Section 8 Landlord Guide, Maryland 2025

Unlike most of the country, Maryland treats a tenant's source of income as a protected class. Since the HOME Act (HB 231/SB 530) took effect on October 1, 2020, refusing to rent to someone simply because they hold a Housing Choice (Section 8) voucher is generally unlawful across the state. That is a sharp break from the federal Fair Housing Act, which does not list source of income and lets landlords in non-protecting states decline vouchers freely.

For Maryland landlords, the practical question is no longer whether to accept vouchers but how to work with the program correctly: the inspection, the payment standard, the contract with the housing agency, and the screening rules the courts have tightened. This guide covers the law, the mechanics, and the real trade-offs.

Can a Landlord Refuse Section 8 in Maryland?

No. Maryland prohibits source-of-income discrimination under Md. Code Ann., State Gov't § 20-705(c) (HB 69, 2020) (effective 2020). 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 Maryland civil rights agency, HUD, or in court. Remedies can include actual damages, civil penalties, and attorney's fees.

Maryland bans source-of-income discrimination (the HOME Act)

The HOME Act amended Maryland State Government Article, Title 20, Subtitle 7 (the state Fair Housing law). It added source of income to the protected classes in SG § 20-705, with the definition in SG § 20-701. That definition is broad: any lawful money paid directly or indirectly to or on behalf of a renter, expressly including federal, state, and local housing assistance such as Housing Choice (Section 8) vouchers issued under the U.S. Housing Act of 1937.

In plain terms, you cannot post a "no vouchers" or "no Section 8" policy, quote a higher rent to voucher holders, or refuse to complete the paperwork the program requires. Because voucher participation forces a landlord to take extra steps (an inspection, a contract with the agency), refusing to take those steps is itself treated as discrimination under Maryland guidance.

Enforcement runs through the Maryland Commission on Civil Rights (MCCR), which issued detailed Source of Income Discrimination Guidance in August 2025. A tenant generally has one year from the discriminatory act to file. Proven violations can carry actual damages, injunctive relief, and civil penalties.

The exemptions: who is not covered

Maryland's source-of-income rule is not absolute. Under SG § 20-704, the protection does not apply to two owner-occupied situations: (i) renting rooms inside a dwelling you keep as your principal residence, and (ii) renting an apartment in a building with no more than five rental units where you also live as your principal residence.

If you are a professional landlord, an out-of-state owner, or you hold rental property you do not live in, assume you are covered. The exemption is narrow and tied to owner-occupancy. Do not confuse it with the federal "Mrs. Murphy" exemption, which is about other protected classes and does not expand your right to reject vouchers in Maryland.

Minimum-income screening: what Hare v. David S. Brown changed

The most important recent development for landlords is Hare v. David S. Brown Enterprises, Ltd., decided by the Supreme Court of Maryland on July 28, 2025. The applicant sought a unit renting for $1,590 a month; her voucher would have covered $1,464, leaving her personally responsible for only $126. The landlord applied a policy requiring income of 2.5 times the full contract rent and rejected her.

The Court held that a facially neutral minimum-income rule can still violate the HOME Act if it produces a disparate impact on voucher holders, evidence showed the 2.5x-rent rule excluded roughly 80% of voucher users. Critically, the Court said that counting voucher income the same way as other income does not automatically defeat the claim.

The takeaway: screen the tenant on the portion of rent they actually pay, not the full contract rent. Applying a blanket income multiple to the whole rent, when a subsidy covers most of it, is now legally risky in Maryland.

How the voucher process works: HQS inspection and payment standard

Section 8 in Maryland is administered by local public housing agencies (PHAs), the Housing Authority of Baltimore City (HABC), the Housing Opportunities Commission (HOC) in Montgomery County, Prince George's County, and DHCD's statewide programs, not by the state directly. Two mechanics drive everything:

The HQS inspection. Before the agency pays anything, your unit must pass a Housing Quality Standards (HQS) inspection covering safety, sanitation, and habitability. HUD is transitioning HQS to the newer NSPIRE standard, but the concept is the same. If the unit fails, the PHA will not sign the contract, and on an already-occupied unit, it can suspend payments until repairs pass reinspection.

