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Vouchers Can't Be Refused Anymore: 5 Screening Mistakes Delaware Landlords Must Fix by January 1

Writer: Advanced Realty
Advanced Realty
6 days ago
7 min read

If your Delaware rental policies still say “no Section 8,” your screening process needs immediate attention.

As of January 1, 2026, Delaware landlords generally may not reject a rental applicant because the applicant plans to use a Housing Choice Voucher, commonly called Section 8, or another lawful source of income. The change removed the former protection for landlords who declined to participate in government rental assistance programs.

This does not mean landlords must approve every voucher applicant. You can still screen applicants for credit, rental history, criminal history, references, occupancy, and other lawful criteria. The important requirement is consistency: the same commercially reasonable standards must be applied regardless of how an applicant pays rent.

Here are five screening mistakes Delaware landlords should fix now.

What Delaware’s source-of-income protection means

Delaware’s Fair Housing Act identifies source of income as a protected housing characteristic. Under 6 Del. C. § 4602(29), source of income includes money paid directly, indirectly, or on behalf of a renter, including income or rental payments from a government or private assistance, grant, or loan program.

Housing Choice Voucher payments fall within that definition.

The law makes it unlawful to refuse to rent, refuse to negotiate, make a dwelling unavailable, or impose different terms because of a protected status, including source of income. Advertising that indicates a preference or limitation based on source of income is also prohibited under 6 Del. C. § 4603.

The change was enacted through Senate Substitute 1 for Senate Bill 293, signed in 2024. The legislation specifically delayed implementation until January 1, 2026, giving Delaware public housing authorities time to streamline voucher procedures and educate landlords.

The practical takeaway is straightforward: you cannot use “Section 8” or “voucher” status as an automatic reason to deny an otherwise qualified applicant.

Mistake #1: Keeping a blanket “no Section 8” policy

A written or informal policy that says “we do not accept Section 8” is the clearest mistake to correct.

Examples include:

  • “No Section 8.”

  • “No vouchers.”

  • “Government assistance not accepted.”

  • “Must have employment income.”

  • “We do not participate in subsidized housing.”

  • Instructing leasing staff not to show properties to voucher holders.

The issue is not simply the wording. A blanket policy can prevent an applicant from viewing a property, submitting an application, or being evaluated under the same standards as other applicants.

Landlords may still decide not to participate in a particular government program under the circumstances permitted by current law, but nonparticipation cannot be used as a pretext to discriminate against applicants based on lawful income. Have an attorney review any policy that attempts to distinguish between declining program participation and refusing voucher applicants.

A safer approach is to state that all applicants are evaluated under the same written rental criteria and that applicants using lawful rental assistance are welcome to apply.

Mistake #2: Using discriminatory advertising language

Delaware law does not only regulate what happens after an application is submitted. It also regulates rental advertising.

Under § 4603(b)(3), landlords may not publish a statement or advertisement that indicates a preference, limitation, or discrimination based on source of income.

Review every place your rental is advertised, including:

  • Your website

  • Rental listing platforms

  • Social media posts

  • Yard signs

  • Printed flyers

  • Email templates

  • Text-message scripts

  • Instructions given to real estate agents or leasing staff

Remove language that discourages voucher holders from applying. Also review less obvious phrases such as “employment income required” or “rent must be paid entirely by the tenant,” unless those statements accurately describe a neutral, lawful requirement applied to every applicant and do not exclude lawful assistance.

A compliant listing can focus on the property itself: rent, deposit, utilities, occupancy limits, amenities, lease terms, and the standard application process. If the property is available to Housing Choice Voucher participants, saying so clearly can expand your applicant pool.

For official housing-search resources, landlords can review Delaware Housing Search and applicable landlord guidance from the Delaware State Housing Authority.

Mistake #3: Treating voucher applicants differently during screening

A voucher applicant should not be treated as a separate, less desirable category of applicant.

Different treatment may include:

  • Refusing to schedule a showing

  • Delaying an application

  • Requiring an unnecessary in-person meeting

  • Asking intrusive questions about why the applicant receives assistance

  • Making discouraging comments about inspections or paperwork

  • Refusing to communicate with the applicant

  • Requiring additional references that are not required from other applicants

  • Charging a special voucher-processing fee

The landlord’s role is still important. The housing authority determines voucher eligibility and program participation. The landlord evaluates whether the applicant meets the property’s neutral rental criteria and whether the unit can be approved under program requirements.

That means every applicant should move through the same basic process:

  1. Receive the inquiry.

  2. Offer the same showing opportunities.

  3. Provide the same application.

  4. Apply the same written criteria.

  5. Document the decision.

  6. Complete the housing-authority process when the applicant qualifies and the property is selected.

A voucher may require additional administrative steps, such as a Request for Tenancy Approval, rent-reasonableness review, and inspection. Those program steps should not become a reason to discourage or disadvantage the applicant.

Property manager conducting a rental property inspection with a tenant

Mistake #4: Applying stricter financial standards to voucher applicants

Delaware’s source-of-income protections do not eliminate financial screening. They require landlords to evaluate income fairly.

