Section 8 Landlord Guide, Delaware 2025

Delaware crossed a line on January 1, 2026 that changes how you screen applicants. Under SB 293, which amended the Delaware Fair Housing Act (6 Del. C. Chapter 46), source of income is now a protected class and Delaware became the 23rd state to protect voucher holders statewide. You are no longer free to post "no Section 8" or reject a file the moment you see a Housing Choice Voucher. The federal program hasn't changed, but Delaware just removed the option most landlords relied on to avoid it. This guide covers what the law actually requires, how the Delaware State Housing Authority (DSHA) inspection and rent process works, and where the real trade-offs sit.

Can a Landlord Refuse Section 8 in Delaware?

No. Delaware prohibits source-of-income discrimination under 6 Del. C. § 4503(a)(9) (2017) (effective 2017). A landlord who refuses to rent to an otherwise-qualified applicant solely because the applicant holds a Housing Choice Voucher may face a civil rights complaint filed with the Delaware civil rights agency, HUD, or in court. Remedies can include actual damages, civil penalties, and attorney's fees.

What Delaware's source-of-income law actually requires

The federal Housing Choice Voucher program (Section 8, 42 U.S.C. 1437f) has never forced participation on its own. What changed in Delaware is the state fair-housing side. SB 293, signed August 9, 2024 and effective January 1, 2026, added source of income to the protected classes under 6 Del. C. Chapter 46, strengthening the more limited protections Delaware first enacted in 2016.

The distinction that matters: the law requires you to consider a voucher applicant on the same terms as anyone else, and it prohibits refusing them because the rent will be paid with a voucher or other government assistance. It does not force you to accept a specific applicant. If you decline someone, the reason has to be unrelated to the voucher, such as credit, prior evictions, references, income-to-rent ratio applied to their portion, or rental history. "No vouchers" as a blanket policy, advertising, or an oral brush-off is what the statute targets. Note also that these source-of-income provisions are currently set to sunset in 2028 unless the General Assembly renews them.

The narrow exemptions landlords still have

The law leaves a few things intact. You are not required to participate in any government-sponsored rental assistance program, and your non-participation by itself may not be made the basis of an administrative or judicial proceeding. In practice the protection attaches to how you treat an applicant for a unit you have offered on the market, not to a demand that you enroll as a Section 8 landlord in the abstract.

If you already participate in a program, you may reserve units for tenants who qualify for that program. And ordinary business screening survives: you can apply the same minimum credit, income (measured against the tenant's share, not the full rent), criminal-history-consistent-with-fair-housing, and rental-history standards you use for every applicant, as long as you apply them evenly. The safe posture is a written, uniformly applied screening policy so a denial can be documented on legitimate grounds.

Who administers Section 8, and how the process works

Delaware's voucher program is not run from one office. The Delaware State Housing Authority (DSHA) administers the Housing Choice Voucher program for Kent and Sussex Counties. New Castle County and the City of Wilmington are served by their own housing authorities, so a landlord there works with those PHAs instead. Confirm which authority holds the voucher before you start.

The mechanics are standard. A voucher holder finds your unit; you complete a Request for Tenancy Approval (RFTA); the PHA schedules a Housing Quality Standards (HQS) inspection; on approval you sign the lease and the Housing Assistance Payment (HAP) contract. The PHA's share of the rent is paid to you monthly by direct deposit, and the tenant pays the balance. The initial lease term is one year, then it continues month-to-month. (HUD is transitioning inspections nationally from HQS to the newer NSPIRE standard, but the DSHA-conducted inspection still gates the tenancy either way.)

Inspections, payment standards, and rent increases

Inspections: DSHA conducts its recurring inspection normally 120 days before the original lease anniversary date. If the unit fails or shows deficiencies, you get 30 days to complete repairs before re-inspection, with written extensions available for weather or contractor delays. Assistance payments can be held for units that stay out of compliance, so treat the repair window as a hard deadline.

Rent and payment standards: DSHA sets allowable contract rent using HUD's Fair Market Rents (FMR) for Kent and Sussex Counties, published annually. Your contract rent plus the applicable utility allowance cannot exceed the Payment Standard for the unit's bedroom size. Under federal rules a PHA sets that payment standard somewhere between 90% and 110% of the FMR. Rent must also be "reasonable" compared with unassisted comparable units.

Increases: To raise rent, submit a written request to DSHA at least 60 days before lease renewal; DSHA reviews it for reasonableness and HUD compliance before approving.

The real pros and cons for Delaware landlords

Pros: the PHA share arrives on time by direct deposit and is insulated from a tenant's job loss, which is a genuine cash-flow advantage. Demand from voucher holders is deep, so vacancy time can be short. The annual inspection, while a burden, also documents your unit's condition on a schedule.

