What Section 8 landlords do and what it costs to start
A Section 8 landlord rents to tenants who hold a Housing Choice Voucher — a federal subsidy that pays a portion of the rent directly to you. The tenant pays the remainder from their own income. You are not running a charity; you set the rent within limits, screen tenants like any other landlord, and enforce a lease. The main difference is that one of your tenants' income sources is a government check, and the lease must meet federal standards.
Starting costs are minimal. You do not pay a fee to join the program. You will need to pass a housing quality inspection before your first tenant moves in — this checks that the unit meets basic safety and livability standards (working plumbing, heat, no lead paint hazards, functioning smoke detectors). If your property already meets local building codes, you will likely pass. The inspection is free.
After that, your costs are the same as any rental: maintenance, property tax, insurance, and vacancy. Some landlords find that Section 8 tenants stay longer than market-rate tenants, which reduces turnover costs. Others find the paperwork burden not worth the stable income. Both experiences are common.
Key Takeaways
- You set the rent yourself, but it must fall within a range called the payment standard that your local housing authority publishes each year.
- The housing authority pays you directly for the subsidy portion; the tenant pays the rest, and you can evict for non-payment just as you would with any tenant.
- Your property must pass a housing quality inspection before your first Section 8 tenant moves in, and annually or when the tenant changes.
- You cannot refuse a Section 8 tenant solely because they hold a voucher — that is illegal in most states — but you can use the same screening criteria you use for other applicants.
- The lease must include specific federal language, and the housing authority will provide a template or require you to use theirs.
How to register your property with the housing authority
Contact your local public housing authority (PHA) directly. You can find yours by entering your zip code at www.hud.gov/program_offices/public_indian_housing/pha_contacts. Call or visit their website to ask about becoming a Section 8 landlord. Some housing authorities have a formal landlord registration process; others handle it informally as vouchers come available.
You will need to provide the property address, number of bedrooms, and basic information about the unit. The housing authority will tell you the payment standard for your area — the maximum rent they will subsidize for a unit of that size. This is not a price you negotiate; it is set annually by the housing authority based on local market rents. If your rent is below the payment standard, the tenant pays the difference. If you want to charge more than the payment standard, you can, but the tenant must cover the overage, and many cannot afford to.
Once registered, you are on the housing authority's landlord list. When a tenant with a voucher is looking for a unit in your area and size range, the authority may refer them to you. You are not obligated to rent to them, but you must use the same screening standards you use for other applicants.
What the housing quality inspection covers
The inspection happens before your first tenant moves in and annually after that (or when a tenant leaves and a new one arrives). An inspector from the housing authority visits the unit and checks for safety, sanitation, and basic livability. They are looking for working utilities, no pest infestations, no mold or water damage, functioning appliances if you provide them, safe stairs and railings, working locks, and no lead paint hazards if the building was built before 1978.
You do not need to provide furniture, new appliances, or luxury finishes. The standard is "decent, safe, and sanitary" — the same baseline that applies to any rental property in your city. If your unit passes local code inspection, it will almost certainly pass the housing quality inspection. If it does not pass, the housing authority will give you a list of repairs needed. You have a set time (usually 30 days) to complete them and request a re-inspection.
Tenants can also request an inspection if they believe the unit is not meeting standards. If repairs are needed and you do not complete them, the housing authority can stop paying your subsidy until the work is done.
Setting rent and understanding the payment split
You set the rent yourself, but it must fall within the payment standard your housing authority publishes. The payment standard varies by bedroom count and location. For example, a one-bedroom in one county might have a payment standard of $900, while a one-bedroom in a neighboring county might be $1,100. You can charge anywhere from the minimum (usually 90 percent of the standard) up to the standard itself, or sometimes slightly above if the housing authority allows it.
Here is how the money flows: you and the tenant agree on a rent amount. The housing authority pays you their portion (the subsidy) directly. The tenant pays you the difference from their own income. If the rent is $1,000 and the subsidy is $700, the tenant pays $300. If the tenant does not pay their $300, you can evict them for non-payment, just as you would any other tenant. The subsidy is not your money to keep if the tenant does not pay their share.
