What Landlords Can’t Charge: Unauthorized Fees in the Section 8 Program

by Austin Rowe

The Housing Choice Voucher (HCV), or “Section 8,” program is a powerful tool that helps low-income families afford safe and decent housing—while providing landlords with reliable rental income and long-term tenants. But participation comes with strict rules, especially when it comes to fees and payments.

If you're a landlord (or a tenant), knowing what fees are not allowed is essential to staying compliant—and keeping your Housing Assistance Payment (HAP) contract in good standing.

Let’s break down unauthorized fees based on guidelines from HUD and the Memphis Housing Authority (MHA):

❌ Unauthorized Fees: What Landlords Cannot Charge

1. Side Payments

Landlords may not request or accept any additional payments from tenants outside of what’s approved in the lease and the HAP contract. These “under-the-table” payments—like extra rent, cash agreements, or “key money”—are strictly prohibited and could lead to disqualification from the program.

💡 Reminder: The only rent a tenant can pay is their official portion, as determined by MHA.

2. Extra Rent Beyond the Approved Amount

Once rent is set and approved by MHA, landlords can’t tack on additional charges—no matter how minor they may seem. Charging more than the approved “rent to owner” is a serious violation.

3. Charges for Standard Services

If other (non-Section 8) tenants in the same property are getting services—like trash pickup, parking, or pest control—for free or included in rent, HCV tenants must receive the same.

Adding fees for things like:

Appliance use (e.g. $25/mo for refrigerator)
Air conditioning
General maintenance
…is not allowed if those services are typically included in rent in your local market.

4. Fees for Meals, Furniture, or Support Services

While landlords may offer these extras, they must not be required or used as a basis for eviction. And they must never be built into rent unless clearly optional and compliant with HUD rules.

5. Late Fees on MHA’s Portion

Landlords may charge reasonable late fees for a tenant's portion of rent (as permitted by local law), but never on the MHA’s portion, even if there’s a delay. Late HAP payments are not grounds for eviction or penalty.

6. Non-Standard Application or Move-In Fees

Charging HCV tenants excessive “move-in” or application fees—especially ones not charged to non-HCV applicants—is prohibited. Fees must reflect standard market practice.

7. Excessive Security Deposits

Landlords may collect a security deposit, but it must not exceed what is normally charged for similar unassisted units in the area.

✅ What Can Landlords Charge?

Security deposit (within market norms)
Tenant’s portion of monthly rent
Late fees for tenant’s share (if stated in lease)
Damage charges beyond normal wear and tear
Court-approved legal fees for evictions

🛑 Why This Matters

Charging unauthorized fees can result in:

Termination of your HAP contract
Loss of MHA payments
Legal action or repayment requirements
Permanent ban from the HCV program

The goal of the Housing Choice Voucher program is to ensure tenants and landlords operate in a fair, regulated, and respectful system. When landlords follow the rules, everyone wins—tenants stay housed, and landlords get paid.