Cons: the up-front RFTA-plus-inspection cycle delays move-in versus a market tenant who can sign today, and a failed inspection restarts the clock. Your rent ceiling is bound by the Payment Standard and FMR rather than what the open market might bear, and increases run through a 60-day approval instead of simple notice. The practical takeaway after January 1, 2026: because you can no longer decline applicants for holding a voucher, the smarter play is to build voucher tenancies into your process cleanly, keep a uniform written screening standard, and know your correct PHA, rather than trying to avoid the program.

Pros and Cons of Accepting Section 8 in Delaware

Advantages:

• Guaranteed government payment for the voucher portion, PHA funds are essentially credit-risk-free
• Large renter pool: over 5 million US households hold vouchers; demand typically exceeds supply of willing landlords
• PHA payment standards in Delaware are based on local HUD Fair Market Rents, at a statewide median rent of $1,404/mo, subsidy can be substantial
• Tenants who lose their voucher by breaking lease rules lose their housing assistance, strong incentive to comply

Potential drawbacks:

• Inspection lead time: 2-6 weeks from RFTA submission to first HAP payment is typical, plan for vacancy during the process
• Rent must be approved as "reasonable", PHA may not approve above-market rents
• Annual inspections and potential HAP payment holds if issues arise
• Additional paperwork and PHA coordination vs. a conventional lease

Find the Delaware Public Housing Authority

Delaware has one or more Public Housing Agencies (PHAs) that administer Housing Choice Vouchers. Contact your local PHA to register as an HCV landlord, verify current payment standards, and submit a Request for Tenancy Approval (RFTA). The HUD PHA directory lets you search by state and county:

HUD PHA Directory, Delaware →

This guide reflects Delaware law as of June 2026, drawn from the Delaware Fair Housing Act (6 Del. C. Chapter 46) as amended by SB 293, guidance from the Delaware State Housing Authority for Housing Choice Voucher landlords, and the Delaware Division of Human and Civil Rights, which investigates source-of-income complaints. Federal voucher rules come from HUD (42 U.S.C. 1437f). Program details, Fair Market Rents, and payment standards change annually, and voucher administration differs between DSHA and the New Castle County and Wilmington housing authorities. Confirm current figures with the authority holding the voucher, and consult a Delaware landlord-tenant attorney before denying any applicant, since a denial tied to source of income can trigger a fair-housing complaint.

Frequently Asked Questions

Can Delaware landlords still say "no Section 8"?

No. Since January 1, 2026, SB 293 made source of income a protected class under the Delaware Fair Housing Act (6 Del. C. Chapter 46). Advertising "no vouchers" or rejecting an applicant solely because they use a Housing Choice Voucher or other government rental assistance is prohibited discrimination.

Does the law force me to rent to a voucher holder?

No. You must consider voucher applicants on the same terms as everyone else, but you can still decline for reasons unrelated to the voucher, such as credit, prior evictions, references, or rental history, as long as you apply the same standards to every applicant.

Who runs the Section 8 program in Delaware?

The Delaware State Housing Authority (DSHA) administers Housing Choice Vouchers for Kent and Sussex Counties. New Castle County and the City of Wilmington have their own housing authorities. Confirm which authority issued the voucher before starting the RFTA.

How much can I charge in rent?

DSHA sets allowable rent from HUD Fair Market Rents for Kent and Sussex Counties. Your contract rent plus the applicable utility allowance cannot exceed the Payment Standard for the unit's bedroom size, and federal rules set that standard between 90% and 110% of the FMR. Rent must also be reasonable versus comparable unassisted units.

How does the inspection process work?

DSHA schedules an initial Housing Quality Standards inspection before move-in and a recurring inspection normally 120 days before the lease anniversary. If the unit has deficiencies, you get 30 days to complete repairs before re-inspection, with written extensions available for weather or contractor delays.

How do I raise the rent on a voucher tenant?

Submit a written rent-increase request to DSHA at least 60 days before lease renewal. DSHA reviews it for reasonableness and HUD compliance before approving. You cannot raise voucher rent on simple notice the way you might with a market tenant.

Do the source-of-income protections expire?

As currently enacted, Delaware's source-of-income provisions are set to sunset in 2028 unless the General Assembly renews them. Until then, the protection is in full effect and applies to voucher and government-assistance applicants statewide.

Related Delaware Landlord Guides

SOI protection status sourced from published Delaware fair-housing statutes and HUD Housing Choice Voucher Program regulations (24 C.F.R. Part 982). Last updated August 28, 2026. This page is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for your specific situation.