Updated Sept 2026
What Colorado Landlords Absolutely Need to Know
Over 10 million Americans are supported by federal rental assistance under a program known as Section 8 housing. This federal rental assistance is used all over the United States, which means every landlord should have a basic understanding of what Section 8 is and how it works.
In Colorado specifically, this isn’t just background knowledge anymore. Colorado law now requires landlords to accept Section 8 and other housing subsidies, so understanding how the program works has become a compliance issue, not just a business decision.
If you’ve poked around online already, you’ve probably noticed there are far more resources about Section 8 for tenants than for landlords. We’re here to change that.
What Is Section 8?
Section 8 was established in 1974 under the Housing and Community Development Act. The federal government discovered that building and managing public housing was far more costly and time-consuming than providing housing assistance directly. Section 8 vouchers were created to help those who earn significantly less than the median income in their area, generally around 50% or less.
The voucher program works by having the tenants pay roughly 30% of their household income toward rent, with the local Public Housing Authority (PHA) covering the remainder up to a set payment standard. Depending on the tenant’s income, that can mean the voucher covers a small portion of the rent or most of it. There isn’t a single fixed percentage, it depends on the individual household.
Unfortunately, hundreds of thousands of Americans remain on waiting lists for Section 8 across the country. That said, it’s a successful program for those who qualify and get approved.
Colorado Law Now Requires Landlords to Accept Section 8
This is the single most important update for Colorado landlords: as of Colorado’s HB25-1240, every landlord in the state is required to accept applicants who use housing vouchers, including Section 8, regardless of how many units you own. There are no more exemptions for small landlords. Refusing an applicant solely because they use a voucher is considered source-of-income discrimination and a fair housing violation, and noncompliance can bring fines of up to $50,000.
You can still turn down a voucher applicant for legitimate, non-discriminatory reasons, things like a poor rental history, an eviction record, or a criminal background that fails your standard screening criteria. What you can’t do is apply stricter standards to voucher holders or reject someone simply because of how they pay their rent.
A few other rules under this same law are worth knowing:
- Notice periods are longer for subsidized tenants. Landlords must give 30 days’ notice for non-payment of rent, rather than the shorter notice period that applies to non-subsidized tenants.
- Late fees are capped lower. For tenants receiving housing assistance, late fees can’t exceed $20, even if your lease states otherwise.
- Habitability issues affect rent proportionally. If part of a subsidized unit becomes uninhabitable, you may be required to reduce rent and potentially refund payments from both the tenant and the housing authority, for the affected period.
- You’re required to cooperate in good faith with the housing authority, including responding to paperwork and inspection requests in a timely manner.
How Section 8 Works for Landlords Day to Day
Section 8 vouchers don’t grant tenants access to every rental unit in a city. There are regulations on what qualifies, primarily around rent amount, and depending on where you live, the number of bedrooms, bathrooms, or certain amenities may factor in eligibility as well.
If your property qualifies, here’s what the process generally looks like, whether you’re approving an individual tenant or establishing your property as Section 8 housing overall.
Step 1: Contact the PHA in Your Community
If you have an individual Section 8 tenant, you’ll need to submit their lease to the local PHA for approval. If you’re establishing your entire property as Section 8 housing, you’ll need to complete additional paperwork.
Step 2: Pass the Inspection
Once notified, the PHA will send a representative to inspect your property. They’re checking those basic needs, like a working kitchen and bathroom, are covered and that the property is well-maintained. Once you pass, you and your tenant can move forward with signing the lease, and the PHA will request a copy.
Step 3: Stay in Contact With the PHA
Once you have a Section 8 tenant or your property is Section 8 approved, staying in touch with the PHA is part of the job. If you intend to raise the rent, you’ll need to consult with them first, since raising rent past a certain point can affect your property’s Section 8 eligibility.
The Benefits of Being Section 8 Approved
Some landlords have historically expressed concerns about taking in Section 8 tenants, but most of those concerns apply just as easily to non-subsidized tenants. Section 8 tenants have already undergone background and credit checks as part of their voucher application and are, in most cases, perfectly suitable tenants.
Beyond the fact that it’s now required in Colorado, there are real business advantages worth knowing about.
Reliable Partial Rent Payments
Each month, the PHA covers its portion of a Section 8 tenant’s rent directly. That means you’re guaranteed at least partial rent every month, even if your tenant hits a rough financial patch. This lowers your risk of financial instability and reduces your odds of ending up in a costly eviction process. If your property is established as Section 8 housing overall, that assistance applies to all your tenants, since the voucher structure is tied to the property.
High Demand
Section 8 housing is consistently in high demand, in cities and smaller metro areas alike. Landlords with Section 8 approval tend to see lower vacancy rates as a result.
Lower-Cost Advertising
If your property is established as Section 8 housing, your listing appears on PHA-run websites. Combined with the high demand already mentioned, this can meaningfully cut down on what you spend on marketing the property.
Stay Up to Date on Section 8 and Colorado Landlord Law
There are plenty of resources out there for tenants seeking Section 8 approval, but far fewer that answer the question landlords have “How does this work on my end?” We hope this guide has given you a clear picture of what Section 8 is, what Colorado law now requires of you, and why the program can genuinely benefit your business.
As a landlord, staying current on laws like this one matters, and so does keeping your bills, leases, and compliance documents organized. Check out our Colorado Landlord Tenant Laws page for more about current landlord laws.
