For many landlords, the words “Section 8” can trigger hesitation. Some picture endless paperwork, delayed rent, or difficult tenants. Our leasing team hears it often — “Do I have to accept Section 8?” or “Isn’t it just too much of a hassle?”
The reality is different. Colorado law now requires landlords to accept housing vouchers, and with the right knowledge and preparation, participating in the Housing Choice Voucher program can be both legally compliant and financially stable. This article breaks down what Section 8 is, how it works, the requirements under Colorado law, and why embracing it can be a win-win for landlords and tenants alike.
What Is Section 8?
Section 8 — officially known as the Housing Choice Voucher program — is a federal program run by the U.S. Department of Housing and Urban Development (HUD) and administered by local Public Housing Authorities (PHAs). Its purpose is to help low-income families, seniors, and people with disabilities afford safe, decent housing in the private market.
Here’s how it works:
- Tenants pay about 30% of their income toward rent.
- The PHA pays the rest directly to the landlord, up to a locally set payment standard based on Fair Market Rent.
- Vouchers are “portable” — meaning tenants can use them in any qualifying rental property where the landlord accepts vouchers and the unit passes inspection.
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The Legal Landscape in Colorado
Historically, some landlords chose not to accept Section 8. That’s no longer an option.
In May 2025, House Bill 25-1240 went into effect, dramatically reshaping landlord responsibilities. Here’s what you need to know:
- Mandatory Acceptance: All landlords in Colorado must accept all lawful housing subsidies, including Section 8. Refusing an applicant based on voucher use is considered source-of-income discrimination — a violation of fair housing law.
- Good-Faith Cooperation: Landlords must complete necessary paperwork, allow inspections, and communicate with housing authorities.
- Notice Periods: For tenants receiving assistance, the required notice for non-payment of rent is now 30 days (instead of the standard 10).
- Late Fees: For subsidized tenants, late fees are capped at $20.
- Habitability Protections: Landlords must ensure subsidized units meet habitability standards. If part of the unit becomes uninhabitable, rent must be adjusted accordingly.
In short: if you’re a landlord in Colorado, accepting vouchers isn’t optional — it’s the law.
How the Process Works for Landlords
- Tenant Selection: A prospective tenant with a voucher applies for your unit. You may still apply your normal screening criteria (background, references), provided they are applied fairly and consistently, but a credit score cannot be considered
- Request for Tenancy Approval (RFTA): Once approved, the tenant submits this form to the PHA, and your unit is scheduled for inspection.
- Inspection: The PHA inspects the property for health and safety standards. Any issues must be corrected before the lease begins.
- Lease & Contract: You sign both a lease with the tenant and a Housing Assistance Payments (HAP) contract with the PHA.
- Payments: Each month, you’ll receive the PHA’s portion of the rent directly, and the tenant pays their share.
- Ongoing Compliance: Expect periodic inspections, and remember that any rent increases must be approved by the PHA.
Myths vs Reality
| Myth | Reality |
| “Section 8 tenants are high-risk.” | Studies show no greater risk of property damage compared to non-voucher tenants. In fact, many voucher tenants stay longer, reducing turnover costs. |
| “The rent is too low.” | Payment standards in the Denver metro area are competitive: ~$1,789 for a 1-bedroom, ~$2,140 for a 2-bedroom, ~$2,794 for a 3-bedroom. Tenants can cover rent above the standard if within program rules. If market rent is higher, there is no requirement to accept a voucher for less than the full amount |
| “Payments are unreliable.” | Government payments are consistent and on time. The PHA portion is guaranteed every month. |
| “It’s too much red tape.” | While inspections and paperwork exist, most landlords find the process smoother after their first voucher lease. Many report fewer headaches once systems are in place. |
Benefits for Landlords
- Guaranteed Income: The PHA’s portion of rent arrives monthly, on time.
- High Demand: Many families are searching for voucher-friendly units, meaning shorter vacancies.
- Longer Tenancies: Voucher holders are often more likely to renew leases.
- Community Impact: Providing stable housing strengthens neighborhoods and fulfills a vital social need.
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Challenges to Consider
- Inspections: Units must meet health and safety standards. This may require upfront or ongoing maintenance.
- Delays: The first payment may take time while contracts and inspections are finalized.
- Rent Caps: PHAs may not approve rents above their standards. Research your local payment standards before setting rent.
Why Accepting Section 8 Vouchers Can Be Good Business — And Now, Required in Colorado
The most important reason to consider accepting Section 8 vouchers today is simple: Colorado law requires it. Under HB 25-1240, refusing to rent to someone based solely on their use of housing assistance is a form of unlawful source-of-income discrimination. This means landlords who turn away voucher holders could face complaints, fines, or lawsuits. Compliance is not optional.
But beyond the legal requirement, there are several solid business reasons why embracing Section 8 can benefit your portfolio:
- Reliable Rent Payments
A portion of the rent is guaranteed by the government. Even if a tenant’s personal financial situation changes, the PHA’s contribution remains steady. For many landlords, this consistency has been a safeguard against unexpected income loss. - Reduced Vacancy
Demand for voucher-friendly units in Denver is high. Accepting Section 8 often means shorter downtime between tenants and less money lost to empty units. - Longer Tenancies
Voucher holders frequently stay longer because finding another voucher-approved unit can be difficult. This stability translates to fewer turnovers, lower marketing costs, and less wear and tear from frequent move-outs. - Expanding Your Tenant Pool
By opening your doors to Section 8, you gain access to a wide pool of pre-screened applicants. PHAs require tenants to meet certain eligibility and compliance standards, adding another layer of accountability. - Community Impact
Beyond financial return, landlords play an important role in addressing Denver’s housing challenges. Providing stable homes for families, seniors, and people with disabilities helps strengthen communities — which in turn can enhance neighborhood stability and property values.
Ultimately, while the law now mandates acceptance, landlords who adapt quickly and see the program as a tool — rather than a burden — often find that Section 8 brings not just compliance, but consistency and opportunity.
Best Practices for Landlords
- Know Your PHA: Each housing authority sets its own payment standards and inspection protocols. Build relationships with them.
- Be Inspection-Ready: Regular maintenance prevents delays. Fix known issues before inspection.
- Apply Consistent Screening: Use fair, non-discriminatory criteria for all tenants.
- Budget for Timing: Set aside funds to cover potential delays in first payments.
- Keep Paperwork Organized: Timely responses to PHAs keep the process smooth.
The Bottom Line
Colorado landlords must now accept Section 8, but that doesn’t mean it’s a burden. In fact, many landlords discover it provides steady income, lower vacancies, and longer tenant retention. By approaching the program with the right knowledge and systems, you can comply with the law and protect your bottom line.
If you’re unsure where to start, Keyrenter Denver can help guide you through the process — from compliance to property management.