Can a Voucher Holder Be Denied for Bad Credit in California? (SB 267)

Published August 10, 2026

Not on credit history alone. SB 267 amended Government Code section 12955 so that when a government rent subsidy is involved, a landlord cannot use credit history to deny an applicant without first offering them the chance to submit alternative evidence of their ability to pay, and must reasonably consider that evidence.

The short answer

Not by credit history alone. SB 267 amended Government Code section 12955 so that whenever a government rent subsidy, like a Section 8 voucher, is part of an application, a landlord cannot use the applicant's credit history to deny them without first offering the option to submit alternative evidence of their ability to pay, such as benefit payments, pay records, or bank statements, and then reasonably considering it.

Last verified: August 10, 2026

What SB 267 actually requires

SB 267, approved by the Governor on October 11, 2023, added subdivision (o)(1)(B) to Government Code section 12955, the same Fair Employment and Housing Act section that already barred source of income discrimination under SB 329. The new language targets a specific practice: using a straight credit score cutoff to screen out voucher holders who could not clear it, even when the actual dollar amount they owed each month, after the subsidy, was small.

The statute's core rule is that a housing provider cannot use a person's credit history as part of the application process for a rental accommodation without offering the applicant the option, at the applicant's discretion, of providing lawful, verifiable alternative evidence of the applicant's reasonable ability to pay the portion of the rent to be paid by the tenant. That obligation is triggered specifically in instances where there is a government rent subsidy.

What counts as alternative evidence

The bill text names three examples of lawful, verifiable alternative evidence:

• Government benefit payments
• Pay records
• Bank statements

The statute frames this as a non exhaustive list rather than a closed one, so other verifiable documentation of ability to pay could reasonably qualify, but those three are the ones the Legislature wrote into the operative text.

What you have to do once the applicant submits it

Offering the option is step one. SB 267 also imposes two follow on duties once an applicant elects to provide alternative evidence:

First, give the applicant reasonable time to respond with that alternative evidence. You cannot offer the option and then close the file the same day if the applicant has not yet had a fair chance to gather pay stubs or bank statements.

Second, reasonably consider that alternative evidence in place of the person's credit history in determining whether to offer the rental accommodation to the applicant. This is the part that carries real compliance weight. A denial letter that references only the credit score, with no indication the alternative evidence was weighed, is exactly the fact pattern the statute is written to prevent.

What this does not do

SB 267 does not ban credit checks. You can still pull a credit report on a voucher applicant. What changes is what you are allowed to do with it in isolation.

SB 267 does not require you to approve every applicant who submits alternative evidence. It requires you to consider that evidence reasonably alongside, or instead of, the credit history. An applicant can still be denied for a legitimate, non discriminatory reason, such as insufficient verified income even after alternative evidence is weighed, or a documented history of nonpayment.

SB 267 does not apply outside the government rent subsidy context. The specific credit history rule in subdivision (o)(1)(B) is triggered by the presence of a government rent subsidy. Ordinary market rate applicants without a subsidy are screened under your standard criteria, subject to the rest of California's fair housing and screening law.

A practical screening sequence that complies

| Step | Action |

|---|---|

| 1 | Applicant discloses a government rent subsidy, such as a Section 8 voucher, on the application |

| 2 | Before running or relying on a credit based denial, offer the applicant the option to submit alternative evidence: government benefit payments, pay records, or bank statements |

| 3 | If the applicant declines the option, you may proceed on your standard criteria, including credit history |

| 4 | If the applicant submits alternative evidence, give reasonable time to complete the submission |

| 5 | Reasonably consider that evidence, weighing it against or in place of credit history, before making the decision |

| 6 | Document the actual reasoning for approval or denial, tied to the evidence considered, not a bare credit score cutoff |

Why this matters more in the South Bay than it might look

Rents across El Segundo, Manhattan Beach, Hermosa Beach, and Redondo Beach run high relative to voucher payment standards, which means the tenant's own portion of rent after subsidy can be a small fraction of the contract rent, sometimes just a few hundred dollars a month. A blanket credit score policy built around full market rent, applied without the SB 267 alternative evidence offer, is precisely the scenario the statute targets, and it is an easy scenario to fall into unintentionally if your screening vendor applies one standard criteria set to every applicant regardless of subsidy status.

FAQ

Does SB 267 mean I have to rent to anyone with bad credit who has a voucher?

No. It means you cannot use credit history alone to deny them without first offering the alternative evidence option and reasonably considering what they submit. You can still deny for legitimate reasons after that process.

What documents am I required to accept as alternative evidence?

The statute names government benefit payments, pay records, and bank statements as examples of lawful, verifiable alternative evidence of the applicant's ability to pay the tenant's portion of rent.

Does this apply if the applicant has no government subsidy at all?

No. The credit history rule in Government Code section 12955, subdivision (o)(1)(B), is specifically triggered by the presence of a government rent subsidy.

Can I still run a credit check on a voucher applicant?

Yes. The statute does not prohibit pulling credit history. It prohibits using that history alone to deny the applicant without the alternative evidence offer.

What should my denial documentation show?

That you offered the alternative evidence option, gave reasonable time to respond, and actually weighed whatever was submitted, not just a credit score threshold the applicant failed to clear.

How does SB 267 relate to SB 329?

Both amend Government Code section 12955. SB 329 made voucher status itself a protected source of income, so you cannot refuse a voucher holder outright. SB 267 layered on the narrower rule about how credit history specifically can and cannot be used once that applicant is in your screening process.

Before you act

This article summarizes the operative text of SB 267 as it amended Government Code section 12955 and is general information, not legal advice. Get your screening criteria and denial documentation practices reviewed by a California fair housing attorney before relying on them.

Topics: compliance, SB 267, Section 8, credit history, fair housing, South Bay, tenant screening

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