Source-of-Income Laws 2026: Can You Say No to Section 8?

TL;DR: No federal law bans "No Section 8" policies, but as of 2026 at least 22 states, Washington D.C., and over 100 cities and counties have source-of-income (SOI) laws that make it illegal to reject a tenant solely because they pay with a housing voucher. Where these laws apply, you can still screen for credit, income-to-rent ratio, and criminal history — you just can't post "No Section 8" or refuse to accept the voucher itself. Violations can trigger fair housing complaints with fines running from a few thousand dollars to well over $50,000 for repeat offenses in some jurisdictions.

_Last reviewed: August 2026 · 8 min read_

You've probably seen the sign or the listing line: "No Section 8." A lot of landlords still write it without knowing whether it's even legal where they own property. In 2026, the honest answer is: it depends entirely on your state and sometimes your zip code — and getting it wrong can cost thousands.

Okoniq Property Hub helps landlords track which local ordinances apply to each unit and log screening decisions in case a fair housing question ever comes up.

What is a source-of-income law, and does federal law protect voucher holders?

Federal fair housing law does not list "source of income" as a protected class, so there's no nationwide ban on refusing vouchers. The Fair Housing Act of 1968 protects race, color, national origin, religion, sex, familial status, and disability — that's it. Section 8, formally the Housing Choice Voucher program, is administered by HUD and funds about 2.3 million households nationwide, but accepting the voucher has always been a state-or-local decision, not a federal mandate.

That gap is why states started writing their own rules. A source-of-income (SOI) law adds voucher status, disability payments, alimony, or other lawful income to the list of things a landlord can't use to reject an applicant. Where one exists, "No Section 8" in a listing is treated the same as "No families" or "No Black tenants" — a straightforward violation.

Which states and cities ban "No Section 8" policies in 2026?

As of early 2026, at least 22 states plus D.C. have some form of SOI protection: California, New York, New Jersey, Connecticut, Massachusetts, Oregon, Washington, Colorado, Illinois, Minnesota, Vermont, Delaware, Maryland, Nevada, Utah, and others, with several — including Virginia and Michigan — enforcing it only in specific counties or cities rather than statewide. Over 100 additional cities and counties have local ordinances even in states without a statewide law, including Dallas, Austin, and parts of Ohio.

| Where you own | Can you refuse a voucher solely because it's Section 8? | |---|---| | State with statewide SOI law (CA, NY, NJ, CT, etc.) | No — treated as illegal discrimination | | State with no law, but a local city/county ordinance | No, if the property sits inside that jurisdiction | | State with no SOI law anywhere | Yes, currently legal, but check for pending 2026 legislation |

Texas, Florida, and Georgia have no statewide SOI law as of this writing, but that can change fast — several state legislatures introduced SOI bills in their 2025-2026 sessions. Check your state's landlord-tenant statute or your city attorney's office before you finalize any listing language.

What can landlords still legally do when screening Section 8 applicants?

You can still apply the same objective screening criteria you'd use for any applicant. SOI laws stop you from rejecting someone because they're paying with a voucher — they don't stop you from checking credit history, verifying income-to-rent ratio on the tenant-paid portion, running a background check, or requiring a security deposit within your state's legal limit.

What you can't do is set a minimum credit score specifically designed to exclude voucher holders, or refuse to complete the Housing Assistance Payments (HAP) contract paperwork the local housing authority requires. You also can't skip the required Housing Quality Standards (HQS) inspection — voucher units must pass checks on things like working smoke and carbon monoxide detectors, safe outlets and grounding, and adequate electrical service for the unit's appliance load. Failing an HQS inspection isn't discrimination, but if you're only maintaining those systems for voucher units and letting other units slide, that pattern can look like pretextual rejection in a complaint investigation.

What happens if you violate a source-of-income law?

Penalties range from a few thousand dollars to $50,000 or more for repeat or intentional violations, depending on the state and whether HUD or a state fair housing agency handles the case. New York City, for example, has issued fines well into five figures for landlords caught with explicit "No Section 8" listings, on top of ordering the unit to be offered to the rejected applicant. California's Fair Employment and Housing Council can add attorney's fees and damages for emotional distress on top of civil penalties.

Complaints usually start with a tester call, an online listing screenshot, or a rejected applicant filing with HUD or a state agency. Because listings and rejection emails are discoverable, the safest move is to document your actual screening criteria — credit, income ratio, rental history — in writing for every applicant, voucher or not, so you have a paper trail showing consistent standards.

Should you accept vouchers even where it's not required?

It's worth running the numbers before assuming vouchers are more hassle than they're worth. HAP payments come directly from the housing authority and are generally reliable, and in tight rental markets a guaranteed portion of rent can reduce vacancy days. The tradeoff is the HQS inspection and occasional turnaround delays when a housing authority is backlogged — some take 30-45 days to schedule initial inspections in 2026, longer in high-demand metros. If you're weighing it, factor in that voucher tenants often stay longer once housed, since moving means restarting the paperwork with a new landlord.

FAQ

Can I refuse Section 8 in Texas or Florida?

Yes, currently, since neither state has a statewide source-of-income law as of 2026, though a handful of cities and counties may have local ordinances, so check municipal code before listing a property as voucher-restricted.

Does HUD require landlords to accept Section 8 vouchers?

No. HUD administers the voucher program and sets HQS inspection standards, but participation is voluntary unless your state or local government has passed a law requiring acceptance.

Can I set a higher credit score requirement for voucher holders?

No, where an SOI law applies you must use the same screening criteria for all applicants; applying a stricter standard only to voucher holders is treated as discriminatory even if your listed policy doesn't mention Section 8 by name.

What's the difference between Section 8 and other source-of-income protections?

Section 8 is one specific voucher program, but most SOI laws also cover other lawful income like Social Security, alimony, VA benefits, and other rental assistance programs, so the protection is broader than vouchers alone.

How do I find out if my property is covered by a local SOI ordinance?

Search your city or county's municipal code for "source of income" or "housing status," or call your local fair housing agency directly, since many SOI ordinances exist at the city level even in states with no statewide law.

This is educational information, not legal advice. Consult a fair housing attorney or your state's housing authority before writing screening or listing policies, since source-of-income rules change frequently and vary by jurisdiction.