Is it legal to not rent to Section 8 in San Antonio?

Question

We have a single family house in Converse and get multiple questions about if we accept section 8 housing vouchers. We are fairly new to being landlords, so aren't really very familiar with how the program works. Also, we feel there is additional risk that we don't really want to take on with Section 8 tenants.

I have read that there was a federal lawsuit filed against Texas that would make refusal of Section 8 housing illegal - discrimination of income source - but currently, is it illegal to turn them away?

Don't want to wind up in a sticky situation if we can help it!!

Account Closed · Answer

I had the same question from renters here in CA some years back.  My answer was that I'm not qualified for Section 8, which is totally 100% true.  You can't accept Section 8 before you spend hours and hours going through the Government bureaucracy first, your choice.

Jonathan Taylor Smith · Answer

@Fred Heller & @Carl Fischer - Well, I guess I should not be so hard on Durham (North Carolina) Housing Authority, as my experience with Section 8 as they handle it has not been bad... I've never waited longer than the start of the following month to get paid for a new tenant start, and each month they pay promptly via auto-ACH deposit by the 3rd.

Further, I almost always get higher rents from Section 8 than I do for non-Section 8 within the same development (I own several Townhouses in the same community). And the paperwork / inspection process is fast and easy...

They tell you in advance what the inspection consists of, so it is like taking a test with the answer key right beside you. I put a lockbox on the door and never even have to be present. I've never failed an inspection and my biggest expense to pass has been adding window screens to a location that did not already have them and adding balusters to a deck to narrow the spacing between each - both of which were knocked out quickly by my maintenance person.

As for paperwork... Prospective tenants always try to hand me their large paperwork packet to complete, and I refuse, as I don't need it, since I already have it completed on my computer. I just change the property specific page (of which I already have them pre-filled for each of my properties) and send it along electronically... Takes 10 minutes.

And through proper tenant screening, quarterly inspections, providing a superior product in a "good" area where people actually want to live, and tenant's knowing their voucher is in jeopardy if they damage my property or create conflict - I have little to no problems from my Section 8 tenants who hardly ever move, creating low vacancy expense for me.

But getting back to the original question in the post, participation in the program is voluntary unless something different has been enacted for a specific state / locality - so check with the Housing Authority and/or knowledgeable Eviction Attorney in your area.

But my $0.02 is that if the person seeking to be a tenant in your rental would be approved for all other aspects but for "source of income" being Section 8... Is it really that hard to process some paperwork and comply with an inspection requirement - to get government guaranteed income for a tenant who will likely remain for years and has an extra incentive (loss of voucher) to be a good tenant?

J.T.

Jonathan Taylor Smith · Answer

I believe your answer is correct... Participation in the program as a landlord is voluntary and there are actions you have to affirmatively take in order to qualify your unit for the program and doing those things is not required by law anywhere to my knowledge.

J.T.

Alex Deacon · Answer

@Michelle Felux there is some turmoil going on here in Pittsburgh PA also on this topic. We look at the credit score, criminal BG check and we get landlord references. If they dont pass our criteria then we dont rent to them.

Thats not outside of anything thats legal and is a very fair way to screen all of your tenants. As long as you are consistent in your standards of screening applicants I dont see how you can get into any serious trouble. Seek the advice of a local RE attorney who has vast knowledge on the topic.

Account Closed · Answer

@Michelle Felux  It is a little more complex.  I think the purpose of the lawsuit is to be a test case on disparate impact on protected classes by the refusal of any federally sourced income.

If you want more information you can google...

"Inclusive Communities Project"

Eventually there might be a Supreme Court ruling that would ban all discrimination based on "source of income".

Thomas S. · Answer

I am forced to deal with welfare applicants and like others our legislation states that source of income is not to be used to disqualify applicants. Unlike the American system our welfare department does not inspect our properties to qualify.

I personally do not accept welfare applicants however to this point in time I have always been able to disqualify all applicants by  sticking to rigid screening standards. Minimum credit requirements being the  most useful tool to eliminate applicants.

You should not rely on credit scores alone to accept applicants but it is a valuable tool to eliminate them. If you do set a minimum score never go below it when accepting any applicant otherwise you risk making it invalid as a tool to eliminate applicants in the future. Make sure you set it high enough to be useable.

Michelle Felux · Answer

Thank you for all of your replies! There are a lot of good points to consider on the pro-federal assistance tenant side too. I might look further into that as well just to have a more well-rounded knowledge of how that works.

As of right now, our property has not been through that program's screening, so that is the answer I've adopted. I definitely send them the tenant requirements, though, and would definitely rent to them if they met the criteria. For the future of this particular house, I might look more into the program because our most recent tenants screened out perfectly and then straight up abandoned the house in terrible shape with a one day notice! I like the idea of an incentive to not do that sort of thing..

Bart H. · Answer

No legal advice from me.

But the state of Texas has a law against cities requiring you to take section 8 vouchers.

AS others have pointed out, have your rental criteria and stick to it.  In our case we expect at least 3x's rent/income.  no felonies, no evictions, and high credit scores (from all applicants) to get a lease with a 1 month rent.  ON rare occasions we have requested 2 or more months rent if the credit score is low AND there are extenuating circumstances.  The last time we did that it was several years ago.We charge extra for dogs.

Dave Toelkes · Answer

I have rental property in the city of Frederick, MD. where source of income is a protected class.  If I accept a Section 8 applicant, the local housing authority must inspect my property and approve it before they will allow the applicant to move in.  The inspection is a health and safety inspection, and fairly routine.  If any repairs are required by the inspector, they are generally easy to do and inexpensive.  If my property does not pass inspection without serious upgrades or repairs, the property is not approved for the voucher program and the applicant looks elsewhere.

I have been participating in the Section 8 program for the past 25 years and have had good results.  The Section 8 program pays the voucher portion of the applicant's rent promptly on the first of the month while the tenant pays the balance of the rent from their own income.  If there is any damage due to tenant abuse, the tenant must pay for the repairs or lose their voucher.  As a general rule, my voucher tenants have taken pretty good care of my property.  My longest voucher tenant was with me for 13 years.

Additionally, I outsource day-to-day management to professional property managers who are well versed in the Section 8 program.

Carl Fischer · Answer

@Michelle Felux

I wanted to accept section 8 tenants thought the guaranteed government check would be easy money but to get the proper inspections, paperwork,  and talk to the right people was a nightmare so I Abandoned the idea. It seemed you needed an “in” with the local government. If you are not authorized I don’t think you can offer it.

Is it legal to not rent to Section 8 in San Antonio?

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