In California, source of income is a protected characteristic, and it expressly includes Section 8 and HUD-VASH vouchers (Gov. Code § 12955(p)(1)). When an applicant has a government rent subsidy, any income standard must be based on the portion of the rent the tenant pays, not the full rent (§ 12955(o)(1)(A); 2 CCR § 12143), and a landlord who checks credit must offer the option of alternative evidence of ability to pay (§ 12955(o)(1)(B)).

The short version

  • You may ask about the level and source of an applicant's income (§ 12955(p)(2)).
  • "Lawful, verifiable income" is defined to include benefits, family payments and all voucher programs (2 CCR § 12140).
  • For a subsidy holder, run the income test against the tenant's share of the rent only.
  • If you use credit history for a subsidy holder, offer alternative evidence such as benefit letters, pay records or bank statements, and reasonably consider it.
  • Count the combined income of people who will live together the same way you would for a married couple (§ 12955(n); 2 CCR § 12142).

What counts as income

The FEHA regulations define "lawful, verifiable income" as income "authorized or sanctioned by law, or not forbidden by law" and "reasonably able to be checked or demonstrated to be true or accurate" (2 CCR § 12140(a)). Section 12140(b) lists what that includes:

  • wages, pensions, support and trust payments;
  • payments from family members or representative payees;
  • all government assistance available for rent, such as Social Security, SSI, SSDI, veterans benefits and CalWORKs;
  • all voucher programs, including Section 8 in all its forms, HOPWA, HOME and HUD-VASH;
  • public rental-assistance programs; and
  • subsidies from nonprofit and charitable organizations.

The statute's own definition of source of income, in § 12955(p)(1) and the parallel FEHA definition in Gov. Code § 12927(i), likewise names Section 8 and HUD-VASH vouchers.

Asking about income is allowed. Under § 12955(p)(2), a written or oral inquiry about the level or source of income is not, by itself, discrimination. The regulations allow income inquiries to verify the level or source stated in an application, to confirm eligibility for subsidized housing or rental assistance, or where required by law (2 CCR § 12141(b)). The rule for the law itself is on the fair housing and source of income page.

Applying an income standard to a voucher holder

The provisions covered here do not set a required ratio of income to rent. Whatever standard you choose, two rules control how it applies to a subsidy holder.

Use the tenant's share only. Section 12955(o)(1)(A) makes it unlawful, where there is a government rent subsidy, to use a financial or income standard "that is not based on the portion of the rent to be paid by the tenant." The regulation says the same: a provider "is only permitted to consider the portion of the rent to be paid by the tenant" (2 CCR § 12143).

For example, suppose a unit rents for $3,000 a month, the voucher pays $2,100 and the tenant's share is $900. If your written standard is income of two and a half times the rent, apply it to the $900, so the applicant needs $2,250 a month, not $7,500. The numbers here are an illustration only.

Offer the credit alternative. If you use credit history for an applicant with a subsidy, you must offer the option, at the applicant's discretion, of providing "lawful, verifiable alternative evidence" of the ability to pay the tenant's portion, "including, but not limited to, government benefit payments, pay records, and bank statements" (§ 12955(o)(1)(B)(i)). If the applicant takes that option, you must give reasonable time to respond and "reasonably consider that alternative evidence in lieu of the person's credit history" (§ 12955(o)(1)(B)(ii)).

You may still verify employment, ask for landlord references and verify identity (§ 12955(o)(2)).

StepWhat to doRule
1Get the subsidy amount and the tenant's share from the applicant or program paperwork2 CCR § 12141(b) allows inquiries to confirm eligibility
2Apply your written income ratio to the tenant's share§ 12955(o)(1)(A); 2 CCR § 12143
3Before using credit history, offer the alternative-evidence option§ 12955(o)(1)(B)(i)
4Set a reasonable response time and note it in the file§ 12955(o)(1)(B)(ii)
5Review the alternative evidence and record how it was weighed§ 12955(o)(1)(B)(ii)
6Verify employment, references and identity on the same terms as other applicants§ 12955(o)(2)

Household income and co-signers

Combine incomes the same way for everyone. An income standard must account for the aggregate income of persons residing together, or proposing to, "on the same basis as the aggregate income of married persons" (§ 12955(n)). If you combine a married couple's incomes, you must also combine the incomes of unmarried people who will live together (2 CCR § 12142).

