Section 8 in California: What SB 329 and SB 267 Require When You Screen a Voucher Holder

Published August 10, 2026

SB 329 made housing vouchers a protected source of income under Government Code section 12955, so refusing to rent to a Section 8 tenant is illegal statewide. SB 267 layered on a separate credit history rule. Here is what each law actually requires during screening.

The short answer

Two separate California laws govern how you screen a Section 8 applicant. SB 329, effective January 1, 2020, amended Government Code section 12955 to make housing vouchers a protected source of income, so refusing to rent based on voucher status is illegal statewide. SB 267, effective 2024, added a further rule under the same code section that you cannot use credit history to reject a voucher holder without first offering them a chance to submit alternative proof of ability to pay.

Last verified: August 10, 2026

SB 329: vouchers are a protected source of income

Before SB 329, California's Fair Employment and Housing Act already banned discrimination based on "source of income," but the definition was ambiguous enough that some landlords argued a voucher was not income at all, since it did not go to the tenant directly.

SB 329 closed that gap. It amended Government Code section 12955 to define source of income as verifiable income paid directly to a tenant, to a representative of a tenant, or paid to a housing owner or landlord on behalf of a tenant, including federal, state, or local public assistance and federal, state, or local housing subsidies, explicitly naming federal housing assistance vouchers issued under Section 8 of the United States Housing Act of 1937.

The practical effect: a South Bay landlord cannot post a listing that says no Section 8, cannot tell a caller the property does not accept vouchers, and cannot reject an otherwise qualified applicant because their portion of the rent is paid through a housing authority. That has been the law statewide since January 1, 2020, regardless of what any individual city's local ordinance says.

SB 267: credit history gets a separate rule

SB 267 arrived several years later and solves a narrower, more specific problem. Landlords were complying with SB 329 on paper, accepting voucher applicants into the pipeline, and then screening them out anyway with a standard credit score cutoff that many voucher holders could not clear, even when their actual rent obligation, the portion not covered by the subsidy, was small and well within their means.

SB 267 amended the same code section, Government Code 12955, adding subdivision (o)(1)(B). It prohibits using a person's credit history as part of the application process for a rental accommodation, in instances where there is a government rent subsidy, without offering the applicant the option to instead provide lawful, verifiable alternative evidence of their reasonable ability to pay the tenant portion of the rent. That alternative evidence can include, per the bill text, government benefit payments, pay records, and bank statements.

If the applicant chooses to submit alternative evidence, the statute requires the housing provider to give the applicant reasonable time to respond with it, and to reasonably consider that alternative evidence in place of the credit history when deciding whether to offer the unit.

SB 267 was approved by the Governor on October 11, 2023.

The two laws together, in practice

| Requirement | Source | What it means for screening |

|---|---|---|

| Cannot refuse to consider a voucher applicant because of the voucher | SB 329, Gov. Code section 12955 | No blanket no Section 8 policy, in listings or in practice |

| Cannot deny based on standard financial or income standards not tied to the tenant portion of rent | Existing FEHA text amended by SB 267 | Income and financial screening criteria must be scaled to what the tenant actually pays, not the full contract rent |

| Cannot use credit history alone to reject a voucher applicant | SB 267, Gov. Code section 12955(o)(1)(B) | Must offer the applicant a chance to submit alternative evidence of ability to pay before a credit based denial |

| Must reasonably consider that alternative evidence | SB 267 | A pay stub, bank statement, or benefit award letter has to actually factor into the decision, not just get filed |

What a compliant screening process looks like

Structure your process so it survives a fair housing complaint. A few concrete steps:

Screen the tenant portion of rent, not the full contract rent. If the housing authority is paying most of the rent under the Housing Assistance Payment contract, your income and debt to income calculations should be built around what the tenant actually owes, not the gross rent figure.

Build the alternative evidence offer into your application, not into a verbal aside after a denial. If your credit criteria would otherwise disqualify a voucher applicant, the statute requires you to have offered the alternative evidence option before that denial, not as a reaction to a complaint afterward.

Keep a record of what alternative evidence was offered and considered. If you deny an applicant after they submit alternative evidence, document the reasoning tied to the actual evidence, not a generic credit score cutoff.

Do not let a property level "no vouchers" screening filter survive anywhere in your process, including in a listing description, a pre-screening phone script, or an internal criteria sheet. SB 329 makes that a straightforward violation.

Where this leaves South Bay landlords

None of the South Bay cities, El Segundo, Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, Hawthorne, Inglewood, Gardena, or Carson, get to opt out of Government Code section 12955. It is state law, and it applies regardless of a local jurisdiction's own rental ordinance. A landlord operating anywhere in this footprint is bound by both SB 329 and SB 267 as amended into the same statute.

FAQ

Can I refuse to rent to a Section 8 voucher holder in California?

No. Government Code section 12955, as amended by SB 329 effective January 1, 2020, makes source of income, including housing vouchers, a protected characteristic statewide. Refusing an applicant because they hold a voucher is source of income discrimination.

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

Yes, you can run the check, but under SB 267 you cannot use it alone to deny the applicant when a government rent subsidy is involved. You must first offer the applicant the option to submit alternative evidence of their ability to pay.

What counts as alternative evidence under SB 267?

The statute lists government benefit payments, pay records, and bank statements as examples of lawful, verifiable alternative evidence, though it is not necessarily an exhaustive list.

Do I screen against the full rent or just the tenant's portion?

Screen against the portion the tenant actually pays. Applying a financial or income standard based on the full contract rent, when a government subsidy is covering most of it, undercuts the purpose of both statutes.

Does this apply to Section 8 only, or other subsidies too?

Government Code section 12955's definition of source of income covers federal, state, and local public assistance and housing subsidies broadly, not just the Housing Choice Voucher program, though Section 8 vouchers are specifically named in the statute.

Is this a state law or does it vary by city?

It is state law. Government Code section 12955 applies statewide regardless of what a specific city's rental ordinance says.

Before you act

This article summarizes Government Code section 12955 as amended by SB 329 and SB 267 and is general information, not legal advice. Fair housing exposure carries real liability. Confirm your screening criteria and application process with a California fair housing attorney before finalizing them.

Topics: compliance, Section 8, SB 329, SB 267, fair housing, South Bay, tenant screening

Get a free management quote

Back to the Schofield Properties blog

Schofield Properties is a family run property management company at 323 Richmond St, El Segundo, CA 90245. We have managed the South Bay since 1972 and personally oversee about 186 doors today. Book a call to talk about your property.