Michigan's Source of Income Law: What Landlords Need to Know

Michigan changed the rules for rental screening in 2025. If you own rental property in the state, especially more than a few units, you need to understand how source of income protections affect your application process.

What the law says

According to Michigan Legal Help, starting April 2, 2025, it became unlawful for a landlord to discriminate against a tenant or prospective tenant based on their source of income.

That protection covers tenants who pay rent with sources such as Section 8 Housing Choice Vouchers, emergency rental assistance, and certain government benefits like disability or Social Security.

Who is exempt?

The source of income rule does not apply to landlords with four or fewer units. The general fair housing exemption for certain owner-occupied two-unit properties also still applies.

If you own more than four units, talk to your attorney about exactly how the law applies to your portfolio. Larger owners may also want to read about how multifamily property management increases property value.

What landlords can still do

The law does not require you to accept every applicant. You can still screen based on legally permissible, consistently applied criteria, such as:

• Credit history
• Income verification using a reasonable income-to-rent ratio
• Rental history
• Criminal history related to property damage or illegal drug use, in line with applicable law

The key is that the source of the money cannot be the reason for a denial. Our best practices for tenant screening show how to build criteria you can apply to everyone.

Practical steps to stay compliant

• Remove phrases like "No Section 8" or "No vouchers" from all listings and templates
• Put your screening criteria in writing and apply them to every applicant
• Train anyone who answers phone calls or schedules showings
• Understand how voucher programs calculate the tenant's share of rent when applying income requirements, and get legal guidance on this
• Document the reason for every approval and denial

Voucher tenants can be a strong fit

With the Housing Choice Voucher program, the housing agency pays its portion of the rent directly to the landlord. Inspections and program paperwork add steps, but an experienced manager can handle them.

How JMZ Management helps

We use written, consistent screening standards for every property we manage and keep our marketing and processes up to date with Michigan fair housing requirements. If you are unsure whether your current process is compliant, reach out. For more on your obligations as a landlord, see our guide to Michigan landlord-tenant laws.

This article is for general information only and is not legal advice. Consult a Michigan attorney about your specific situation.

Need help building compliant screening criteria? Contact JMZ Management at 248-284-6990.

CONTACT US to learn more about professional property management in Michigan.