Co-signers. Allowing a prospective tenant to use a co-signer when their income, limited because of a disability, does not meet the standard is given as an example of a reasonable accommodation (2 CCR § 12176(f)(7)). Separately, the FTC's landlord guidance lists requiring a co-signer as an example of adverse action when it is based on a consumer report, which triggers notice duties; see adverse action notices.

What counts as discrimination against voucher holders

The regulations list adverse actions that count as source-of-income discrimination (2 CCR § 12141(a)). Among them:

  • refusing to negotiate in good faith with a subsidy provider;
  • imposing different procedures for subsidy payments, unless done as a reasonable accommodation;
  • refusing to comply with program requirements;
  • setting less favorable rent, deposits or other financial conditions, including as a condition of accepting a subsidy or voucher;
  • refusing repairs needed to meet a program's habitability standards;
  • falsely saying a unit is unavailable;
  • terminating or threatening to terminate participation in a rental assistance program; and
  • any notice or advertisement, including about accepted forms of payment, that indicates a source-of-income preference.

When you write your criteria, check each line against this list. See writing rental criteria and, for the order of steps, tenant screening step by step. The fee and refund rules that apply to every applicant are on the application and screening fees law page.

For owners

Write the subsidy steps into your screening checklist so they happen on every file, not only when someone asks. Keep a short note in each subsidy file showing the tenant's share, the ratio applied, the date you offered the credit alternative, and what evidence came back. Plan for any steps a voucher program requires as part of the rental timeline, since refusing to comply with program requirements is on the § 12141(a) list.

For renters

If you use a voucher, you can tell the landlord your share of the rent and ask that any income test be applied to that amount. If the landlord checks credit, you may offer benefit letters, pay records, bank statements or other verifiable proof instead, and the landlord must give you reasonable time and reasonably consider it. Payments from family members and charitable subsidies are also included in "lawful, verifiable income" under 2 CCR § 12140. The Coronado guide to applying for a rental covers gathering documents.

Local rules

Some cities add rules on top of state law, such as local just-cause, relocation or rental registration requirements; check your city's code. Coronado has no local rent-control or just-cause ordinance as of October 2026 (based on a review of its code's contents).

Frequently asked questions

What should I do when an applicant has a Section 8 voucher?

Apply your written income standard to the tenant's share of the rent only (§ 12955(o)(1)(A)), offer the credit alternative if you check credit (§ 12955(o)(1)(B)), and offer the same rent, deposit and other terms you offer everyone else. The regulations also list refusing to comply with program requirements and refusing to negotiate in good faith with a subsidy provider as source-of-income discrimination (2 CCR § 12141(a)). Whether to accept vouchers at all is covered on the fair housing and source of income law page.

How do I apply a "three times the rent" rule to a voucher holder?

Apply it to the tenant's portion of the rent only (§ 12955(o)(1)(A); 2 CCR § 12143). If the tenant's share is $900, for example, a three-times rule means $2,700 a month in income, whatever the full contract rent is. The provisions covered here do not set the ratio itself.

Can I require a minimum credit score from a voucher holder?

You may use credit history, but for an applicant with a government rent subsidy you must offer the option of lawful, verifiable alternative evidence of ability to pay the tenant's portion, such as benefit payments, pay records or bank statements, allow reasonable time, and reasonably consider that evidence instead of the credit history (§ 12955(o)(1)(B)).

Do payments from a family member count as income?

The FEHA regulations list payments from family members and representative payees as lawful, verifiable income, along with nonprofit and charitable subsidies (2 CCR § 12140(b)).

This is general information, not legal advice. Laws change; confirm the current text and your situation with a California attorney.

McKee Properties manages rentals from its Coronado office; contact us with questions about your property.

Sources

Verified October 19, 2026.

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