Many landlords overlook the potential of how to screen Section 8 tenants, but this approach can actually be one of the most rewarding. By accepting voucher holders, you’re tapping into a reliable pool of tenants who depend on government assistance for stable housing. This guide will break down the must-know steps and insider tips!
What Are Section 8 Tenants?
Section 8 tenants are renters who participate in the Housing Choice Voucher Program, a government initiative designed to help low-income individuals and families afford safe, decent housing. Instead of covering the full rent, the government picks up a significant portion, often 70% or more.
As a landlord, it’s a win-win. You get access to a larger pool of tenants and, in many cases, a steady stream of rental income. You’re also helping to provide stable housing for people who need it most!
Benefits of Section 8 Tenants
Taking on Section 8 tenants might not always be the first thing on every landlord’s mind. But it should be.
- Guaranteed Rent: The government pays a portion of the rent directly to the landlord, often covering up to 70% or more of the rent. This reduces the risk of missed or late payments.
- Lower Vacancy Rates: Since many Section 8 tenants are seeking long-term housing stability, they are often more committed to staying in the same place for a longer period.
- Pre-screened Tenants: Tenants who participate in the Section 8 program typically undergo an extensive background check by the local housing authority. Landlords can often expect tenants who are more stable and responsible, as the screening process involves criminal, rental, and income checks.
- Government Support: Landlords benefit from a reliable payment system. The government often directly deposits rent payments, which is especially beneficial for those managing multiple properties.
Public Housing Screening Process: A Landlord’s Guide
The public housing screening process is not as complicated as you might think. Here’s the roadmap:
Step 1: Sign Up as a Participating Landlord
First things first: to accept Section 8 tenants, you’ve got to be a registered landlord with your local housing authority. Once you're in, you’ll get the green light to start accepting Section 8 tenants. You’ll need to provide basic details about your property to make sure it meets the program’s guidelines (more on that in a minute).
Step 2: Tenant Referrals
Once you’re on the radar, the local public housing authority will refer eligible tenants to your property. These tenants have already been pre-screened for financial eligibility and a Section 8 criminal background check, so you know you're getting serious applicants. However, you still have a say in who rents from you!
Step 3: Tenant Screening
Don’t let the government’s involvement in the process lull you into thinking the screening's done for you. While Section 8 tenants have gone through a basic eligibility check, you can still use your usual screening process.
You may be interested: What Is a Portable Tenant Screening Report? (And Should You Use One?)
Step 4: Housing Quality Standards (HQS) Inspection
Before any Section 8 tenant moves in, your property must pass the Housing Quality Standards (HQS) inspection. This inspection checks everything from plumbing to safety measures like smoke detectors.
Step 5: Sign the Lease and HAP Agreement
Once your tenant is approved, it's time to get the paperwork sorted. You’ll sign a lease agreement just like any other tenant, but you’ll also sign a Housing Assistance Payment (HAP) contract with the housing authority.
Legal Guidelines for Screening Section 8 Tenants
Screening Section 8 tenants comes with a few extra rules. The key is understanding what’s allowed, what’s not, and how to stay compliant while still protecting your rental property.
1. Background Check
As mentioned above, you can, and should, run a background check on a Section 8 applicant. Look into past rental history, evictions, and general credit behavior. As long as you apply the same standards to all applicants (Section 8 or not), you're in the clear.
2. Criminal History Check
Landlords can consider criminal history, but you’ll need to tread carefully. HUD guidelines discourage blanket policies (like rejecting anyone with a record), especially if those rules disproportionately impact protected classes. Instead, focus on the nature, severity, and timing of any offense. Violent crimes, drug manufacturing, or recent convictions tied to property damage may be fair grounds for denial.
3. Income Verification
Even though Section 8 covers a chunk of the rent, tenants usually pay a portion out of pocket. It’s still smart to verify that they can cover their share. Ask for recent pay stubs or other income documentation.
4. HUD Compliance
This part matters big time. You can’t deny a tenant just because they use a Section 8 voucher. That’s considered a source of income discrimination, and in many states and cities, it’s illegal. Your screening criteria must be neutral and apply equally to all applicants.
5. Communication
Being clear, fair, and responsive with Section 8 applicants goes a long way. Set expectations upfront, explain your screening process, and be transparent about what you’re looking for in a tenant.
How Long Does the Section 8 Background Check Take?
The background check process for Section 8 tenants can vary depending on the local housing authority.
In general, the housing authority’s own eligibility screening (which includes criminal history and income checks) can take anywhere from a few days to a few weeks. That’s just their part. Once you start your own screening process, things move at your pace. So if you're efficient with tenant interviews, document requests, and property inspections, you can usually wrap up your end in under a week.
Note: You'll also need to schedule and pass the HQS inspection, sign the lease, and complete the HAP contract. So while the background check might be quick, the total process from application to move-in often takes 2–4 weeks.
Do All Apartments Accept Section 8 Tenants? What Landlords Need to Know
No, not all apartments accept Section 8 tenants. While participation in the Housing Choice Voucher Program is technically voluntary at the federal level, many states and cities have passed laws making it illegal to refuse a tenant just because they use a Section 8 voucher.
In areas with “source of income” protection laws, landlords are required to consider Section 8 applicants the same as anyone else. You can still screen tenants based on your usual criteria (credit, rental history, references) but that criteria has to be applied equally to every applicant.
Property Management for Section 8: Is It Worth It?
Section 8 property management has its pros and cons, like anything in real estate.
Pros:
- Reliable income from the housing authority
- High demand for affordable housing means fewer vacancies.
- Long-term tenants are looking for stability, not short-term stays.
Cons:
- Extra paperwork, including Housing Assistance Payment (HAP) contracts.
- Required inspections (Housing Quality Standards) that must be passed before move-in.
- Communication with local housing authorities which can vary in responsiveness.
So is it worth it? For landlords who want consistent cash flow and a stable tenant base, managing Section 8 rentals (or outsourcing it) can absolutely pay off.
Final Thoughts
How to screen Section 8 tenants is a skill every landlord can (and should) master. When done well, you’ll get consistent rent, responsible tenants, and fewer surprises. Check out LeaseRunner for more resources, tools, and tenant screening services!
FAQs
Q1. What does HUD look for on your background check?
When screening Section 8 applicants, HUD-authorized housing authorities typically review:
- Criminal history, especially violent crimes, drug manufacturing, or crimes that could endanger property or neighbors
- Previous evictions, particularly those tied to non-payment or lease violations (If you're looking to challenge an eviction, here's a detailed guide to disputing it)
- Sex offender status, which can be disqualifying in many jurisdictions
- Rental history and any serious lease violations
Q2. How long does the Section 8 background check take?
The Section 8 background check is usually handled by the local housing authority and can take anywhere from a few days to several weeks. If you're a landlord doing your own screening in addition to HUD's, you can typically complete your part in 3–5 business days using tools like credit checks, criminal background reports, and reference calls.