Under 6 Del. C. § 4607(h), landlords may consider the sufficiency or sustainability of income and the applicant’s credit rating when those requirements are applied in a commercially reasonable manner and without regard to source of income.

In practice, this means you can still evaluate:

  • Credit history

  • Rental payment history

  • Prior evictions

  • Lease violations

  • Criminal history, where legally permitted

  • Landlord references

  • Personal references

  • Occupancy limits

  • Ability to pay the tenant’s share of rent

  • Whether total approved assistance and tenant contributions cover the contract rent

What you should not do is count only the applicant’s wages while ignoring the voucher portion, then claim the applicant fails an income multiple that non-voucher applicants would satisfy using their full lawful income.

For example, if your policy requires income equal to three times the monthly rent, applying that formula to the entire rent may unfairly penalize a voucher holder when the housing authority will pay an approved portion directly to the landlord. A policy may instead assess whether the applicant can meet the tenant’s required share, provided the policy is lawful, commercially reasonable, and applied consistently.

Because income calculations can become complicated, landlords should have their screening policy reviewed before using it with voucher applicants.

Mistake #5: Failing to document consistent screening standards

If a housing decision is questioned, a landlord should be able to show exactly how the decision was made.

Informal screening creates unnecessary risk. Avoid relying on statements such as:

  • “That applicant did not seem like a good fit.”

  • “We usually do not rent to people with vouchers.”

  • “The owner prefers working tenants.”

  • “The paperwork seemed like too much trouble.”

  • “We denied the application because the process would take longer.”

Instead, maintain a written screening policy and an application record showing:

  • The criteria in effect when the application was received

  • The documents requested from every applicant

  • The results of credit and background checks

  • Rental and landlord reference information

  • The rent amount and tenant share

  • Any legitimate reason for approval or denial

  • Communications with the applicant

  • Communications with the applicable housing authority

  • Inspection, rent-approval, or RFTA records when applicable

Documentation does not replace fair decision-making, but it helps demonstrate that decisions were based on neutral criteria rather than the applicant’s source of income.

It also allows a property manager to identify inconsistencies before they become complaints.

What landlords can still screen for

The new law does not require landlords to ignore legitimate risk factors. A Delaware landlord may generally continue to apply neutral standards involving:

  • Creditworthiness

  • Rental history

  • Prior evictions

  • Criminal history, subject to applicable law

  • References

  • Occupancy and property-use requirements

  • Ability to pay the applicant’s portion of rent

  • Compliance with lease requirements

  • The sufficiency and sustainability of lawful income

The standard must be written, relevant, commercially reasonable, and applied without regard to whether rent comes from wages, a voucher, benefits, a pension, child support, or another lawful source.

A landlord may deny an applicant for a legitimate, documented reason that would also apply to a non-voucher applicant. The landlord may not deny the applicant simply because the rent will be paid partly through a Housing Choice Voucher.

How Advanced Realty Solutions helps Delaware landlords stay compliant

Source-of-income compliance is only one part of managing a voucher property. Landlords must also coordinate with the appropriate public housing authority, complete paperwork, prepare for inspections, track Housing Assistance Payments, collect the tenant’s share, and respond quickly to maintenance issues.

Advanced Realty Solutions is a Delaware property management company with 15 years of experience as real estate investors and managers of more than 200 units. Our services include leasing, tenant screening, rent collection, Section 8 coordination, inspections, owner accounting, legal filings, and maintenance.

Our team understands the practical requirements of managing low-income housing and Housing Choice Voucher rentals. We apply consistent screening procedures, coordinate the administrative process, and help keep properties safe, compliant, and ready for inspection.

We also provide in-house property maintenance, including plumbing, electrical, HVAC, flooring, painting, lock changes, cleaning, and other rental-property repairs.

Lease agreement and Section 8 housing assistance contract for Delaware rental property

A January 1 compliance checklist for landlords

If you have not updated your process, take these steps now:

  1. Remove blanket “no Section 8” and “no voucher” policies.

  2. Review all advertising and listing language.

  3. Train owners, leasing staff, agents, and vendors on the new requirements.

  4. Use one written screening policy for all applicants.

  5. Evaluate voucher assistance as lawful income.

  6. Apply income, credit, rental, criminal, and reference standards consistently.

  7. Document every approval and denial.

  8. Review deposits, fees, lease terms, and other conditions for unequal treatment.

  9. Confirm current procedures with the applicable housing authority.

  10. Consult a qualified Delaware housing attorney about questions specific to your property.

Maintenance technician repairing water heater electrical system in a rental property

The law has changed, and outdated screening habits can create avoidable exposure. Delaware landlords do not have to surrender reasonable screening standards: but they do need to apply those standards fairly.

For help with Section 8 leasing, source-of-income compliance, inspections, maintenance, and day-to-day rental operations, contact Advanced Realty Solutions.

This article is for general educational purposes and is not legal advice. Delaware housing laws, regulations, public housing authority procedures, and federal program requirements may change. Consult qualified legal counsel and the applicable housing authority for advice regarding a specific property or applicant.

 
 
 

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