Section 8 Tenant Inquiry Gone Wrong? Here's What Happens

Dar Mardan, CPA and Realtor, explains why California landlords need to be careful the moment a prospective tenant asks, "Do you accept Section 8?" Under California fair housing law, source of income is protected, so saying "we don't take Section 8" can itself become evidence of discrimination. The safer answer: all applicants are welcome to apply, and everyone is screened using the same criteria.

What this video covers

  • Why one wrong sentence to a Section 8 applicant can lead to a discrimination lawsuit
  • Why many landlords hesitate when they hear "Section 8"
  • What Section 8 is and how housing vouchers work
  • Source of income as a protected class under California fair housing law
  • The recommended response to "Do you accept Section 8?"
  • Why texts, emails, phone calls and advertising can all become evidence

Key facts at a glance

  • Section 8 is a government housing assistance program; part of the tenant's rent is paid through a voucher administered by a local housing authority.
  • In California, source of income is a protected class under fair housing law.
  • Landlords generally cannot reject an applicant simply because they use a housing voucher or Section 8 assistance.
  • Statements like "we don't take Section 8" or "we don't accept vouchers" can be used as evidence of discrimination.
  • Suggested response: all applicants are welcome to apply, and every applicant is evaluated using the same screening criteria, including credit history, income, rental history, references and ability to meet the lease requirements.

Quick answers

Is it legal in California to turn away a tenant because they have a Section 8 voucher? No. Since January 1, 2020, California law treats housing vouchers as a protected source of income, so refusing someone because they use Section 8 or another rent subsidy is considered discrimination.

Can I put "No Section 8" in my rental listing? No. A listing, text or email that says you don't accept Section 8 or vouchers can be treated as evidence of discrimination, and California regulators have specifically gone after "No Section 8" ads.

What should I say when someone asks if I accept Section 8? A safer reply is that all applicants are welcome to apply and that every applicant is evaluated using the same screening criteria, such as income, credit history, rental history and references. The point is to apply the same standards to everyone.

Can I still deny a Section 8 applicant who doesn't meet my screening criteria? You can deny an applicant for legitimate screening reasons applied consistently to everyone, just not because they receive housing assistance. California adds specific rules for voucher holders, including how income requirements are calculated and the applicant's right to offer alternative proof of ability to pay instead of credit history, so check current requirements with a qualified attorney before deciding.

Why do landlords end up in fair housing complaints over Section 8? Often the complaint isn't about whether the tenant qualified; it's about how the landlord responded. A blanket "we don't take vouchers" in a call, message or ad is what tends to create the problem.

This page is general information, not legal advice. For questions about a specific situation, consult a California fair housing or landlord-tenant attorney.

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Full transcript

Before answering a Section 8 inquiry on your rental property, you need to watch this video, because one wrong sentence could trigger a discrimination lawsuit that can cost you tens of thousands of dollars. I'm not kidding you. This is real-world risk and not a hypothetical situation.

A lot of landlords and real estate investors become nervous when they hear the words "Section 8." Their concern is usually financial. They worry the tenant may have financial difficulties and may not qualify, or that there could be future payment problems. And because of that concern, many landlords instinctively want to stay away from Section 8 applicants altogether. Well, the problem is, in the state of California, that response can trigger a serious fair housing issue.

Let's talk about Section 8 for a minute. Section 8 is the government housing assistance program where part of the tenant's rent is paid through a housing voucher administered by a local housing authority. Now, under the California fair housing law, source of income is considered a protected class, which means that landlords generally cannot automatically reject someone simply because they have a housing voucher or Section 8 assistance.

So when a landlord says, "We don't take Section 8," or "We don't accept any vouchers," that statement itself can become evidence of discrimination. And that's where a lot of shark lawyers step in and sue you. And this is exactly where many landlords can get into trouble, and they pay $50,000 to $100,000 in settlement fees. These are attorneys and law firms actively targeting rental property owners and investors over fair housing violations. In many situations, the lawsuit is not even about whether the tenant qualified. The issue is how the landlord responded, and they discriminated.

So when someone asks you, "Do you accept Section 8?" the safer and more appropriate response is: "All applicants are welcome to apply. We evaluate every applicant using the same screening criteria, including credit history, income, rental history, references, and ability to meet the lease requirements." That's the key. I'm going to put that phrase in the description. You can use that. I'm also going to put it up here so you can see it as well.

You're applying the same standards equally and consistently to every applicant. That is the key. You may still deny an applicant based on legitimate screening criteria, but you don't deny them simply because they receive housing assistance. Make sure you watch this video a couple of times. I don't want you to get sued.

If you own rental property in California, you need to understand these rules, because one wrong sentence in a text message, email, phone call, or even advertising can become evidence in a discrimination complaint. Believe me, people put that in the advertising, and they're asking for trouble.

My name is Dar Mardan. I'm a Realtor and a CPA in Orange County. The link to connect with me to discuss your real estate issues, or if you just want to have a strategy session to talk about any other issues, is in the description. Looking forward to connecting with you.