The payment standard. The PHA sets a payment standard between 90% and 110% of the HUD Fair Market Rent (or Small Area FMR by ZIP) for the bedroom size. The tenant generally pays about 30% of adjusted monthly income, and the Housing Assistance Payment (HAP) covers the rest up to that standard. Your asking rent must also pass a rent-reasonableness check against comparable unassisted units. The HAP contract you sign with the PHA governs the subsidy payments.

The practical pros and cons for Maryland landlords

Pros. The subsidy portion arrives on a reliable schedule directly from a government agency, insulating most of your rent from tenant job loss. Demand is strong, vacancy is often short. And because acceptance is legally required for covered landlords, you are complying rather than choosing.

Cons. The upfront HQS/NSPIRE inspection and periodic reinspections can require repairs on your timeline, not the tenant's. PHA onboarding and the HAP contract add paperwork, and payment setup can lag the move-in. You cannot simply screen on the full rent, and you cannot exit the program mid-lease for a covered unit without following fair-housing and landlord-tenant rules.

The bottom line: in Maryland, treat voucher tenants exactly as you would any qualified applicant, screen on the tenant's out-of-pocket share, keep the unit inspection-ready, and document every application decision. The compliance cost is real but manageable, and the reward is a stable, government-backed rent stream.

Pros and Cons of Accepting Section 8 in Maryland

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 Maryland are based on local HUD Fair Market Rents, at a statewide median rent of $1,615/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 Maryland Public Housing Authority

Maryland 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, Maryland →

This guide reflects Maryland law as of 2026, including the HOME Act codified at State Government Article, Title 20, Subtitle 7 (§§ 20-701, 20-704, 20-705), the Maryland Commission on Civil Rights Source of Income Discrimination Guidance (August 2025), and the Supreme Court of Maryland's decision in Hare v. David S. Brown Enterprises, Ltd. (July 28, 2025). Voucher administration details reflect federal HUD program rules as applied by Maryland public housing agencies. It is general information for landlords, not legal advice; consult a Maryland attorney or the MCCR for a specific situation, and confirm current payment standards with your local PHA.

Frequently Asked Questions

Can a Maryland landlord refuse to accept a Section 8 voucher?

Generally no. Since the HOME Act took effect on October 1, 2020, source of income, including Housing Choice (Section 8) vouchers, is a protected class under State Government Article, Subtitle 7. Refusing a voucher, advertising 'no Section 8,' or declining to complete program paperwork is treated as unlawful discrimination for covered landlords.

Are any Maryland landlords exempt from the voucher rule?

Yes, but narrowly. Under SG § 20-704, the source-of-income protection does not apply if you rent rooms in a dwelling you keep as your principal residence, or rent an apartment in a building with no more than five units where you also live. Professional and non-owner-occupied rentals are covered.

Can I still require a minimum income from a voucher applicant?

Only carefully. In Hare v. David S. Brown Enterprises (July 28, 2025), the Supreme Court of Maryland held that a minimum-income rule set at 2.5 times the full contract rent can violate the HOME Act because it excluded roughly 80% of voucher holders. Screen the applicant on the portion of rent they actually pay, not the full rent.

How is the rent subsidy calculated in Maryland?

The local housing agency sets a payment standard between 90% and 110% of HUD's Fair Market Rent (or Small Area FMR) for the bedroom size. The tenant generally pays about 30% of adjusted monthly income, and the Housing Assistance Payment covers the rest up to the payment standard, provided your rent passes a reasonableness check.

What is the HQS inspection and what happens if my unit fails?

Before the agency pays, your unit must pass a Housing Quality Standards (HQS) inspection for safety and habitability (HUD is moving to the NSPIRE standard). If it fails, the agency will not sign the HAP contract for a new unit, and for an occupied unit, it can suspend payments until repairs pass reinspection.

Where do voucher tenants file a complaint if I violate the law?

With the Maryland Commission on Civil Rights (MCCR), which enforces the HOME Act and published detailed source-of-income guidance in August 2025. Complaints are generally filed within one year of the discriminatory act, and remedies can include actual damages, injunctive relief, and civil penalties.

Related Maryland Landlord Guides

SOI protection status sourced from published Maryland 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.