In Practice
The source of income meaning in housing is simple: it is how a person pays rent. That could be a paycheck, Social Security, disability benefits, child support, alimony or a housing voucher. Source of income is not a protected class under the federal Fair Housing Act, but many states, cities and counties protect it, and some of those laws specifically cover housing vouchers.
In a protected area, you cannot refuse an applicant just because their income comes from a lawful source, including a voucher. You can still screen, and you can still require that the person meets your standard income and rental history criteria, applied the same way to everyone. Ads that say 'no vouchers' or 'no Section 8' can be violations in those places.
Example: an applicant has a housing choice voucher and a clean rental history. In a protected jurisdiction, you handle the application like any other, and you work with the housing authority on inspection and paperwork. How you calculate the income test may need to change, since the voucher covers part of the rent.
The mistake is assuming that because federal law does not cover it, you are safe. Check your local rule for each property, since a portfolio can span several jurisdictions. Also note that source of income is different from the amount of income. You can set a reasonable minimum income, but you generally cannot exclude a lawful source. Update your screening criteria, ads and leasing scripts to match, and have counsel review them.
Source of Income: Common Questions
Is source of income a protected class?
Not under federal law, but many states and local governments protect it. Check the law in each place you operate.
Can a landlord refuse housing vouchers?
In places with source of income protection, generally no. In places without it, policies vary, but check local law and fair housing guidance.
What counts as a source of income?
Wages, self-employment, retirement and Social Security, disability benefits, child support, alimony and housing assistance such as vouchers are common examples.
