How Landlords Can Access Government Incentives for Accepting Low-Income Tenants

Many governments around the world offer incentives to landlords who rent to low-income tenants. These incentives seek to increase affordable housing, reduce homelessness, and assist vulnerable populations. For landlords, these incentives help reduce risk, improve cash flow, and sometimes reduce taxes or other costs. Below are the main types of incentives, how to find them, the steps to access them, and considerations landlords should keep in mind.

Types of Incentives Offered

These are the types of incentives that governments and agencies typically offer landlords who accept low-income tenants:

Bonds or direct financial payments

Signing bonuses, move-in incentives, brokerage commissions, retention bonuses, or one-time payments when a lease is signed with a voucher or a low-income tenant. For example, Boston, Massachusetts, offers signing bonuses, brokerage commissions, etc., to landlords who provide housing to families leaving the streets.

Guaranteed Rent or Subsidies

Programs in which a government or agency helps guarantee part (or all) of the rent through vouchers or assistance, reducing the risk of default. For example, the Section 8/Housing Choice Voucher program in the U.S.

Damage and Hazard Mitigation Funds

Funds that reimburse landlords for damages caused or help cover losses if a tenant leaves early, etc. The Wichita Landlord Incentive Program is one example.

Reduced Taxes / Tax Credits

Property tax reductions, income tax incentives, or credits for renting to low-income tenants or offering below-market rents. Some inclusionary zoning or affordable housing programs include these elements.

Property Tax Waivers or Other Exemptions

For example, in certain Australian jurisdictions (ACT), incentives offer property tax exemptions or rebates for properties rented at below-market rent to qualifying tenants.

Energy Efficiency / Improvement Grants

Some grants are targeted at landlords who improve their properties with energy efficiency, insulation, and heating systems, provided they rent to low-income households. Example: A UK program offers up to £15,000 for energy improvements, but only if rented to low-income tenants.

How to Find Available Incentives

To access incentives, landlords must first understand their availability. Consider the following ways to identify programs:

Government Housing Departments/Agencies

Check with your local, state/provincial, and housing or social services departments. They often publish incentive or assistance programs for landlords on their websites or through information offices.

Public Housing Authorities/Local Housing Voucher Agencies

In jurisdictions that use voucher systems (e.g., Section 8 in the U.S.), the local authority will have information and contact points for landlords.

Nonprofit and Community Organizations

Many nonprofit organizations act as intermediaries, helping landlords and tenants navigate the application or matching processes. They may also have programs or collaborate with the government to offer incentives.

Tax Offices / Departments of Revenue

To obtain tax credits/exemptions, your regional tax authority usually publishes guidelines. Sometimes, you may need to apply for them separately.

Real Estate Associations / Ownership Groups

These associations often maintain summaries of incentive options and can lobby to promote them. Being part of these networks can help you stay informed about programs in advance.

Legislation and Policy Announcements

Be on the lookout for new housing laws, energy efficiency regulations, or stimulus programs, which often include affordable housing incentives.

Steps Landlords Should Take to Access Incentives

Once you know an incentive program you might qualify for, these are the typical steps:

Determine Eligibility

What defines a “low-income tenant” in that program (income thresholds, benefits, household size)?

What are the property requirements (condition, inspections, minimum standards)?

Does rent have to be below a certain percentage of market rate?

Prepare Your Property

Make sure it meets the safety, health, and housing quality standards required by the program.

If energy or energy-efficiency improvements are part of the incentive, complete the necessary work and obtain certifications.

Register/Apply

Submit the required forms to the appropriate agency.

For tax incentives, you often need to register in advance or file a tax return.

For voucher programs, you may need to register with your local housing authority and agree to inspections.

Adjust the lease/screening criteria if necessary

Some programs require you to modify screening policies (e.g., not rejecting previous evictions or lowering income thresholds).

You may be required to accept referrals from the housing agency.

Document everything

Keep clear records of leases, tenant eligibility, improvements or repairs, and correspondence with agencies.

For audits or to justify tax claims, you will often need proof.

Maintain regulatory compliance over time

Maintain property standards, retain documentation, and respond to inspections.

Ensure that the rent remains within allowable limits and that tenant eligibility remains valid.

Steps to Take

1. Contact your local Public Housing Authority (PHA): Find your local Public Housing Authority (PHA) to learn about the HCV program in your area and the specific incentives it offers, such as move-in payments for homeowners.
2. Contact your local Housing Finance Agency (HFA): For the LIHTC program, you’ll need to contact your state or local HFA to learn how to obtain tax credits for your property.
3. Consult other resources: For properties in rural areas, research programs offered by the USDA/Rural Development Department.
4. Use 211: If you have trouble finding programs or contacts, call 211 for assistance.

How to become a Section 8 landlord?

To become a Section 8 landlord, contact your local Public Housing Authority (PHA) to learn about the program’s specific requirements and complete your application. You’ll need to ensure your property meets HUD’s Housing Quality Standards (HQS) and pass an in-person inspection. Once approved, you’ll negotiate rent, sign a Housing Assistance Payments (HAP) contract for tenant rental subsidies, and then begin accepting applications from Section 8 participants.

Visit the U.S. Department of Housing and Urban Development (HUD) website to find the right PHA for your area. Each PHA has unique requirements and application methods, so it’s critical to get the most accurate information directly from them.

Tips for Landlords

Before registering, calculate the total benefit versus the additional cost: tax savings + bonuses + vacancy reduction versus time spent, maintenance, and lower rent.

Build relationships with housing authorities or nonprofit organizations. They can help you with referrals and reduce the administrative burden.

Keep properties in good condition: meeting standards is key to accessing and retaining incentives.

Be transparent with tenants about eligibility and lease requirements.

Be proactive: Many programs have limited funding or applications are only open at certain times.

Conclusion

Government incentives offer a real opportunity for landlords to serve low-income tenants sustainably. By reducing financial risk, offering subsidies or rebates, and sometimes reducing the tax burden, these programs facilitate the provision of affordable housing. For landlords willing to perform due diligence (researching programs, ensuring property standards, and complying with requirements), the benefits can go beyond financial returns and become a social good: more stable rents, helping to reduce homelessness, and contributing to stronger communities.