landlords from denying or refusing to accept applications from those who utilize public assistance. The family pays the difference between the rent and the subsidy. An eviction must be in accordance with local law and any additional requirements of the PHA; generally: Have more questions about being a landlord? "Chapter 5 Rents," Pages 1-2. HUD ensures that voucher-holding tenants are treated properly by their landlords and only using the vouchers at approved and safe housing locations. That is a record," he said. Sign up for the The amount they will pay will depend on their income. The trademarks MLS, Multiple Listing Service and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. Enforce and comply with the landlord's responsibilities outlined in the lease. "Section 4:Unlawful Practices." in urban areas said they cant afford a home in their preferred neighborhood, compared to 45% of suburban renters and 32% of rural renters. Contact a local USDA-RD office for more information. Inspectors will check for things like: Some inspectors will also look at the homes heating or cooling system. The Housing Choice Voucher program, commonly known as Section 8 because it is part of the larger Section 8 program, is a federal housing assistance program that subsidizes a tenants rent payment in order to help low-income renters access safe, decent and sanitary housing. The family designates its Section 8 benefit to the landlord. These rights vary by state but always include the tenant's right to a habitable premises, due process before an eviction and more. But when it comes to the U.S. housing market, we can look to the past to get a Average landlord costs are up and revenue is down across New York Citys 1 million rent-stabilized After three years of research, the city is finally deciding what to do about Airbnbs, Vrbos, and other Evictions dont just take a toll on displaced families, they put the safety of entire communities at Rosenberg & Estis, P.C. When renters find houses or other suitable property where the private landlord accepts the voucher and works out the terms of a lease agreement, the housing and urban development agency inspects the home to make sure the landlord is asking for a reasonable payment. In Tennessee, legislators barred localities from enacting certain housing reforms, a law widely seen as targeting the more liberal Nashville laws. Currently 15 states, now including Washington, ban housing discrimination based on a person's source of income; four others use tax and other incentives to persuade landlords to accept public. A private landlord receives a payment from the PHA on behalf of the renter participating in the Section 8 program. Instead, this program covers a wide assortment of houses, townhomes, and apartments in a variety of neighborhoods. Therefore, the City of Boulder and the City and County of Denver recently passed ordinances requiring local Landlords to accept all legal sources of income, including Section 8 vouchers. . Regardless of who you are screening as a. , and you must treat all housing applicants equally. The HUD has a website that prospective tenants can use to, It is important to follow proper protocol when. Your rental property must be inspected and approved by the PHA annually. A Section 8 tenant cannot live in your property until your property is approved by the Section 8 office. Receiving consistent, on-time payments is a top concern for most landlords, and for good reason. Nevertheless, landlords and property managers should keep an eye out for local Section 8 mandates, as more jurisdictions adopt the mandate around the country. The simple fact is that all tenants, regardless of where their income is sourced from, need to be thoroughly screened to help ensure that, If youre interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one. Fair housing prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability. No. Thats because each PHA sets its own eligibility rules with HUDs national guidelines. Theyll review a tenants income level and may uncover issues like criminal history. Here are the top four benefits of being a Section 8 landlord. Becoming a Section 8 landlord can open up a new group of renters to you. For example, Chicago's municipal code includes a housing discrimination ban based on source of income that includes applicants who have Section 8 vouchers. Are Landlords Required To Accept Section 8 Tenants. The measure does not prohibit choice among tenant applicants based on other factors. If you receive a Section 8 benefit and then decide you want to move to a different city, you may be able to take your housing benefit with you. What Are The Different Types of Life Insurance? Law Requires Landlords to Accept Section 8 Print Friendly Kirkland, Washington lawmakers this week passed an ordinance prohibiting landlords there from turning away applicants who rely on Section 8 vouchers. Something went wrong. Apartments and other rentals that accept Section 8 must pass an inspection by HUD and the local PHA. And, they can only raise the rent once a year. Alert. When Can a Tenant Legally Break a Rental Lease? In the right