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Your phone’s buzzing with showings for a freshly painted two-bedroom. Then a top applicant mentions they’ll pay with a Housing Choice Voucher. A decade ago, you might’ve slid that file to the bottom of the pile.
In Virginia today, that reflex can cost you, legally and financially. Since 2020, “source of funds” has been protected, which changes how you advertise, screen, and set timelines.
The upside? Done right, vouchers can mean reliable PHA-paid rent once approved, longer stays, and fewer turnovers. Here’s how to turn compliance into an advantage.
Key Takeaways
- It’s unlawful to deny housing because of a lawful source of funds (including vouchers, disability benefits, child support, etc.) under Virginia’s Fair Housing Law.
- Apply income multipliers only to the tenant’s portion of rent, not the full contract rent.
- A narrow small-landlord exemption may apply if an owner has no more than four Virginia rental units and has no more than a 10% interest in more than four units; advertising rules still apply (Virginia Code §36-96.2).
- If a voucher isn’t approved within 15 days after a complete Request for Tenancy Approval (RFTA) is submitted, the owner may move on, assuming good-faith cooperation.
- Federal rules require HQS inspections and a rent-reasonableness finding before approval; cooperating with paperwork and inspection is part of compliance.
What “Source of Funds” Means in Virginia
Virginia defines “source of funds” broadly as any lawful money used to pay rent, whether from a public or private program. This includes Housing Choice Vouchers (Section 8), SSDI/SSI, child support, alimony, veterans’ benefits, and nonprofit assistance (Virginia Code §36-96.1:1).
Practically, if the money is lawful. The applicant meets your neutral criteria; you cannot deny them based on the source of the rent (Virginia Code §36-96.3).
The Two Places Landlords Stumble Most
1) Income ratios. If your policy requires “3× the rent,” apply that multiplier only to the tenant’s share after subsidies. Example: rent is $1,500; voucher covers $1,200; tenant pays $300. The applicant must document $900/month, not $4,500. This aligns screening with Virginia’s prohibition on source-of-funds discrimination.
2) Timelines. Owners worry about the possibility of an indefinite vacancy during voucher processing. Virginia addresses this with a 15-day rule tied to RFTA submission. After that window, an owner may proceed to the next qualified applicant if approval hasn’t been issued and the owner acted in good faith.
The 15-Day Safeguard: How the Clock Works
Virginia gives landlords a safety valve: if a voucher isn’t approved within 15 days, you can move to the next applicant. The clock starts when the tenant submits a complete RFTA to the housing agency. Cooperate, confirm completeness, and document delivery.
Separately, HUD requires both an inspection and a “rent-reasonableness” check before approval and contract execution. No approval by day 15 despite good-faith cooperation? You’re free to proceed.
Small-Landlord Exemption
Virginia has a narrow carve-out. If you own no more than four rental units in the state, you may decline an applicant because of the source of funds. The exemption vanishes if you, personally or through a company, own more than a 10% stake in more than four units in total.
Even if exempt, advertising like “No Section 8” can still violate fair-housing rules. Use neutral, criteria-based ads and consult counsel before relying on this exemption.
Inspections & Paperwork: What Cooperation Really Means
Before approval, the housing agency (PHA) must verify two things: your home passes basic safety checks (HUD Housing Quality Standards) and the rent is reasonable for the market. Only then can they approve and sign the voucher contract.
Don’t stall inspections or paperwork, which can be treated as a refusal based on the source of funds. Respond quickly, keep documents handy, and fix common items in advance: working smoke/CO alarms, safe exits, secure handrails, GFCI outlets near water, and no peeling paint.
Pricing and “Rent Reasonableness”
You are not required to lower your asking rent simply because an applicant uses a voucher. PHAs must determine rent reasonableness under HUD rules. If the proposed rent is too high relative to comparable unassisted units or exceeds payment standards, the PHA will not approve.
In practice, owners either (a) adjust rent, (b) document strong comparables, or (c) proceed with a different applicant.
Security Deposits and Consistency
Virginia caps residential security deposits at 2 months’ periodic rent. Apply the same deposit policy to all applicants regardless of funding source; do not charge a higher deposit because a tenant uses a voucher or benefit. Consistency across screening, deposits, and fees is critical to defensibility.
Compliance Playbook for Virginia Owners
• Write a neutral, criteria-based ad (Virginia Code §36-96.3).
• Put the tenant-portion rule in your written screening policy.
• When you accept a voucher applicant, submit a complete RFTA quickly and track the date.
• Pre-inspect common HQS items to speed approval.
• If day 15 passes with no approval despite cooperation, notify the applicant and proceed under §36-96.2(J).
• Keep the rent-reasonableness file and all PHA correspondence.
FAQ
Can I require higher deposits for voucher tenants?
No. Virginia caps deposits at two months’ rent, and different terms based on the source of funds risk a fair-housing violation.
Do I have to cut my rent to fit a voucher?
No. Approval depends on HUD rent-reasonableness and payment standards; if the PHA cannot approve, you may proceed with another qualified applicant.
What starts the 15-day clock?
The tenant’s submission of a complete RFTA package to the voucher administrator, with the landlord's good-faith cooperation (Virginia Code §36-96.2(J)).
Compliance, Simplified. Vacancies, Minimized.
Virginia’s source-of-income rules are straightforward when you follow the playbook. Apply income tests to the tenant’s share, cooperate on inspections and paperwork, submit a complete RFTA and document it, use the 15-day safety valve, and keep ads and deposits consistent.
Done right, you’ll widen your renter pool, speed approvals, and lock in steadier cash flow with fewer turnovers.
Want the easy button? Gem Realty manages the entire pipeline, pre-HQS walk-throughs, rent-reasonableness support, RFTA tracking, agency follow-ups, and compliant screening, so your units fill faster and stay occupied longer.
Book a 15-minute consult and get a quick compliance check plus a practical plan for your next lease-up!
Additional Resources
Virginia’s 60-Day Non-Renewal Rule: What Fredericksburg Landlords Need to Know
2025 Cost Hikes for Fredericksburg Landlords: Utilities, Taxes & Inspections
