Housing Choice Voucher participation rules, source-of-income law, and HUD inspection requirements
Hawaii is one of a minority of states that has written source-of-income protection into law. Since May 1, 2023, Act 310 (codified at Haw. Rev. Stat. Chapter 368F) has made it unlawful for larger landlords to refuse a tenant simply because the rent will be paid, in part, by a Section 8 Housing Choice Voucher. If you own rentals in Honolulu, Maui, Kauai, or Hawaii County, the practical question is no longer whether you can post "No Section 8" ads — for most owners of any scale, you cannot. This guide covers who is covered, how the voucher program actually works on the landlord side, and the real trade-offs before you sign a HAP contract.
Yes, in most cases. Hawaii has no statewide source-of-income (SOI) protection law. Landlords may decline applicants who hold Housing Choice Vouchers without violating state law. However, federal Fair Housing Act protections still apply: landlords cannot use a Section 8 refusal as a pretext for race, national origin, or familial status discrimination patterns of disproportionate voucher refusals in certain demographics may be actionable under HUD's disparate impact standard.
Yes, for landlords of a certain size. Under Act 310, now Haw. Rev. Stat. § 368F-2, it is a discriminatory practice to refuse to rent, to advertise a unit as unavailable, or to impose different terms because an applicant or tenant participates in a housing voucher program. The law explicitly reaches both the Section 8 Housing Choice Voucher program and Permanent Supportive Housing programs. That means "No Section 8" language in a listing is itself a violation, separate from any refusal to rent.
The key limit: the ban applies to landlords who own more than four rental properties. If you own four or fewer, you fall outside Chapter 368F and are not required to accept vouchers under this statute. Note that this is a distinct protection from Hawaii's general fair housing law, Haw. Rev. Stat. Chapter 515, which bars discrimination on race, sex (including gender identity or expression), sexual orientation, color, religion, marital status, familial status, ancestry, disability, age, and HIV status — and which applies far more broadly.
This is a place where state law does the heavy lifting. The federal Fair Housing Act does not list source of income as a protected class, and there is no federal rule requiring a private landlord to accept a voucher. Absent a state or local law, a landlord elsewhere can lawfully decline vouchers. Hawaii's Act 310 is what creates the obligation here — so a Hawaii owner over the four-property threshold has duties that an owner in a non-protective state does not.
Everything else about the voucher program is federal. The Housing Choice Voucher program is run through public housing agencies (PHAs): statewide by the Hawaii Public Housing Authority and by county programs such as the City and County of Honolulu's Section 8 office. Those PHAs set inspections, payment standards, and the Housing Assistance Payment contract under HUD rules, regardless of the state discrimination law.
A unit cannot go under a voucher until it passes a PHA inspection. Historically this used HUD's Housing Quality Standards (HQS); HUD is transitioning nationally to NSPIRE (National Standards for the Physical Inspection of Real Estate), which consolidates the physical-condition standards across HUD programs. Either way, an inspector checks life-safety and habitability basics — working smoke detectors, safe electrical and heating, no peeling paint in pre-1978 units, functioning plumbing, secure windows and locks.
Plan for this to gate your timeline. The unit must pass before the PHA will execute the HAP contract and release payment, and units are re-inspected periodically during the tenancy. Failed items must be repaired and re-inspected. For a well-maintained Hawaii rental this is routine; for a marginal unit it can add weeks. Build the inspection into your turnover schedule rather than assuming a same-week move-in.
Two separate numbers govern what you can collect. First, each PHA sets a payment standard, generally between 90% and 110% of the HUD Fair Market Rent (FMR) for the area (PHAs can seek Small Area FMRs or exception payment standards in high-cost markets like urban Honolulu). The payment standard caps the subsidy, not your rent. Second, before approving your rent the PHA runs a rent reasonableness test, comparing your asking rent to comparable unassisted units; an above-market rent will be knocked down.
Once approved, you receive the Housing Assistance Payment (HAP) directly from the PHA each month, and the tenant pays the balance — the household's share generally targets around 30% of adjusted income. The upside for landlords is a reliable, government-backed portion of the rent that does not bounce. The friction is that your headline rent must survive both the payment standard and the reasonableness review, so voucher units in Hawaii's expensive markets sometimes clear at less than an all-cash tenant would pay.
Pros: a large share of rent arrives on time from the PHA; voucher tenants often stay longer, reducing turnover in a tight rental market; and in Hawaii, accepting vouchers keeps larger owners compliant with Act 310 by default. Cons: the pre-lease inspection and periodic re-inspections add steps; rent is capped by the payment standard and reasonableness review; and there is administrative paperwork with the PHA.
The compliance stakes are real for covered owners. The Hawaii Civil Rights Commission enforces Chapter 368F, and violations carry a fine of up to $2,000 for a first violation and $2,500 for each subsequent violation — on top of any damages. The safest posture for any landlord over the four-property threshold is to screen voucher applicants on the same criteria (income, references, history) you apply to everyone else, and to scrub "No Section 8" language from every listing.
Advantages:
Potential drawbacks:
Hawaii 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:
This page summarizes Hawaii's source-of-income protections under Act 310 (Haw. Rev. Stat. Chapter 368F, effective May 1, 2023), the general fair housing provisions of Haw. Rev. Stat. Chapter 515, and federal Housing Choice Voucher rules administered by public housing agencies. It is general information for landlords, not legal advice. Statutes, payment standards, and Fair Market Rents change; confirm current figures with the Hawaii Public Housing Authority or your county Section 8 office, and consult the Hawaii Civil Rights Commission or a Hawaii attorney before acting on a specific situation.
Larger ones do. Under Act 310 (Haw. Rev. Stat. Chapter 368F), landlords who own more than four rental properties may not refuse a tenant because they use a Section 8 Housing Choice Voucher or a Permanent Supportive Housing subsidy. Owners of four or fewer properties are not covered by this statute.
May 1, 2023. Act 310 amended Hawaii Revised Statutes to add Chapter 368F, making it a discriminatory practice to reject applicants, advertise unavailability, or impose different terms based on participation in a housing voucher program.
Not if you own more than four rental properties. Advertising a unit as not accepting vouchers is itself a violation of HRS 368F-2, separate from actually refusing to rent. Covered landlords should remove that language from all listings.
The Hawaii Civil Rights Commission enforces the law. A covered landlord faces a fine of up to $2,000 for a first violation and $2,500 for each subsequent violation, in addition to any damages awarded to the tenant.
Two ways. The PHA sets a payment standard, generally 90% to 110% of the area HUD Fair Market Rent, which caps the subsidy; and the PHA runs a rent reasonableness review comparing your rent to similar unassisted units. Your approved rent must satisfy both.
The public housing agency inspects the unit under HUD's HQS standard (transitioning to NSPIRE) before any subsidy is paid, and re-inspects periodically. Once approved, the PHA pays you the Housing Assistance Payment directly each month and the tenant pays the remaining share, which generally targets about 30% of adjusted income.
SOI protection status sourced from published Hawaii fair-housing statutes and HUD Housing Choice Voucher Program regulations (24 C.F.R. Part 982). Last updated July 14, 2026. This page is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for your specific situation.