situation, however, tenants that have hit hard times will have a Section 8 housing voucher they can use to rent approved properties. In Montana, legislators are attempting to do the same to invalidate the city of Billingss laws. You may evict a Section 8 voucher holder for good cause, which generally includes a serious or repeated violation of the lease agreement. However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. The program assists not only low-income families but low-income elderly and disabled tenants as well. Under the Section 8 rules, owners may screen tenants for factors such as payment of rent; care for the rental unit and premises; respect for other tenants rights to the peaceful enjoyment of their premises; and drug-related criminal activity or other criminal activity that is a threat to the health, safety or property of others. Does Refinancing Your Car Loan Hurt Your Credit Score? Public housing agencies determine eligibility for Section 8 vouchers based on a household's income and the number of family members living in the home. And in Indiana, some legislators have waged a protracted battle against bus rapid transit in Indianapolis. The form requests basic information including: The Request for Approval Form is the first step in getting your property approved for a Section 8 tenant. In 2018, the Urban Institute did a pilot study with the Department of Housing and Urban Development looking into how widespread source-of-income discrimination is, and found that landlords often refuse to rent to Housing Choice Voucher (HCV) holders. Denial rates ranged wildly in the cities they studied: Fort Worth, Texas (78 percent); Los Angeles (76 percent); Newark, New Jersey (31 percent); Philadelphia (67 percent); and Washington, DC (15 percent). Ecuadors political instability, explained, In Sudan, the US government finally begins evacuating its citizens. Effective January 1, 2020, California implemented two bills which essentially require landlords to accept Section 8 or housing vouchers as an income source from applicants. Section 8 is the United States Department of . That means landlords cant advertise No Section 8 or treat Section 8 recipients differently. Then, it will be time to landlords who will accept housing vouchers. Thats because every PHA sets its own rules. Section 8 recipients arent forced to live in housing projects or homes that have been designated for low-income residents. Back If you wantto raise a Section 8 tenants rent, you must submit a request to your local Section 8 office. Tenants in positions like yours have used creative arguments to support their theory that the landlord must participate in the program. The General Court of the Commonwealth of Massachusetts. Copyright 2023 MH Sub I, LLC dba Nolo Self-help services may not be permitted in all states. A proposed pro landlord bill in North Carolina says that Landlords could not be required to accept section 8 tenants. A Section 8 tenant is still subject to the same qualifying standards as non-Section 8 tenants. In Connecticut, Maryland and Massachusetts, for example, landlords may not refuse to rent to current or new tenants who become or are eligible for Section 8 help. Who is eligible for Section 8 housing assistance? Hendren estimates that the lifetime benefit to a newborn child of moving from a low- to high-opportunity neighborhood is about $210,000 in additional income, or an 8.1 percent increase in lifetime earnings. During the video, he explains why he will not show the viewing audience his face amidst the rubbish: because I dont want you to see a grown man cry, he says as he walks from room to room panning the damages in each. Would-be Section 8 tenants can attempt to extend that ban to subsidies to the landlord from the government under Section 8. Some states (such as Oregon) and cities (such as Seattle) impose laws that require landlords to accept Section 8 tenants. But concerns about Section 8 go beyond property damage: the initial approval process can be grueling and fraught with inspections and red tape, and there are required annual property inspections. Some states require private landlords to accept vouchers. You Have Options. Understanding how Section 8 housing vouchers could play a part in your profits or losses is an important part of becoming a more experienced landlord; heres what we think that you need to know. By submitting your email, you agree to our, Iowa is making it harder to be a low-income renter. Can Section 8 vouchers be used anywhere? You can also contact your local PHA (see below) for more information on what the median income is for a household the size of yours in your area. As with any other tenant, you must follow the terms of the lease agreement, as well as local landlord-tenant laws, when renting to a tenant with a housing choice voucher. However, private landlords must charge Section 8 renters the same as other renters for comparable apartments. And in New Jersey, when an existing tenant becomes eligible for Section 8 help, the landlord may not refuse to accept Section 8 money. You should not rely on it for any purpose without consulting