The payment standard changes once a year. When it does, you can adjust your rent, but you must give the tenant written notice (usually 30 days) before the increase takes effect. If the new standard is lower than your current rent, you are not forced to lower it, but the tenant's share will increase.
Screening tenants and the lease requirements
You can screen Section 8 tenants using the same criteria you use for any applicant: credit history, income, rental history, criminal background (with limits set by fair housing law). You cannot refuse a tenant solely because they hold a Section 8 voucher — that is illegal in most states. But you can reject them for legitimate reasons: eviction history, criminal convictions related to violence or drug dealing, or failure to pay previous rent.
The lease must include specific federal language about the tenant's rights and obligations under the program. The housing authority will either provide you with an approved lease form or require you to use theirs. Do not use your standard residential lease without adding the Section 8 addendum. The lease must state the rent amount, the subsidy amount, the tenant's share, and the term. It must also include language about what happens if the tenant's income changes or if they lose the voucher.
Once the lease is signed, send a copy to the housing authority. They will not sign it themselves, but they need it on file. If there are any disputes later — about rent, repairs, or eviction — the housing authority will refer to that lease.
What happens if a tenant stops paying their share or breaks the lease
If the tenant does not pay their portion of the rent, you can issue a notice to pay or quit, just as you would with any tenant. If they do not pay within the notice period (usually 3 to 5 days, depending on your state), you can file for eviction. The housing authority does not intervene in this process. The subsidy continues to be paid to you while the eviction is pending, but once the tenant is removed, the subsidy stops.
If you evict a tenant for non-payment or lease violation, you must notify the housing authority in writing. The tenant's voucher is not automatically terminated — they can use it to find another unit — but the housing authority will note the eviction in their file. Repeated evictions can affect a tenant's ability to find future housing, but that is not your concern as the landlord.
If the tenant's income increases significantly, they may be asked to pay a larger share of the rent. If they refuse, the housing authority can terminate their voucher. Again, this is not your problem to solve; the housing authority handles it. Your job is to enforce the lease you signed.
Maintenance, repairs, and when the housing authority can withhold payment
You are responsible for all maintenance and repairs, just as you are with any rental. If the unit fails the annual housing quality inspection because of repairs you have not made, the housing authority can stop paying your subsidy until the work is done. This is the main leverage the program has to may support properties stay in decent condition.
Common reasons for failed inspections are broken windows, non-functioning heat or plumbing, pest infestations, or mold. If you receive notice of failed repairs, you have a set time to fix them and request a re-inspection. Until the unit passes, you do not receive the subsidy payment. This is why many landlords find it important to respond quickly to maintenance requests from Section 8 tenants.
You cannot pass repair costs to the tenant through a rent increase or deduction. The rent is set in the lease. If you need to raise rent, you must follow the lease terms and give proper notice; you cannot use repairs as an excuse for an when ready increase.
Frequently Asked Questions
Can I refuse to rent to someone just because they have a Section 8 voucher?
No, not in most states. Refusing to rent based solely on voucher status is illegal under fair housing law in many jurisdictions. However, you can reject an applicant for legitimate reasons: poor rental history, eviction record, or failure to meet your income requirements. The key is that your screening criteria must be applied equally to all applicants, Section 8 or not.
What if the housing authority's payment standard is lower than my mortgage and expenses?
You are not obligated to rent to Section 8 tenants. If the payment standard does not cover your costs, you can choose not to participate in the program or rent only to market-rate tenants. Many landlords do this. The payment standard is set based on area market rents, not on individual property costs.
Do I have to provide appliances or furniture?
No. The housing quality inspection requires that the unit be safe and sanitary, but not that it include appliances or furniture. If you provide them, they must be in working order. If you do not provide them, the tenant is responsible for supplying their own.
What happens if the tenant's voucher is terminated by the housing authority?
If the housing authority terminates the voucher, the subsidy stops. You can continue renting to the tenant at the full rent amount if they can pay it, or you can ask them to leave. The termination is between the tenant and the housing authority; it does not automatically end your lease. You must follow your state's eviction law if you want them out.
How often does the housing authority inspect the property?
At minimum, once per year. Some housing authorities inspect more frequently if there have been complaints or failed inspections. You will receive notice before the inspection. If a tenant requests an inspection because they believe repairs are needed, the housing authority will schedule one separately from the annual inspection.