"New Jersey law makes it illegal to refuse to rent to anyone solely because they will pay their rent with rental assistance or welfare. For example, it is illegal for a landlord to refuse to rent to a person because the person receives Section 8 assistance, (N.J.S.A. 2A:42-100). This applies to a tenant who obtains Section 8 while already a tenant, and to those who are seeking to rent from a landlord for the first time, (Franklin Tower-One, L.L.C. v. N.M., 157 N.J. 602-1999).”
NJ law also requires that all forms of income be taken into account when considering a tenant application - this includes the value of the voucher. Also, the program has already verified the applicant's ability to pay their share of the rent.
If someone asks if you accept vouchers, you must remind them that you are a real estate agent and you do not accept or decline vouchers. Your role is to help people find a home, for a fee. Be aware, vouchers will NOT pay broker fees. If the landlord will not pay the fee on a given property, you must make them aware that it will be the applicant's obligation to pay if they decide to work with you.
What should I do if an owner refuses to accept housing vouchers/subsidies?
You should not work with owners who discriminate based on a current or prospective tenant’s source of income. Source of income discrimination must be treated just like any other kind of discrimination.
What if the owner says they accept vouchers but requires that the applicants...
Make a certain income (e.g. $68,000 or 50x the rent):
• Voucher programs calculate the tenants’ rent to ensure that tenants are able to pay their required portion. Requiring a specific income is therefore unnecessary and a discriminatory practice.
Have a guarantor:
• You may not require a guarantor when the program calculates the tenants’ rental portion based on the tenants’ income. These programs already calculate the tenants’ portion to ensure affordability.
Have a high credit score (e.g. over 600, 650, or 700):
Section 8 and Voucher Tenants
If the voucher/subsidy covers 100% of the rent, you are prohibited from considering credit.
If the tenant pays a portion of the rent, you may consider credit. Because voucher holders often have low or no credit, requiring a specific credit score may trigger an investigation by the Commission. Each application should be considered on a case-by-case basis. Prior to rejecting an applicant based on credit, the applicant should be provided an opportunity to demonstrate ability to timely pay their portion of the rent. To protect yourself when making a decision based on a credit report, provide the applicant a written explanation of your analysis.