How to Become a Section 8 Landlord
To become a Section 8 landlord, rent to a tenant who holds a Housing Choice Voucher. Your local public housing authority (PHA) then inspects the unit, approves the rent and signs a contract to pay its share straight to you each month, while the tenant pays the rest. You still screen the tenant yourself. It's a solid path in how to become a landlord if you can handle paperwork and inspection timing.
By LandlordTested editorial teamLast reviewed
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How the Housing Choice Voucher program works
Section 8 is the common name for the Housing Choice Voucher program. HUD funds it, and local public housing authorities run it. A family that qualifies gets a voucher and goes looking for a rental on the private market. If they find yours and you agree, the PHA approves the unit and the rent, then pays part of the rent directly to you every month.
The split works like this. The tenant typically pays about 30% of their adjusted monthly income toward rent and utilities. The PHA pays the rest, called the housing assistance payment (HAP), up to its payment standard. At the start of a new lease, the family’s share can’t exceed 40% of their adjusted monthly income.
An example: you rent a two-bedroom for $1,600. The PHA calculates the tenant’s share at $450, so the PHA pays you $1,150 and the tenant pays you $450. If the tenant’s income drops later, their share falls and the PHA’s rises.
Payment standards vs fair market rent
Two numbers decide how much rent a PHA will approve.
Fair Market Rent (FMR) is published by HUD each year for every metro area and non-metro county, by bedroom count. In some metros, HUD uses Small Area FMRs set by ZIP code, so higher-cost neighborhoods get higher figures.
The payment standard is set by the PHA, usually between 90% and 110% of the FMR. It’s the most the PHA will count toward rent plus utilities when it calculates its payment.
Two more checks apply:
- Rent reasonableness. The PHA compares your rent with similar unassisted units nearby. A rent that fits under the payment standard can still be cut if it’s above comparable units.
- Utility allowance. If the tenant pays some utilities, the PHA adds an allowance for them. Rent plus that allowance is the “gross rent” compared with the payment standard.
Your PHA publishes its payment standards and utility allowances, usually on its website. Check them before you set a rent you expect a voucher holder to pay.
From voucher holder to first payment
1. Screen the applicant
Screen voucher holders with the same written criteria as everyone else: rental history, eviction records, and income within the limits your local law allows. The PHA checks program eligibility, not tenant quality.
2. Fill in the Request for Tenancy Approval
The tenant gives you a Request for Tenancy Approval (RFTA) packet. You fill in the proposed rent, deposit, which utilities you’ll pay, the unit’s details and the year it was built (for lead paint rules). The tenant returns it to the PHA.
3. Rent review
The PHA checks the rent against its payment standard and its rent reasonableness data. If the rent is too high for the family to afford under the program, the PHA may ask you to lower it or the family may need to find another unit.
4. Inspection
The PHA inspects the unit before the tenancy starts. If it fails, you get a list of repairs and a reinspection date.
5. Sign the lease and the HAP contract
You sign a lease with the tenant that includes HUD’s tenancy addendum, and a HAP contract with the PHA. The HAP contract is what obligates the PHA to pay you.
6. Payments start
The PHA pays its share each month, usually by direct deposit. The tenant pays their share to you directly. Expect paperwork for the first payment: a W-9, proof of ownership and your bank details.
7. Ongoing inspections and recertification
The PHA reinspects the unit periodically and recertifies the family’s income, usually each year. Changes in income change the split between tenant and PHA, not your total rent.
Inspections: HQS and NSPIRE
For years, voucher units were inspected under HUD’s Housing Quality Standards (HQS). HUD is moving the program to its newer NSPIRE inspection standards, and PHAs are switching on different schedules. Ask yours which one applies.
Either way, inspectors look at the same core things:
- Working smoke alarms, and carbon monoxide alarms where required
- Safe heating, hot water and electrical systems, with no exposed wiring
- Doors and windows that open, close and lock
- Working plumbing, toilet, sink and kitchen appliances
- No peeling or chipped paint in pre-1978 housing, which triggers lead-safe work rules
- No pest infestations, major leaks or tripping hazards
Life-threatening problems found during the tenancy typically must be fixed within 24 hours; other failures usually get a longer deadline, often 30 days. If you miss the deadline, the PHA can stop (abate) its payments until the repair is done, and it can end the HAP contract.