a licensed attorney in your jurisdiction. In the past, landlords had the luxury of turning away tenants with Section 8 housing vouchers without much explanation. Your email address will not be published. Will having the worlds biggest population make this the Indian Century? Median incomes vary, sometimes dramatically, from one area to another. But source-of-income discrimination laws are only as good as their enforcement. On its face, source-of-income discrimination is not explicitly banned by the Fair Housing Act, which names race, color, national origin, sex, religion, disability, and familial status as protected groups. Her work has appeared in The New York Times, The Guardian, Good Housekeeping, HuffPost, Parade, Money, Business Insider, Realtor.com and lots more. But, it's up to low-income families to find rentals and private landlords that accept vouchers. Any opinions, analyses, reviews or recommendations expressed here are those of the authors alone, and have not been reviewed, approved or otherwise endorsed by any financial institution. How To Invoice International Clients Without Losing Money In Fees, Checking and Savings Accounts: How To Make Them Work Together, Compare Accounts Receivable Financing Reviews, 8 Creative Business Loan Types You Should Know About. While the Section 8 program isnt a great fit for every landlord, there are some key advantages that might make you consider joining and renting to Section 8 tenants. Federal Register. Accessed Nov. 17, 2020. This inspection will determine if your unit meets the minimum housing standardsset by HUD and by the local public housing authority. Still, many renters may not know where to look to find private landlords that accept housing vouchers. In most areas, landlords are not required to accept Section 8 tenants. Section 8 Housing in New Hampshire It's no secret that affordable housing is in short supply in the Granite State. Another great way to find Section 8 landlords is . It allows recipients to choose their own home as long as the landlord participates in the program as well. Through New York's Housing Choice Voucher (HCV) program, the federal . How long it takes to be approved varies from one PHA to another. Property news, laws and deals for landlords. Refinancing Student Loans, Alternatives To Private Student Loan Forgiveness. Regardless of who you are screening as a Section 8 landlord, you must never engage in any discriminatory conduct, and you must treat all housing applicants equally. According to the Center on Budget and Policy Priorities, 5.2 million people nationwide receive vouchers from the program that cover some portion of their rent. But that is no longer the case in many areas, and some believe that federal inclusion of Section 8 voucher holders as a protected class will arrive in the not-too-distant future. Denver's SOI ordinance took effect January 1, 2019. Section 8 offers a rent subsidy, but the benefit isnt paid directly to recipients in cash. While youll still want to exercise your right to screen Section 8 tenants, housing authorities will also screen tenants when qualifying them for vouchers. Texas: Texas has laws that forbid cities and counties from implementing any discrimination bans such as those passed in Chicago. It hurts. More States & Municipalities Requiring Landlords to Accept Section 8 Tenants, first-time landlord offered up video footage. When asked about his past interactions with Section 8, ezLandlordForms Brian Davis (no relation) expressed frustration with his experience, in which inspectors consistently required about $2,000 worth of repairs for each property, each year, as a simple and effective way of proving that they had visited each property on their rounds. These checks help you uncover issues, such as a criminal history or a history of frequent moving. Rent prices are up more than 20 percent compared to this time last year. Section 8 pays the majority of the tenants rent, but it does not pay all of it. Section 8 is a huge help to many renters struggling to find a place that they can afford. , effectively subsidizing the rental cost for the tenant. There is a long wait to receive housing assistance, with many waiting. Oops. How the PHA makes rent payments to the landlord (e.g., by check or direct deposit). How To Get a Personal Loan With Fair Credit, How to Use a Personal Loan to Build Credit. Theyll review a tenants income level and may uncover issues like criminal history. After selecting a Section 8 renter, there are several forms you must submit to the housing authority in order to complete the arrangement, including: Aside from these documents, local PHAs may have additional requirements, including home inspection forms or documentation relating to utility payments. If any items fail the inspection, they must be remedied, or the housing authority may declare that the unit is unfit for the Section 8 tenant.. After getting your initial questions answered, you can follow these general steps: To begin the Section 8 landlord qualification process, contact your local PHA for the paperwork. Generally speaking, the familys income may not exceed 50% of