Source of Income Discrimination: "No Section 8" Is Illegal in 24 States

The Law That Doesn't Exist (Except Where It Does)

Jennifer Martinez had a Section 8 voucher worth $1,900/month. She had a job making $3,200/month. Perfect credit - 720 score. References from two previous landlords, both glowing. No evictions, no criminal record, mother of two kids.

She applied for apartments for three months. Sent 23 applications. Got rejected 22 times.

The reasons varied. "Credit requirements." "Income verification issues." "Already rented." "Not a good fit." But Jennifer noticed a pattern: applications were fine until she mentioned her voucher. Then suddenly, problems.

One landlord was honest. "Look, I just don't take Section 8. Too much paperwork, inspections, dealing with the housing authority. I'm sure you're great, but it's my policy."

What that landlord didn't know: Jennifer lives in California. In 2020, California made source of income discrimination illegal. That "policy" of his? $18,000 violation.

Jennifer filed a complaint with the California Civil Rights Department. Screenshot of the landlord's text saying "I don't take Section 8" was all the evidence she needed. Settlement: $18,000 in damages plus landlord had to take fair housing training and change his screening policies.

Here's The Problem

Source of income is NOT protected under federal Fair Housing Act. At the federal level, landlords can legally refuse Section 8 vouchers. Housing and Urban Development (HUD) doesn't enforce source of income discrimination because it's not in the federal law.

But 24 states plus DC have enacted their own laws prohibiting it. Another 100+ cities have local ordinances. So whether you're protected depends entirely on where you live.

If you're in California, New York, Connecticut, Massachusetts, Illinois, Maryland, Oregon, Washington - you're protected. Landlords can't refuse your voucher.

If you're in Florida, Texas, Georgia, Arizona, Tennessee - you're not protected. Landlords can legally say "No Section 8" and there's nothing you can do under fair housing law.

This geographic lottery is absurd. Whether you have housing rights shouldn't depend on which state you happen to live in. But that's where we are.

The Federal Fair Housing Act's Biggest Gap

Fair Housing Act protects seven classes: race, color, national origin, religion, sex, disability, familial status.

Source of income? Not on the list.

This matters because an estimated 2.3 million households use Housing Choice Vouchers (Section 8). They face rejection rates of 25-40% even when their voucher plus wages meet landlord's income requirements and they have good credit and rental history.

Why do landlords refuse vouchers? Some reasons they give:

• "Too much paperwork and inspections" (housing authority inspects property, requires certain standards)
• "Delayed payments" (housing authority pays their portion directly, but on their schedule)
• "Difficult tenants" (discriminatory stereotype - voucher holders are no more likely to be problem tenants than anyone else)
• "My business model doesn't work with vouchers" (translation: I don't want to deal with it)

Some of these are legitimate business concerns. Most are excuses masking bias. Studies show voucher discrimination correlates with racial discrimination - areas that discriminate against voucher holders also discriminate against Black and Hispanic renters, because voucher holders are disproportionately people of color.

Why Federal Protection Matters

Advocates have pushed for years to add source of income to Fair Housing Act. Bills have been introduced in Congress. None have passed.

If federal law protected source of income:

• HUD would enforce it nationwide (more resources than state/local agencies)
• All 50 states would have consistent protection
• Voucher holders could file HUD complaints (easier than navigating state systems)
• Damages and penalties would be higher (federal Fair Housing Act penalties reach $115,000+ vs. $5,000-25,000 in many states)
• National awareness would increase, reducing discrimination

Until then, we have this state-by-state patchwork.

The 24 States (+DC) Where You're Protected

Notice the dates. Twelve of these states added protection since 2018. That's enormous momentum.

Massachusetts and Wisconsin have protected source of income for decades. Connecticut since 1992. These states have strong case law and established enforcement.

California's 2020 law was huge - California has 12% of US population. Illinois, Maryland, Virginia, Colorado all adding protection in 2020 signaled a wave.

Local Protections in Otherwise Unprotected States

Over 100 cities and counties have local source of income ordinances even though their states don't protect it:

• Chicago, IL (before state law)
• Kansas City, MO (Missouri doesn't protect)
• Philadelphia, PA (Pennsylvania doesn't protect)
• Many cities in Texas, despite state not protecting
• Cities throughout North Carolina, Georgia, Florida

You MUST check both your state AND local laws. Your city might protect you even if your state doesn't.

How Source of Income Protection Works

In protected jurisdictions, landlords cannot refuse to rent to you solely because your income comes from a housing voucher (or other lawful source like Social Security, alimony, child support, etc.).

What Landlords CANNOT Do

• "No Section 8" policies: Cannot have blanket refusal of all voucher holders
• Advertising "No vouchers accepted": Violates the law in protected jurisdictions
• Treating voucher income differently: Cannot say voucher "doesn't count" toward income requirements or count it at reduced percentage
• Higher standards for voucher holders: Cannot require higher credit scores, more references, stricter criteria from voucher applicants vs. wage earners
• Refusing inspection: Cannot refuse to participate in housing authority inspection process or create unreasonable delays
• Steering: Cannot steer voucher holders to certain units or buildings while reserving others for non-voucher tenants

What Landlords CAN Still Do

This is critical: Source of income protection doesn't mean landlords must accept unqualified applicants. They can still screen based on:

• Total income (voucher + wages must meet income requirement, but voucher COUNTS toward total)
• Credit score (same minimum for voucher and non-voucher applicants)
• Rental history
• Criminal background (in most states)
• References

The key: Same standards must apply to everyone. Can't have one set of rules for voucher holders and different rules for wage earners.

How Landlords Discriminate (And How You Prove It)

The 2020 Wave: Five States in One Year

2020 was a breakthrough year for source of income protection. Five states enacted laws:

Since 2020, Nevada, New Mexico, and Oklahoma added protection in 2021. Oregon expanded to statewide in 2023. Momentum continues.

Fighting Back: File With State/Local Agency (NOT HUD)

Critical: Because source of income is NOT federal protected class, you CANNOT file HUD complaint. HUD won't investigate.

Instead, file with your STATE or LOCAL fair housing agency:

What to Include in Complaint

• Your contact information and that you have Section 8 voucher
• Landlord's name, property address, contact info
• Date(s) of discrimination
• What happened - what landlord said/did that was discriminatory
• Evidence - attach "No Section 8" ads, emails refusing voucher, texts, etc.
• How it affected you - emotional distress, financial costs, housing instability

Deadlines (Vary by State)

Each state has different filing deadlines:

• Administrative complaint: Typically 1 year from discrimination (some states 180 days, some 300 days - CHECK YOUR STATE)
• Lawsuit: Typically 2-3 years (varies by state)

Don't wait. File within weeks of discrimination, not months. Evidence gets stale, ads get deleted, landlords forget details.

What You Can Win

Typical Settlements

• "No Section 8" ad/policy: $15,000-$25,000
• Pretextual rejection: $10,000-$18,000
• Multiple refusals, extended search: $12,000-$22,000
• Pattern cases (multiple victims): $10,000-$20,000 per victim

Calculate Your Potential Damages

IMPORTANT: First check if your state/city protects source of income. If not, you don't have a case.

Frequently Asked Questions