There are some important screening considerations for rental property owners in Dayton to manage, and today we’re focusing on one in particular: income.
In 2023, the City of Dayton took a significant step toward expanding housing equity by passing an ordinance that prohibits discrimination based on a tenant’s lawful source of income. This means that landlords can no longer reject prospective tenants solely because they intend to use housing assistance, such as Section 8 vouchers, or other forms of public support to pay rent.
The measure reflects a growing trend across the country to remove barriers for low-income renters and to create a more inclusive housing market.
What the Law Says about Income as a Protected Class
Under the 2023 ordinance, landlords in Dayton are prohibited from denying housing to applicants because they plan to use non-wage income sources to pay rent. These income sources include, but are not limited to:
- Housing Choice Vouchers (commonly known as Section 8)
- Social Security or Supplemental Security Income (SSI)
- Disability benefits
- Veterans’ benefits
- Child support or alimony
- Other lawful public assistance
The goal of the ordinance is to ensure that tenants who rely on public assistance or other nontraditional income streams have a fair chance to secure housing and to keep them on an even playing field with tenants who have wage-based incomes.
What This Means for Dayton Landlords
This ordinance doesn’t require landlords to lower their tenant screening standards. You can still perform background checks, verify rental history, and evaluate creditworthiness. However, you cannot automatically deny an applicant just because they plan to use a voucher or other benefit to pay part or all of their rent.
Importantly, landlords are not obligated to accept housing vouchers if their property does not meet the minimum standards required by federal programs. This means that if you are legitimately unable to pass an inspection required for the voucher program, you’re not penalized under the law. But landlords must ensure that any denial is based on property eligibility or tenant criteria, not the income source itself.
Common Concerns and How to Address Them
Historically, many voucher holders have struggled to find landlords willing to accept their subsidies. This has been especially true in high-demand neighborhoods, where landlords may prefer to lease to tenants without government assistance.
The result is a concentration of low-income renters in certain areas, perpetuating cycles of poverty and limiting access to quality housing, schools, and job opportunities.
The 2023 ordinance intended to correct this imbalance by determining that lawful income, no matter the source, should be treated equally when evaluating tenants. In doing so, Dayton joins the ranks of many cities and states that have taken similar action to ban source-of-income discrimination.
We have spoken to a number of landlords who have concerns about participating in programs like Section 8. Let’s talk about the common worries.
- Bureaucracy and Delays
Landlords often cite the administrative burden of working with housing authorities. It’s true that some paperwork and inspections are involved. However, in response to these concerns, local housing agencies have made strides to streamline the process. Initiatives like fast-track leasing, dedicated landlord support teams, and electronic document submission help reduce the red tape. Let’s not forget you also have the option of working with a Dayton property management team like ManCo. We can navigate all of this for you. - Property Inspections and Compliance
Housing authorities require properties to pass inspection before tenants can move in. While this can be an added step, many of the standards overlap with basic safety and habitability requirements. Staying in compliance not only enables you to participate in voucher programs but also helps protect your property and tenants in the long run. - Misconceptions About Tenants
There’s a persistent myth that tenants who use housing assistance are riskier. In reality, voucher holders must comply with strict rules to retain their benefits. Many are long-term tenants who prioritize housing stability. Moreover, landlords still have the right to screen applicants and enforce lease agreements just as they would with any other tenant.
Accepting tenants with housing assistance can be financially advantageous. Voucher programs provide a guaranteed portion of rent from the housing authority, which means more stable income for landlords. In many cases, the tenant pays a percentage of the rent based on their income, and the housing authority covers the remainder, and those payments are on time and reliable.
Legal Compliance and Best Practices
Landlords in Dayton should review their screening criteria, advertising language, and leasing practices to ensure compliance with this ordinance. For example, avoid using phrases like “No Section 8” or “No vouchers” in listings. Such statements could be considered discriminatory. Standardize your screening process to focus on objective criteria such as rental history, credit, and references, without factoring in how the rent will be paid.
Violations of the ordinance can lead to fines, complaints, and potential legal action. The Dayton Human Relations Council is tasked with enforcing the law and will investigate reports of discrimination.
Consider the bigger picture. While the new ordinance may seem like a big change for some property owners, it’s part of a broader effort to build a more inclusive community. Fair housing laws help ensure that everyone regardless of income source has a chance to live in a safe, decent home.
Housing stability is a foundational element of community health, educational success, and economic mobility. By opening your doors to all qualified tenants, regardless of how they pay, you play a vital role in improving Dayton’s housing landscape.
The 2023 ordinance protecting income as a class is more than a legal update. It’s a commitment to equity, fairness, and opportunity. While adjusting to new rules may take effort, the long-term benefits for both property owners and the broader community are substantial.
As the rental market evolves, embracing these changes positions landlords not only to comply with the law but to become leaders in creating a more inclusive and resilient housing market. By working with tenants from all walks of life and all income sources, Dayton landlords can help build a city where everyone has a fair chance at a place to call home.
Questions about this requirement? Please contact us at ManCo Property Services for more information.
And remember: If it’s a property managed by ManCo, life just got better!