"No Section 8."

Three words that used to show up in rental ads all the time. In California, they can now get an owner into real trouble.

If you own a rental, or you're thinking about buying one, this is one of the most important fair housing rules to understand. Let me walk you through what changed, what you can still do, and how to screen applicants in a way that's both fair and smart.

Since January 1, 2020, when Senate Bill 329 took effect, California has treated government housing subsidies, including Housing Choice Vouchers (often called Section 8), as a protected "source of income" under the state's fair housing law.

The California Civil Rights Department, the state agency that enforces fair housing, puts it plainly: it's unlawful to refuse to rent to tenants because of their source of income, and that now includes renters who rely on rental assistance.

The law's definition of "source of income" (Government Code section 12927) includes federal, state or local public assistance and housing subsidies, and it covers income paid to the landlord on the tenant's behalf. It also specifically includes VA Supportive Housing (VASH) vouchers for veterans.

This rule isn't just about who you approve. It's also about what you say. Ads that show a preference or limitation based on source of income are unlawful. The state agency launched an enforcement effort against "No Section 8" ads right after the law took effect and said those ads "must be taken down." In 2023 it filed its first lawsuit to enforce these protections for voucher holders.

So check your listing language, your rental website and anything a leasing helper might post on your behalf.

This is where many owners get tripped up without meaning to.

A lot of owners use a rule like "income must be X times the rent." Under Government Code section 12955(o), when there's a government rent subsidy, you can't use a financial or income standard that isn't based on the portion of the rent the tenant pays.

Here's an example with simple numbers. Say the rent is $2,500 and the voucher covers $1,800. The tenant's portion is $700. If you normally require income of three times the rent, you'd apply that test to the $700 the tenant pays, not the full $2,500.

The law doesn't ask you to lower your standards. It asks you to apply them the same way to everyone. As one county fair housing office summarizes it, landlords can still screen applicants on references, rental history and credit history, as long as the same criteria are applied equally to all applicants.

And state law says it isn't discrimination to ask, in writing or verbally, about the level or source of an applicant's income. You're allowed to verify that the income is real. You just can't reject someone because of where it comes from.

1. Remove any "No Section 8," "no vouchers" or "no assistance" language from every ad and listing.
2. Write down your screening criteria, and use the same criteria for every applicant.
3. If an applicant has a voucher, apply your income test to the tenant's share of the rent only.
4. Don't charge a higher deposit or different terms because of how someone pays their rent.
5. Keep notes on why each application was approved or denied, based on your written criteria.
6. If you're unsure, ask before you act. The Civil Rights Department publishes guidance for housing providers, and a real estate attorney can review your process.

Fair housing rules keep changing, and getting them wrong can be expensive and stressful. If you own a rental anywhere in San Luis Obispo County and want help with fair, consistent screening, or you're simply weighing whether to manage it yourself, I'd love to talk. Call or text me at (805) 400-5543, email CentralCoastLiz@gmail.com, or reach out through my contact page.

Liz Anderson, Broker/Owner, Central Coast Premier Realty | DRE #01462145

General information, not legal advice. Fair housing laws change, and local rules may add protections. Talk with a qualified attorney about your specific situation.

Equal Housing Opportunity.

• California Civil Rights Department, "DFEH Launches Enforcement Action Against Discriminatory 'No Section 8' Housing Advertisements" (Feb 3, 2020)
• California Civil Rights Department, "CRD Files First Lawsuit to Enforce Protections For Housing Choice Voucher Holders" (Jan 4, 2023)
• SB 329 (2019), chaptered text
• Marin County Community Development Agency, "Source of Income Protection"