The HAP contract and the lease
The HAP contract runs alongside your lease. A few rules worth knowing:
- No side payments. You can’t charge the tenant more than their approved share, and you can’t collect extra “under the table.” It’s a serious violation.
- Ending a tenancy follows the lease, the tenancy addendum and your state’s eviction law. Send the PHA a copy of any termination notice your contract requires.
- If the tenant moves out, the HAP contract ends and payments stop. Notify the PHA right away.
- Selling the property. The HAP contract and lease usually transfer to the buyer, with PHA paperwork.
Source-of-income laws
Under federal law, accepting vouchers is voluntary. Many states and cities have changed that with source-of-income protections, which bar landlords from refusing a tenant because they pay rent with a voucher or other lawful income. States with such laws include California, New York, New Jersey, Washington, Oregon, Massachusetts, Colorado and Illinois, and many cities and counties have their own.
Where these laws apply:
- You can’t advertise “No Section 8” or “no vouchers.”
- You still screen with lawful criteria applied equally to every applicant.
- Some laws limit how you apply minimum-income requirements to voucher holders, for example by counting only the tenant’s share of rent.
Check your state and city rules before you write your screening criteria.
Pros and cons for a small landlord
| Pros | Cons |
|---|---|
| The PHA’s share arrives on schedule, even if the tenant’s income drops | Inspections and paperwork add time before the first payment |
| A large pool of applicants in many markets | Rent is capped by payment standards and rent reasonableness |
| Voucher families often stay for years | Payments can be abated if repairs miss the deadline |
| Annual inspections catch problems early | Rent increases need PHA review |
Before you sign up
Call your local PHA and ask for its landlord packet. Many hold landlord briefings, and some offer incentives like signing bonuses or damage funds. Ask about payment standards for your bedroom count, inspection wait times, which standard (HQS or NSPIRE) it uses, and how fast new landlords receive their first payment. This is general information, not legal advice; voucher tenancies carry federal and local rules that can change.
Questions landlords ask
The questions we get most, each answered in a paragraph.
How much does Section 8 pay landlords?
The PHA pays the difference between the approved rent and the tenant's share, which is typically about 30% of the tenant's adjusted income. The approved rent has to fit under the PHA's payment standard, which is usually set between 90% and 110% of HUD's Fair Market Rent, and pass a rent reasonableness test against similar unassisted units. Your local PHA publishes its payment standards by bedroom count.
Can a landlord refuse a Section 8 tenant?
Under federal law, accepting vouchers is voluntary. But many states and cities have source-of-income laws that ban refusing a tenant because they'll pay with a voucher, including California, New York, New Jersey, Washington, Oregon, Massachusetts, Colorado and Illinois. Where those laws apply, you can still screen voucher holders on the same lawful criteria you use for everyone, but you can't turn them down for the voucher itself.
How long does the Section 8 inspection process take?
It depends on the PHA. After the tenant submits the Request for Tenancy Approval, the PHA schedules an inspection, and some can do it within days while busy agencies take weeks. If the unit fails, you get a list of repairs and a reinspection. Payments start only after the unit passes and the HAP contract is signed, so plan for a gap between approval and the first payment.
Can I raise the rent on a Section 8 tenant?
Usually yes, at the times your lease and the HAP contract allow, typically at renewal. You give written notice to the tenant and the PHA, and the PHA checks that the new rent is still reasonable compared with similar unassisted units. The tenant's share may change as a result. Follow any state or local rent rules as well, and don't collect anything above the approved rent.
Do Section 8 landlords still screen tenants?
Yes. The PHA only confirms the family is eligible for the program. It doesn't screen for rental history, housekeeping or past evictions on your behalf. You can screen voucher holders with the same written criteria you use for every applicant. Some source-of-income laws limit how you apply minimum-income rules to voucher holders, so check your state and city rules.
What happens if a Section 8 tenant doesn't pay their share?
The tenant's portion is their responsibility, and nonpayment is a lease violation handled under your state's normal notice and eviction rules. The PHA keeps paying its share while the HAP contract is in effect. Notify the PHA of any notice or eviction filing as your HAP contract requires, and follow state law closely, since voucher tenancies have their own termination rules.