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I’ve seen people sue over that based on discrimination. Not sure if there’s an actual claim to be had, but they’ve done it.
I believe it depends on your state
Rules vary by city/county/state so check for yourself. A few years ago I had a potential tenant who was awesome that had section 8 vouchers but they didn’t cover the whole rent so it wasn’t an eligible unit. They offered to cover the balance in cash but they aren’t supposed to do that and I didn’t want to risk it. Also there are additional inspections some cities do for section 8 housing so watch out for that.
You could either 1) not reply
Or
2) disqualify them based on other factors (lack of rental history, credit score, employment, background check)
Not replying to section 8 applicants could land you in trouble in certain states/cities.
We also don’t do section 8. For NYC specifically you have to accept if you have over 8 units. We had only 3 units and so it was fine to reply and say “we do not accept section 8”. When the person responded saying they’d report us we simply attached the rules from the city and that was the last we heard from them.
Also as an FYI you don’t need to tell people why you didn’t accept them.