Happy Saturday, Housing Heroes!
Despite being illegal in California, Section 8 discrimination is still happening at an alarming rate.
A 2024 undercover investigation by the OC Register revealed that Section 8 discrimination remains widespread. More than half of landlord interactions resulted in outright refusals to accept vouchers, and over 200 landlords, including several well-known real estate companies were documented denying applicants solely because of their source of income.
Since January 1, 2020, that’s against the law.
California’s Fair Employment and Housing Act (FEHA), strengthened by SB329, prohibits landlords from rejecting tenants based on “source of income,” including Section 8 and other housing assistance programs. Yet many housing providers remain unaware of the rule change or misunderstand how it applies to them.
What Is Section 8?
Section 8, officially the Housing Choice Voucher Program is a federally funded program administered by HUD. It helps low-income individuals and families afford safe housing in the private rental market.
Here’s how it works:
- HUD subsidizes roughly 70% of the rent directly to the landlord.
- The tenant typically pays the remaining 30%.
- Vouchers are income-based, generally reserved for households earning below 50% of area median income.
In California, approximately 300,000 residents hold Section 8 vouchers. In counties like San Diego and Orange County, income eligibility thresholds can vary significantly depending on household size.
Despite the financial reliability of government-backed payments, voucher holders often face long waitlists and widespread discrimination.
What Landlords Need to Know
Compliance isn’t optional and the penalties can be costly.
Beyond SB329, another important update went into effect in January 2024:
- SB267 requires landlords to accept alternative evidence of a Section 8 tenant’s ability to pay if traditional credit history is insufficient.
That means blanket denials based on credit scores alone may create legal exposure.
The Section 8 Approval Process (Simplified)
Here’s what landlords can expect:
- Application & Voucher Submission: Tenant submits application, voucher, and caseworker contact info.
- Screening Adjustments: Evaluate alternative documentation if needed (per SB267).
- Caseworker Coordination: Begin approval process with the assigned housing specialist.
- RFTA Submission: Complete the Request for Tenancy Approval form.
- HUD Inspection: Property is inspected to confirm it meets program standards.
- Lease & Payment Setup: Lease is finalized and subsidy payments begin.
When handled properly, the process is straightforward and results in consistent, government-backed rent payments.
Section 8 vs. Rent Control
As California continues debating expanded rent control measures, it’s worth asking whether strengthening and streamlining Section 8 would be more effective.
Faster approvals, expanded funding, and higher income thresholds could help voucher holders secure housing more quickly, while maintaining private market participation.
For Housing Providers
Staying current on fair housing laws isn’t just about avoiding fines, it’s about protecting your business and operating professionally in an increasingly regulated environment.
If you haven’t reviewed your rental criteria recently, now is the time.
Adam, our Sales Manager at Good Life, recorded a helpful breakdown of Section 8 a few years ago.
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P.S. We recently expanded our newsletter into a private Facebook group where we share housing market insights, landlord tips, and behind-the-scenes data from what we’re seeing across California and where you can also connect and interact with other housing providers. We’d love for you to be a part of it.
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.
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Steve Welty
CEO @ Good Life Property Management
DRE #01744610
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