the median income (adjusted for family size) for the area where they reside. For more information on accepting section 8, check out this video: Ultimately, the thing that matters most about Section 8 housing is not whether or not you are required to accept these vouchers. Even if the unit has passed the firstSection 8 inspection, it must pass this yearly inspection for the tenant to continue living in the property. What Are the Differences Between Federal and Private Student Loans? I felt like I had to settle because I didnt have any options. Pros and Cons of Refinancing Your Mortgage, Questions to Ask Before Refinancing Your Mortgage, SuperMoney's Student Loan Refinance Marketplace, How To Get The Best Student Loan Refinance Rates. For more information, please consult with an attorney who is familiar with the laws in your area. Zillow, Inc. does not guarantee that the information in this guide is adequate or that it is compliant with current, applicable laws. There may be validity to this claim, but unit inspections ensure the safety of rental units and policymakers are unlikely to be persuaded that safety inspections should . What Does Equal Housing Opportunity Mean? You must respond to any maintenance requests, address any health or safety concerns, and handle any complaints they may have about other tenants. Thats why the federal government offers the Section 8 Housing Choice voucher program, which subsidies rent for very low-income families, as well as elderly and disabled people. Although some states do require that landlords accept Section 8 tenants, a landlord does not have to accept every Section 8 tenant. What the hell is going on in Beau Is Afraid? Note:This article is provided for informational purposes only. Many tenants receive rental assistance through a federal program referred to as "Section 8". based on how tenants pay their rent, including whether they use a Section 8 voucher. With the, , you can be virtually assured you will receive the PHAs portion of the rent on time (subject to congressional appropriations). Martha Galvez, one of the authors of the Urban Institute study, explained why landlords are discriminating: Theres a lot of reasons why landlords dont want to accept vouchers. While we cannot list every single area as there are too many, we can cover some of the most well-known exceptions: All in all, there are 15 states that have some type of rules about Section 8 housing or income-based housing discrimination at this time. In Chicago, it is illegal to discriminate based on a tenants income, so denying a Section 8 tenant just for their voucher is ill-advised. Select a Section 8 Tenant There are sound reasons to say yes as well as some downsides to consider. Colorado state law does not currently prohibit local cities from passing legislation for SOI mandates. Everyone deserves to live in a decent, safe, and sanitary home. Zillow Group is committed to ensuring digital accessibility for individuals with disabilities. In the latter circumstance, a landlord could not legally refuse to rent to a conservatee whose support was channeled through a conservator. You must give the tenant an eviction notice, such as a notice to vacate, under local law. Some have to do with stereotypes about families that have vouchers and some parts of it have to do with landlords experiences with housing authorities and dealing with the government as a partner in your lease.. The biggest risk of the program, in our opinion, is that the price of your rental will be at least partially dictated by the HUD program. Short-Term vs. It's quick, free and wont hurt your credit score. Under SB 329 and SB 222, all landlords in California will be required to accept Section 8 and VASH vouchers and other forms of rental assistance and to consider them as part of an applicant's income.Both went into effect on January 1, 2020. Meanwhile, your property may be vacant and your expected tenant might decide to live someplace else. Directly to your inbox. Commonly referred to as source-of-income discrimination, landlords across the nation often refuse to accept tenants who attempt to pay rent with help from the federal governments Section 8 housing voucher program. The exact amount the government pays for Section 8 varies based on where the property is, but the amount is usually 90 to 110 percent of the fair market rate. You should not rely on it for any purpose without consulting a licensed attorney in your jurisdiction. Still, there are plenty of landlords who court Section 8 tenants because of the guaranteed on-time payments, and in some cases, higher rents paid by the government. To accept Section 8, private landlords must have their apartments and other properties approved by HUD. Not all private landlords accept Section 8. The appeal is easy to understand, and makes for easily-digested soundbytes, especially for novice landlords. One such argument is based on the states ban (if there is one) on discrimination on the basis of source of income.. And, since Section 8 tenants can lose their housing voucher if they dont adhere to the terms of their lease, they may be more inclined to