Lately I’ve been deep in the trenches of tenant screening and scheduling viewings. You meet all kinds of people, and I’ll probably write a full breakdown of my screening process soon. Specifically, how I think about mitigating risk as a landlord.
For now, I want to keep this issue shorter and focus on one topic that surprised me: Section 8 housing.
What I Thought vs. What I Learned
Section 8 is a federal program that helps renters by subsidizing part of their monthly payment. The tenant pays a portion, and the government covers the rest.
In short: it’s assisted housing.
In Michigan, a law passed in April 2025 made it illegal to discriminate against tenants based on their source of income. My initial impression was that every landlord had to accept Section 8 vouchers.
But I recently discovered there are exceptions:
If you own 4 or fewer units, you’re exempt.
If you’re “house hacking” (living in one unit of a building you’re also renting out), you’re exempt.
If the majority of your income doesn’t come from landlording, you’re exempt.
In other words, mom-and-pop landlords often don’t have to take Section 8 vouchers if they don’t want to.
So once you know it’s optional, the question becomes: is it worth it?
Pros & Cons of Section 8
Pros:
Guaranteed income. The government’s portion shows up on time, every time. If the voucher covers most of the rent, your cash flow is nearly automatic.
Market-rate rents. Housing authorities set payments based on what’s considered “fair market rent” for your property type.
Larger tenant pool. More qualified applicants mean less vacancy risk.
Long-term tenants. Because voucher eligibility is reassessed when tenants move, many Section 8 renters prefer to stay put once they find a place.
Cons:
More admin. Properties must pass an annual inspection, and dealing with the housing authority adds extra paperwork. Payments also come from two sources (tenant + government), which means more tracking.
Tenant risk perception. I haven’t rented to Section 8 tenants personally, but if you browse landlord forums, you’ll see plenty of complaints about:
missed tenant portions of rent
property damage at move-out
general behavioral headaches
Whether those stories reflect reality or stereotypes probably depends on the tenant and your screening process.
The Takeaway
If you’re a landlord in Michigan, you may not be required to accept Section 8. Deciding whether you should accept it comes down to weighing the trade-offs.
For some, guaranteed payments and a wider applicant pool are worth the extra steps. For others, the inspections, paperwork, and tenant concerns make it a hard pass.
Either way, understanding the rules is the first step—so you can make the call that fits your goals as a landlord.
