Steve Welty

Issue# 70

October 2025

Happy Saturday, Housing Heroes!

Shutdowns make the headlines, but as a housing provider, what you really want to know is: how does this affect my rentals, and my tenants?

With the federal government officially in shutdown mode, let’s break down what it means for federally funded housing programs, Section 8 tenants, and even renters who are federal employees.

First Things First: Will Section 8 Payments Continue?

For now, yes. HUD has already obligated funds to keep Section 8 Housing Choice Voucher payments flowing through October, and most likely into mid-November.

That means landlords should continue receiving the government’s share of rent on time for now. Several housing authorities have already confirmed their payments are processing as usual including the Sacramento Housing and Redevelopment Agency, Housing Authority of the City of Los Angeles, Fresno Housing Authority, Santa Clara County Housing Authority, and San Diego Housing Commission

What If Payments Get Delayed?

If the shutdown drags on and funding stalls, here’s the key thing: you cannot evict tenants for HUD’s portion of the rent and you can’t require tenants to cover the government’s share themselves.

Any missed payments will be reimbursed when the government reopens. The best move? Stay patient, stay professional, and work with tenants if delays occur.

Can I Refuse Section 8 Applicants Because of the Shutdown?

No. Source of income discrimination laws mean you must treat Section 8 voucher holders the same as any other qualified applicant.

Even during a shutdown, it’s up to housing authorities to decide if they can issue new vouchers. If funds are tight, they’ll pause issuance, but that’s their call, not yours.

What About Renters Who Are Federal Employees?

This one’s trickier. Federal employees who are furloughed or working without pay may struggle to cover rent. Standard state eviction laws still apply, there aren’t any special protections in place right now.

As a housing provider, showing flexibility and offering payment plans where possible can go a long way in maintaining goodwill (and avoiding costly turnover).

Big Picture

The shutdown is unsettling, but the key takeaway is this:

Section 8 rents are still being paid (for now).
Landlords can’t penalize tenants for delayed government payments.
Housing authorities remain open, but long shutdowns could create funding stress.
Federal employees may need temporary flexibility.

At the end of the day, housing is a partnership. The smoother you navigate these bumps with tenants, the stronger your long-term rental performance will be.

🎥 Section 8 Process for California Landlords: What is it + How it Works, Step-by-Step Guide

Have questions about managing your property?

Our team proudly serves San Diego, Orange, and Riverside Counties. Schedule a call with us today, and let’s chat about how we can guide you through every step of your property management journey.

Schedule a call