New Michigan Section 8 Laws: What Can Landlords Do?
We spoke recently about new proposed legislation (Senate Bills 205-208) that would prevent landlords from being able to discriminate against tenants on the basis of their source of income.
If passed into law, this would mean that any landlord with 5 or more properties in the state of Michigan would be unable to reject Section 8 applicants.
We’ve already explored the details of the proposal in another article, but today we want to look at how this might play out, as well as talk about some proactive strategies for landlords to protect their investments, in the event that these bills do pass.
Let’s get into it.
The Example: Kansas City
Kansas City is a great case study for what happens when this kind of legislation is passed.
Back in August 2024, the city enacted an ordinance that made it illegal for landlords to reject tenants based on their source of income.
Almost immediately, two local landlords filed a federal lawsuit to push back against the law.
Their main argument?
Forcing them to accept tenants reliant on government-funded vouchers—essentially mandating participation in the Section 8 program—overstepped boundaries and violated their constitutional rights.
One landlord had even participated in the program before, but dropped it due to all the headaches—inspections, delays in payments, and the risk of tenants losing their voucher status and taking the landlord down with them financially. Others worry the city’s mandate forces them to waive certain Fourth Amendment rights around inspections and access to their properties.
On top of that, the voucher program often comes with strings that complicate property management. From delayed payments to piles of paperwork, the system doesn’t always work in landlords’ favor.
And when local governments push laws like these without offering proper incentives or addressing affordable housing shortages, it’s no surprise that landlords start looking for ways to exit the rental market altogether.
The Bigger Problem
Here’s the kicker, though—at the same time Michigan is considering requiring landlords to accept Section 8 tenants, they’ve actually stopped issuing new Section 8 vouchers.
Yep, that’s right.
Michigan halted its Housing Choice Voucher program in September of 2024 due to a federal funding shortfall.
About 85,000 people remain on the waitlist, but without new vouchers being issued, many of those low-income families needing help are left in limbo.
Think about it—this creates a double-edged sword for landlords.
The state’s lack of affordable housing programs, combined with rising rent costs and the voucher freeze, puts the onus on landlords to solve a housing crisis they didn’t create.
One thing’s for sure, though. Between lawsuits like the ones happening in Kansas City and landlords scrambling to adapt to legal changes, Michigan could be headed for a bumpy road.
How Landlords Can Adapt
Okay, so what if this legislation does pass? First off, don’t panic.
There are many ways you can still conduct thorough financial screening and still comply with these hypothetical new requirements:
- Lease Terms Matter
Consider offering month-to-month leases instead of annual ones.
Some Section 8 programs require landlords to provide a one-year lease, and switching to shorter terms might make your property less appealing to voucher tenants while keeping you legally in the clear.
- Tighten Screening Criteria
You can’t discriminate based on income source, but you can set clear standards for credit scores and income levels. For example, some landlords have found success raising credit requirements to better assess financial responsibility.
Don’t forget to enforce minimum income dollar amounts as a qualification. For instance, instead of saying “3x the rent,” you could require that an applicant makes at least $3,000 a month.
- Streamline the Application Process
Some landlords recommend sticking to open houses and paper applications. This can help filter out less serious candidates while keeping the process fair for everyone.
- Stay Compliant During Communication
A simple yet effective tip—respond to Section 8 inquiries neutrally.
For example, saying, “We accept all applicants,” ensures you’re compliant without making promises that could limit your options down the line.
What Does This Mean for Michigan Neighborhoods?
Supporters of the new bills argue they’ll create more equitable access to quality housing.
But will it really play out that way?
If Kansas City is any indicator, there’s reason to be skeptical.
Take Kansas City advocate groups’ claims—their new law was supposed to open up more neighborhoods to low-income families. Instead, landlords raised rents to price themselves out of Section 8 territory, and in some cases, pulled away from the rental market altogether.
The harsh reality is this—when government programs fail to address the root causes of affordable housing shortages, these policies can backfire. It doesn’t matter how many laws you pass; if landlords aren’t given the tools or incentives to support low-income renters, the system cracks under its own weight.
Final Thoughts
Michigan’s proposed legislation might sound like an effort to solve the housing crisis, but it’s really just a Band-Aid.
At its core, this is a supply issue—there simply aren’t enough affordable housing units to go around.
The burden of fixing that shouldn’t fall squarely on landlords. They’re running businesses, not charities, and they didn’t create this mess in the first place.
That said, staying informed and prepared is your best defense as a landlord. By tightening your criteria, implementing smart lease strategies, and keeping close tabs on legislation, you can adapt to whatever happens next.
And trust us—if these bills become law, we’ll be here to help you fight back.
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