pay their portion on time as well. Renters still have to pay their security deposits. Perhaps, in the very near future, it wont even be relevant if the federal government follows the lead of municipalities like Cook County, Illinois, where Section 8 voucher holders were recently made a protected class in anti-discrimination laws. How much landlords can collect from the tenant as a security deposit. Do Private Student Loans Have a Statute of Limitations? The family applies for and receives a Section 8 housing voucher from a local public housing agency (PHA). No matter where your rental property is, accepting Section 8 tenants can open the door to a larger group of renters in your area, which can ultimately allow you to fill your vacancy more quickly. All Rights Reserved. And, this is tough, depending on where you live. Rental Agreements: What's the Difference? Here is a list of the benefits and the drawbacks when considering Section 8. The HUD has a website that prospective tenants can use to find qualifying low-income housing. The inspection and, if necessary, the repair process can take a while. Accessed Nov. 17, 2020. One hears lots these days about activist judges, usually from quarters that disparage tenant rights, but in the California case, the judges were simply doing their job applying the clear law that the Legislature wrote. On Friday, Reynolds and the Republican-controlled Iowa legislature enacted a bill that will have the state join Texas and Indiana in barring localities from enacting laws that stop landlords from discriminating against Section 8 renters. If youre interested to know more about becoming a HUD landlord, you can check out our complete guide to becoming one here. "Our numbers show that around . The first and most obvious way to contact Section 8 landlords is through local housing agencies. In Connecticut, Maryland and Massachusetts, for example, landlords may not refuse to rent to current or new tenants who become or are eligible for Section 8 help. U.S. Department of Housing and Urban Development. Landlords may have difficulty getting rents paid on time by the local public housing authority and often the unit inspections can be an inefficient and arduous process. If youre thinking about becoming a Section 8 landlord, here are the steps to get started and a few pros and cons to consider. More than 5 million households use federal rental assistance through the U.S. Department of Housing and Urban Development's Section 8 program, and about 70 percent of those individuals are older people, children and people with disabilities. Named for Section 8 of the U.S. Housing Act of 1937, the law allocates taxpayer funding to help states address the shortage of decent and safe affordable housing for low-income families. How do you get a house approved for Section 8? If a landlord requires an income threshold, any rent subsidy must be . Many landlords have historically declined to accept prospective tenants holding vouchers issued pursuant to the Section 8 Housing Choice Voucher Program ("Section 8"). SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. . In some states and localities, landlords are required to accept Section 8. Why You Need to Make Sure Your Tenants Security Deposit Is Returned on Time, Do Not Share or Sell My Personal Information, Start with your local PHA, which can point you in the direction of property owners that accept vouchers. Read our, Find Out If You're Required to Accept Section 8 Tenants, Pass Housing Quality Standards Inspection/Pass Yearly Inspections, Collect Security Deposit and Monthly Rent, A Tenant's Responsibilities Under the Section 8 Voucher Program. Comply with terms of the Housing Assistance Payments or HAP Contract. Austin, TX passed a similar ordnance, which was challenged by the Austin Apartment Association. Her work has been featured online and in print by The Washington Post, Los Angeles Times, Chicago Sun-Times, Urban Land, Business Start-Ups and Fox Business Network Online, among many other newspapers, magazines, and websites. Hidden tears and suppressed emotions are probably not expressions often associated with landlords unless describing efforts to remain calm after seeing their once-pristine, one-year-old property destroyed. In some states, the information on this website may be considered a lawyer referral service. Also known as HUD housing, this program grants vouchers to tenants that act as a guarantee that the program will pay 70% of the rent while the tenant will be responsible for the other 30%. Importantly, the researchers also discovered that landlords were the most likely to discriminate in wealthier areas, which has the effect of concentrating poverty and forcing voucher recipients to live in less desirable neighborhoods with worse outcomes for children. However, there are some regions and states where there are some limitations about when landlords can and cannot deny an application by a Section 8 voucher holder. It just seems like theres discrimination against Section 8. The state has passed a law allowing landlords to engage in the last (mostly) legal form of housing discrimination.