Legal Aspects you Ned to Know

Landlords have many questions about their rights surrounding Section 8 requirements and restrictions. In Maryland, source-of-income protections generally prohibit housing discrimination based on lawful sources of income, including housing assistance such as vouchers. Additionally, Fair Housing Law protects Baltimore City residents from discrimination based on the source of income, which includes vouchers. So, join us below as we discuss important facts landlords should know regarding rental housing vouchers.

Main Takeaways

• The Housing Choice Voucher Program helps eligible households pay for privately owned rental housing, with the local public housing agency generally paying its approved portion directly to the landlord.
• Maryland landlords must follow applicable fair housing and source-of-income protections when considering applicants who use housing vouchers.
• Landlords can still use lawful rental criteria when screening voucher applicants, but they should apply their criteria consistently and follow federal, state, and local screening laws.

What is Section 8?

The Housing Choice Voucher Program, commonly known as Section 8, is a government rent assistance program funded by the U.S. Department of Housing and Urban Development. Congress established Section 8 of the Housing and Community Development Act in 1974. This act’s primary goal was to ensure low-income individuals can find “decent housing and a suitable living environment” outside of public housing units.

In Maryland, residents must apply to the program, meet income requirements, and complete all necessary paperwork. Baltimore property managers who work with voucher holders must also understand the requirements involved in the rental process. After the PHA approves the tenancy and the required documents are completed, the housing agency generally pays its portion of the rent directly to the landlord, while the tenant pays any required portion.

Top Benefits of Rental Housing Vouchers

Rental housing vouchers may scare off some landlords unaware of the benefits they can offer. Not only do they help families and individuals in need, but they are also good for landlords as well. Below we examine a few of these further.

• Consistent Government Payments
• Pre-Screened Tenants
• Targeted Marketing
• A Broader Tenant Base

Consistent Government Payments

The PHA generally pays its approved portion of the rent directly to the landlord under the Housing Assistance Payments contract. The tenant remains responsible for any tenant portion of the rent. Additionally, when the tenant is responsible for a portion of the rent, any violation of the lease or non-payment could jeopardize their voucher status. For landlords, this offers an added incentive for the tenants to pay on time.

Tenant Eligibility and Landlord Screening

PHAs determine whether households meet eligibility requirements for the Housing Choice Voucher Program. However, this eligibility determination does not replace a landlord’s own lawful tenant-screening process. Landlords may apply their established screening criteria to voucher applicants as long as those criteria are applied consistently and comply with applicable federal, state, and local laws.

Targeted Marketing

Section 8 offers many opportunities for landlords to take advantage of targeted marketing sites. If you advertise online, sites such as AffordableHousing.com allow property owners to list rentals and connect with prospective tenants. Many sites specifically set up to attract voucher tenants require a landlord to register first. However, the process is simple for the potential exposure it can offer.

A Broader Tenant Base

Another advantage of rental housing vouchers is an expanded client base for landlords. The high demand for affordable housing in many areas means there is a high demand for Section 8. The program is limited to the number of participants, so many areas have a waitlist. This waitlist often contains hundreds, even thousands, of people. So, how does this benefit landlords? It reliably provides a large number of potential applicants. Therefore, in addition to regular market tenants, this expanded rental pool can help rent your property faster.

Want to Rent to Tenants with Rental Housing Vouchers?

Landlords and real estate investors find many benefits to renting to individuals with rental housing vouchers. However, there is a process involved that can take some time. Let’s take a look at how rental housing vouchers work below.

1. You register with the local public housing office and list your property.
2. Your property will need to pass inspection to determine whether it meets Section 8 housing requirements. Take a look at the inspection checklist if you would like to know what the inspectors will be looking for.
3. If the unit does not pass the inspection, the landlord may need to correct the identified deficiencies before the PHA can approve the tenancy.
4. Once you find a tenant, you sign the Section 8 contract.

Can Maryland Landlords Refuse Housing Choice Vouchers?

Maryland landlords generally cannot reject an otherwise qualified applicant simply because they use a Housing Choice Voucher. However, the tenancy itself must satisfy applicable Housing Choice Voucher Program requirements, including PHA approval, applicable inspection standards, and rent reasonableness requirements. Landlords should also comply with any additional state and local source-of-income protections that apply to the property.

Understanding Fair Housing Discrimination

As we mentioned above, a landlord cannot refuse to rent to a tenant solely because they have a voucher. Doing so is considered income-based discrimination and may lead to a costly lawsuit for landlords. However, landlords may still apply lawful screening criteria to voucher applicants, provided those criteria are applied consistently and comply with applicable federal, state, and local fair housing and tenant-screening laws.

Who Does Fair Housing Law Protect?

The federal Fair Housing Act prohibits housing discrimination based on certain protected characteristics. Maryland and Baltimore City laws provide additional protections for renters and housing applicants. Landlords should understand all federal, state, and local fair housing requirements that apply to their rental properties.

Protected Classes Under the Federal Fair Housing Act

• Race
• Color
• National Origin
• Religion
• Sex
• Disability
• Familial Status

Additional Protections in Baltimore City

Maryland law provides additional housing protections beyond those available under federal law. In addition to the federally protected classes, Maryland protects individuals based on marital status, sexual orientation, gender identity, source of income, and military status.

The current Maryland Commission on Civil Rights housing page lists race, color, religion, sex, familial status, national origin, marital status, sexual orientation, gender identity, disability, source of income, and military status

Navigate Housing Voucher Requirements With Professional Property Management

Managing a rental property comes with several responsibilities, including understanding fair housing requirements and following the rules that apply to housing voucher programs. Staying informed can help landlords maintain compliant rental practices while providing equal housing opportunities to qualified applicants.

Bay Property Management Group works with rental property owners throughout the region, including those who participate in the Housing Choice Voucher Program. Our team can help owners with day-to-day responsibilities such as marketing vacancies, coordinating maintenance, communicating with tenants, and managing their rental properties.

Looking for help managing your rental property? Contact Bay Property Management Group today to learn more about our full-service property management services in Baltimore and the surrounding areas.