A question that often comes up from prospective Seattle Area rental property owners is whether or not they have to accept Section 8 applicants.

Many do not even know what exactly Section 8 means.

Understanding the Section 8 Program

Section 8 is basically a program developed by the U.S. Department of Housing and Urban Development (HUD) where a low-income tenant can apply for housing assistance. This means the government will pay a portion of the rent every month directly to the landlord and the applicant will pay the remaining portion. That portion will change based on the income status of the resident. There is paperwork that needs to be filed with HUD in order to have a Section 8 person in your property. The property also must be inspected and designated as safe and habitable.

Getting Set Up as a Section 8 Provider

Accepting vouchers involves a short onboarding process with your local public housing authority, such as the Seattle Housing Authority or the King County Housing Authority.

The unit has to pass a housing authority inspection before any voucher payments begin, and it is inspected again periodically during the tenancy. Reviewing the unit against the authority’s inspection checklist and making any needed repairs before you apply keeps the process moving.

You also complete the authority’s required forms. These typically include a landlord certification, a W-9 taxpayer identification form, a lead-based paint disclosure, and, once a voucher holder is selected, a Request for Tenancy Approval.

The housing authority reviews the proposed rent for reasonableness against comparable units in the area, so the rent needs to be in line with the local market rather than above it. Once the unit passes inspection and the rent is approved, the authority pays its portion directly to you each month, and the tenant pays the rest, generally 30 to 40% of their monthly income.

Do You Need to Accept Section 8 in Your Seattle Area Rental Property?

In Washington State, source of income is a protected class under RCW 59.18.255, which took effect on September 30, 2018. This means you cannot refuse to rent to an otherwise qualified applicant because their income comes from a housing voucher or other subsidy. Because a Section 8 voucher is a protected source of income, you cannot turn an applicant away on that basis, and this applies statewide.

Some property owners are wary of Section 8, but at SJA Property Management, we have found that this can be a really great and positive situation if done correctly. You have the government guaranteeing a certain portion of the rent every single month, which provides some security and consistency to your rental income. Also we’ve found that Section 8 tenants stay longer on average, decreasing your vacancy rate.

Seattle-Area Local Rules Go Further

Several cities layer additional requirements on top of the state law. In Seattle, Bellevue, Redmond, Kirkland, and unincorporated King County, landlords must offer one-year leases to Section 8 voucher holders and cannot charge a voucher tenant a higher rent than a comparable non-voucher tenant. Seattle’s protections sit in its Open Housing Ordinance (SMC 14.08) and are enforced by the Seattle Office for Civil Rights. Owners with property in these areas follow both the state law and the local ordinance, whichever sets the higher standard.

Follow the Section 8 Policies

When you have accepted and approved a Section 8 tenant for your rental home, you want to make sure you have certain policies in place to give you the best chance of positive outcomes. You want to make sure you are screening the applicant as you would any other tenant.

There is an exception with this, and that pertains to what you’re looking for when you’re evaluating rent to income ratio. You may be using a rent to income ratio of three times the monthly rent or two-and-a-half times the monthly rent, which means that in order to be approved for your property, a prospective tenant must earn at least the equivalent of two-and-a-half or three times the rent every month.

However, with a Section 8 applicant, you would only be making that requirement on the portion that they are paying towards the rent. So, if they are paying $500 of a $1500 a month rental, they would need to make two-and-a-half or three times the $500.

If the tenant does meet all of your other rental qualifications and you do your walk-throughs and get the property properly set up with HUD, it can be a very beneficial landlord/tenant relationship. Often, we have found that these HUD applicants stay in the property a lot longer, which means lower vacancy rates for you. This works out really well.

If you have any more questions regarding Section 8 or any landlord related issues, please feel free to contact us at SJA Property Management.

Frequently Asked Questions

Do landlords in Washington have to accept Section 8?

Yes. Under RCW 59.18.255, which took effect September 30, 2018, source of income is a protected class statewide. A landlord cannot refuse to rent to an otherwise qualified applicant because their income comes from a Section 8 voucher or another subsidy. Landlords can still screen applicants on consistent, non-discriminatory criteria such as credit and rental history.

How is income calculated for a Section 8 applicant?

The voucher amount is subtracted from the total rent before any income requirement is applied, so the ratio is based only on the tenant’s portion. If the rent is $1,500 and the voucher covers $1,000, a landlord using a three-times-rent standard applies it to the tenant’s $500 share, meaning the tenant needs about $1,500 in monthly income rather than $4,500.

Can a landlord still deny a Section 8 applicant?

Yes, for legitimate, non-discriminatory reasons applied equally to all applicants, such as poor credit, negative rental history, or a prior eviction record. What a landlord cannot do is refuse an applicant solely because they use a voucher, or apply a blanket policy that excludes voucher holders.

Do Seattle-area cities have extra Section 8 rules?

Yes. In Seattle, Bellevue, Redmond, Kirkland, and unincorporated King County, landlords must offer one-year leases to voucher holders and cannot charge a voucher tenant more than a comparable non-voucher tenant. Seattle’s protections fall under its Open Housing Ordinance (SMC 14.08), enforced by the Seattle Office for Civil Rights.

What are the benefits of renting to a Section 8 tenant?

A public housing authority pays a significant portion of the rent directly to the landlord each month, which provides a consistent income stream. Voucher holders also tend to stay longer on average, which can lower turnover and vacancy costs.